House hunting can be a nightmare if you don’t know where to begin. Luckily, the spring months are one of the best times to buy a new home, so you should be able to save a pretty penny if you’re shopping right now. However, there are a few more ways for you to enjoy the house hunting process without stressing over how much money you’re about to have to spend. These ten tips will nudge you in the right direction, so you’ll know what questions to ask or how to move forward when you choose to buy your home. So, with a little luck, you’ll be starting your fresh new beginning in no time.
1. Save, save, save
Sure, buying a home can be incredibly exciting and you may not want to hold your horses when it comes to signing the papers and moving in. However, you do want to take adequate time to sit back and save before you actually make any purchases. If you’ve never bought a home before, you may not realize just how important a down payment is. Sure, when you put down a down payment on a new car, the price tag might not seem as astronomical, but when it comes to a home you’re going to need the big bucks to help you out. You may be able to buy a home without a substantial down payment, depending on the financing you qualify for, but if you can put in a big dent on the home’s mortgage. A higher down payment often means lower monthly payments. This will enable you to easily put back more money to eventually pay off the home or to fix it up. Of course, your low payment could also allow you to double the payment you send in each month, which will pay off the home in half of the time.
2. Hire an Inspector
Although it may seem like spending money, especially when you haven’t truly claimed the house as your home, you should still hire an inspector. This can be a crucial step in securing a home that isn’t going to become a money pit the day you in move into it. An inspector will be able to check the foundation, piping and make sure there are no dangerous leaks or hazards that you’re going to have to deal with in the near future. Some may even be able to check to see how energy efficient your home will be, so you can save more money in the long run. Hiring an inspector is like creating an insurance policy before you even sign the dotted line. Some banks may actually require you to bring in an inspector before they will offer you funding. Also, with an inspector’s write up, you may even be able to get a better rate on your home owner’s insurance. You can also do your own quick inspection that will help you decide if you need to call in a professional.
3. Buy What You Need
A lot of first time home buyers have a grand idea of what kind of home they’d like to live in. So, they often shop for homes with numerous bedrooms, huge living spaces and gigantic backyards or property lines. If you’re simply a couple then all of this can be a bit too much home, especially if you’re not ready to begin a family. Even if you do have a family, don’t shop for mansion sizes unless you know you need all of the space. Most families are content in a 3-bedroom home, so you don’t have to go crazy for size. Not to mention, the home you buy won’t necessarily be yours forever. You may choose to sell it or move to a different city, so you’re not locked in forever. You can also consider homes that may allow you to build on to them, as this will ensure you’ll have access to move space if you need it.
4. Shop For Loans
A lot of people believe they should stick with their own bank when it comes to taking out a mortgage loan. However, this could really cost you a lot in the long run. There’s so many companies out there that work to bring mortgage loans to the public, so you may be missing out on a great deal on interest. Some realtors will help you find a great loan, but you may have to do a lot of work yourself. If you can, do a little research online to see where you should start looking. After quite a few calls and a whole lot of quotes, you may be able to find a great interest rate. Of course, you may also want to look at the reviews for each company too, as this will ensure you won’t end up with a company that is hard to work with or who changes policies often.
5. Look to the Future
Although, initially, when we look for a home, we are mostly thinking about the present, you may want to also look to the future too. For instance, is the layout something you will be able to work with if you choose to add an addition to the home? Also, how long will the piping last and how expensive will it be to fix it if something were to break. Of course, renovations are another subject to consider when looking into a home. One of the more common renovations is kitchen cabinets. So, you may want to see if the kitchen is an awkward shape, or if you may have problems buying and installing new counters. In this day and age energy efficiency is important to. One thing to consider here is the cooling and heating system as these could be very inefficient if you’re living in an older home. Also, you might look around to see if bathroom fixtures, particularly toilets, can be replaced with water saving designs. Last but not least, you might want to have an inspector check to see if solar panels would ever be an option in the home.
6. Hire a Realtor
A lot of people tend to want to go through the house hunting process on their own as they feel it will not only save them money, but will also help them find the freedom they need during their search. Although freedom is a big plus when it comes to house hunting, you probably won’t go as far without a realtor to back you up. Generally, realtors know the ins and outs of the community and can find just about anything you’re looking for in a home. So, with a few chosen traits, your realtor may be able to come up with a long list of homes that you should check out. Better yet, the realtor will even make getting a walkthrough much easier. Although you will have to pay them some money, they will be able to guide you through every step of finding the perfect home, financing it and sometimes even moving into it. You’ll save time, energy and a whole lot of stress with a professional on your side.
7. Negotiate
You may feel that negotiation is a dying art form and something that isn’t accepted in this day and age. This can’t be further from the truth when it comes to buying a home though. You really want to bring your negotiation skills to the table here, or have someone with you that is pretty good at maneuvering their way into a good deal. When it comes to buying a home, always try to put in a bid that is lower than asking price, it’ll let you know how the sellers are so you can either further your haggling or simply walk away if the price isn’t right. Apart from the initial price tag, you may even be able to negotiate yourself into the sellers paying the closing costs of the home or at least putting in half.
8. Check Out Foreclosures
Surfing the market isn’t the only way to find a great house. You may want to look at a list of foreclosures too. Sometimes, these homes can go for next to nothing, so you may want to see if anything suits your needs. Of course, when it comes to these homes, make sure you check them out first. Generally, there is an open house for the homes, especially if they’re going to auction. On auction day, make sure you know your limits for spending and be quick on your feet. You may be able to snag your dream home at a price that is sure to leave you feeling nice and comfortable for years to come. Of course, not all of the homes go to auction, so make sure you know the terms of the sale before you get attached to the idea of buying the home.
9. Know the Neighborhood
Often, potential home owners began their house hunting adventure by choosing a specific neighborhood that they want to live in. They have usually researched the school district as well as shopping and restaurants nearby. This is an incredibly smart thing to do; however, you shouldn’t get fixed on living in one specific area. In fact, if you branch out your search a bit, you may find that there are actually homes that are in the same school district and a safe location that are actually much cheaper. The appeal of certain neighbors can really hike the price, so make sure you map out a large area before you hone in on one specific neighborhood. You never know, by doing this, you could wind up finding something extra special in a place you would have never thought to look.
10. Tax Credits
Although this typically comes after you’ve purchased the home, you should take advantage of the tax credit that will be coming your way when you finalize your purchase. If you’re a first time home owner, then you may be eligible to receive some pretty awesome benefits. For instance, you can borrow up to $10,000 from your IRA fund to help with the purchase of your new home, which will come in handy when you need that hefty down payment. Apart from that, you can deduct the interest costs on your mortgage as well as home improvement loans you take out. If you believe you deserve a deduction on your home, then get in touch with your accountant to see what magic they can create on your tax returns. You’ll be more than happy that you did when you get a refund that can help pay down your mortgage all the more.
House hunting can be a huge headache, as it will be a lot of work no matter how prepared you are. However, these ten tips will help prevent your head ache from worsening thanks to the financial cushion it will provide. Now, you can get more out of the house hunting experience, without having to pay in more too.
