WHAT TO KNOW BEFORE BUYING A HOUSE?

  1. 1. HOW LONG WILL YOU STAY IN THIS HOUSE?
    • a. Unless you are trying your hand in the home flipping world, you should plan on living in your new house for at least two years. The reason being there are multiple costs associated with buying and selling a house. If you sell right away you may end up losing money, even in rising markets.
  2. CHECK YOUR CREDIT.
    • If you will need a mortgage to purchase a house, you will need your credit to b as good as possible. In the months prior to starting your home search get a copy of your credit history. If necessary fix any problem you discover.
  3. 3. GET PRE-QUALIFIED (PREFERABLY PRE-APPROVED) FOR A HOME LOAN.
    • This will tell you what price range you can afford and keep you from falling in love with a property that is out of your range.
  4. 4. CREATE A BUDGET. (Multiple budgeting programs are available)remember to factor in:
    • Down payment deposit
    • House payment (payment should not exceed 28%-38% of your gross monthly income)
    • Taxes
    • Insurance
    • Utilities
    • Credit cards balances
    • Auto expenses / School expenses / Household expenses
    • Etc.
  5. IDENTIFY PROPERTY SEARCH AREAS.
    • Identify neighborhoods where you would like to live, consider what area best fits your life style and needs. Remember to consider: location to shops, malls, road access, commuting times to/from work and school districts. Even if you do not have children in school, when it comes time for resale, areas with good school districts are top priority for many families thus driving property values up.
  6. DO YOUR HOMEWORK BEFORE SUBMITTING AN OFFER.
    1. a. The initial bid should be based off the last three months sales of similar homes in the neighborhood. Determine if homes in that area are going for more or less than the current asking price. If recent sales show homes have sold for 5% less than asking price, your first bid should start 7%-10% below asking price.