Tip #1 Make a budget
Before you step into the market, find out your net worth and your loan eligibility. Don’t forget to deduct the cost of any other loans and liabilities you are still shouldering. The amount that remains is your final, real budget. The more accurately you can project your expenses in your new home the better. Plan to have $5,000 to $10,000 set aside for extras, to avoid unforeseen costs. This will take care of additional expenses like closing costs which can vary between 2% to 5%.
Tip #2 Know, Understand & Embrace your Credit Score & plan accordingly
Check your credit sooner rather than later. That way, if you find any credit issues on your report, you’ll have time to take care of them and boost your credit score before a mortgage lender reviews your credit. If your credit score is weak, take your time and work on it. Get back to your savings and see if you can collect more for down payment.
Tip #3 Get your Mortgage pre-approval to know what budget will be best suitable for you
A true pre-approval is actually a sophisticated process, requiring the detailed attention of a potential lender. The Mortgage will depend on your credit score, a thorough analysis of your income, and the nature of your down payment, among other factors.Applying for a mortgage pre approval, finding a home, getting the final mortgage approval, and then pulling off the final house closing often takes between six weeks and six months, but prepare for it to take longer. During this time, it’s important to maintain good credit so nothing throws a wrench into your final mortgage approval at the time of actual closing.
Tip #4 Surf through the good property buying websites
According to the 2020 National Association of REALTORS® Profile of Home Buyers and Sellers, 51% of buyers found the home they purchased on the internet. Post Pandemic the Real estate websites are attracting so many eyeballs every month because they are adding value for both buyers and sellers. Buyers can preview hundreds of homes within a few hours from the comfort of their couch. Home sellers win, too; their home’s features and pictures are viewed by hundreds of shoppers in the market to buy a new home. Buying and selling a home can feel overwhelming without wondering which website to use. To give you a head start on this journey, it is important that you surf through the property selling websites and find the best among them.
Tip #5 Make a well informed price offer
When shopping for a home, it’s important to get a sense of the market by looking at recently sold homes, comparable homes on the market and available for viewing, and comparables taken off the market because they didn’t sell. You should also try to determine whether you are in a buyer’s or seller’s market and if the neighbourhood is appreciating or depreciating in desirability. Be sure to pay attention to your realtor’s advice on price. Be prepared to negotiate rather than just accepting the seller’s asking price.
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