If you’re in the market for a house this spring, there are a number of steps you can take to try to give you the advantage over other home buyers, including:
Get started early finding a Realtor® to work with. Interview three or four, get references and let the person you choose know exactly what you’re looking for. It is important to like and trust your Realtor® this is one of the largest purchases of your life.
Get your financing pre-approved. This will give an advantage on several fronts. First, it will be done and out of the way. Second, you’ll know how much the bank is willing to loan you, so you know in which price range to look. And third, it shows sellers that you’re serious and ready to buy when you make an offer. Your loan officer should be able to get you a pre-approval letter that should be presented with your offer.
Figure out how much you have for a down payment. First-time buyers typically make a down payment of 6 percent on a home purchase, and 24 percent of down payment funds were gifts from relatives or friends. If that’s not an option, there are many loan programs that accept down payments of five or three percent. And don’t forget closing costs, which will often run two to seven percent of the property’s purchase price.
Begin thinking about homeowners’ insurance now. Begin by making sure your credit report is accurate; credit histories are sometimes used to determine whether a company will insure you, and if so, at what rate. And if you’re renting, make sure you have renter’s insurance as it’s helpful to have insurance history when you obtain insurance for your new house.
Be ready at a moment’s notice. If you’re in an especially tight market, your Realtor® will be reviewing new listings as soon as they’re available. If he or she finds something that matches your criteria, you’ll want to look at the house and be ready to make an offer quickly.
When looking at houses, look at the potential. There are major factors you won’t be able to change: the neighborhood, proximity to work and schools, the basic floorplan of the house (unless you plan on completely renovating), and size of the back yard, among other things. If you’re put off by paint or carpet color or old linoleum floors, envision what the walls will look like with your color of choice and the floors in a material you prefer.
Listen carefully to your Realtor® about how much you should offer. If there’s competition, you may want to offer more than the listing price and you shouldn’t try asking for things like carpet allowances or a long closing date. If you know sellers may have several offers in front of them, you’ll want to make yours the best. Your Realtor® can show you comparable sales in your
This article was brought to you by Carrie Colby, owner of Premier Properties in Raymond.