Tip No 1: Leave Your Money Where It Is
It’s not advisable to make big purchases or move your money back and forth three to six months before buying a new home. You don’t want to take significant risks with your credit profile. Lenders need to see that you are reliable, and they want a complete paper trail so they can give you the best possible credit. If you open up new credit cards, accumulate too much debt, or make any large purchases, you will have difficulty getting a loan.
Tip No 2: Don’t Try To Time The Market
Don’t try to time the market and figure out when is the best time to buy. Trying to predict the real estate market is impracticable. The best time to purchase is when you have found your perfect home and can afford it. Real estate is cyclical. It goes up and down. So if you try to time the market for the most ideal moment, you will probably miss out. Bigger is not always more beneficial.
Everyone is drawn to the most significant, most excellent house in the neighbourhood. But bigger usually does not mean it is better when it comes to homes. There’s an old saying on property that states you shouldn’t buy the biggest and best apartment in the neighbourhood. The biggest house only appeals to a tiny audience, and you never want to limit potential buyers if you’re going to resell it. Your home may only increase in value as much as the other homes around you. If you pay $600,000 for a home and your neighbours pay $450,000 to $500,000, your appreciation will be limited. Sometimes it’s most beneficial to buy the worst house on the block because the most unfavourable place per square foot will always trade for more than the most outstanding house.
Tip No 3: Avoid Threshold Costs
The difference between renting and homeownership is sleeper costs. Most people focus only on the mortgage payment, but they also need to be aware of other expenses like property taxes, utilities, and homeowners association dues. New homeowners also need to be prepared for repairs, maintenance and potential property tax increases. Make sure you plan for threshold costs, so you are covered and don’t risk losing your home.
Tip No 4: You’re Buying A House – Not a Date
Buying a home based on emotion will only break your heart. If you fall in love with something, you could end up making some pretty bad financial decisions. There’s a big difference between your emotions and your instincts. Going with your instincts means you realize you’re getting a great house at a great price. Going with your emotions means obsessing over the paint or the yard. It’s an investment, so stay calm and be wise.
Tip No 5: Investigate Your House
Would you buy a car without looking under the hood? Of course, you wouldn’t. Hire a home inspector. It costs about $200 but can save you thousands in the end. A home inspector’s only job is to provide you with information so you can make a decision on whether or not to buy. It’s really the only way to get an unbiased third-party opinion. If the inspector finds any problems with the home, you can use this as a bargaining chip to lower the house price. It’s better to spend the money upfront on an inspector than to find out later that you have to spend a fortune.
It’s common to be told that the apartment is just minutes from the bus station or the nearest mall. But remember that such guesstimates are usually exaggerated, and you shouldn’t accept them at face value. Distance and speed depend on who is travelling; it may be a four-minute brisk walk for a 26-year-old man, but not for your 50-year-old woman who stays with you.
Tip No 6: Check For Loan Shark Graffiti
One warning sign you should definitely look out for is the presence of graffiti left by loan sharks. If the home has been targeted by loan sharks, the seller will have cleaned up the trail before the inspection. However, you will often detect loan shark graffiti in the stairwell and lift lobby. Remember to closely inspect the main door’s paint; sometimes, you can still see the graffiti under a thin layer. You might also be a victim of collateral damage. For example, when a neighbour is having problems with loan sharks. Also, be conscious of private CCTV cameras that have been installed that are pointed at the common hallway. This may be a sign of loan shark problems