Buying a home is a big deal and an exciting experience. There is a lot to
consider before you begin the process, and many different factors can affect
how you go about searching for a home. Before making the commitment to look for
a new home, here are some important steps to take into consideration:
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Seek out a neighborhood that suits you and your lifestyle. Take the time to
learn about the neighborhoods you’re most interested in and get a feel for what
they can offer you. Depending on what is important to you, you will want to
look into things such as the school district, taxes, crime rate, traffic,
property values, proximity to conveniences and entertainment venues, and plans
for area development.
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After you decide on several neighborhoods, start choosing homes to view. To
help narrow your search, determine the type of home you want, such as a ranch
or two-story; the interior and exterior features that are most important to
you; acceptance level for the condition of the home; condition of neighboring
homes; re-sale value potential; and neighborhood amenities. A wish list can be
a helpful tool—consider starting your list by thinking about what you like and
don’t like about where you currently live.
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Get pre-approved for a mortgage. It is a good idea to get pre-approved before
you actually begin house-hunting so you have a better idea of the types of
homes you can actually afford. The main factors that will determine your
pre-approval include household income, your creditworthiness, interest rates,
the type of loan you select, and how much available cash you have for the down
payment and closing costs. Getting pre-approved for a mortgage will put you in
a better position to make a serious offer when you do find the right home.
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Before making an offer, do your homework. Compare prices of similar homes in
the same and nearby neighborhoods. Talk with the neighbors to find more
information out about the neighborhood and the home you’re interested in. Make
sure your offer coincides with what you feel the value of the home is based on
property comparisons, the appraisal, and your individual perspective.
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Hire a qualified home inspector. Most real estate transactions allow the buyer
to order one or more professional inspections of the home before completing the
purchase. When hiring a home inspector, take into consideration qualifications
of the inspector; what the inspection covers and how thorough it will be; if
you can request a sample report; and if the inspector can provide references of
several homeowners who have used the inspector’s services.
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Keep in mind that you save taxes when you buy, own, and sell a home. The
mortgage interest deduction and the deduction for property taxes are major
benefits to you. Most homeowners can deduct the mortgage interest they pay.
Property taxes, also known as real estate taxes, are deductible from your
income.
Even though the steps involved in buying a home can be overwhelming at times,
you’ll be much more satisfied with your purchase if you take the time to do the
proper research and make decisions based on your comfort level and goals.
