Home Buying Tips

1. If there is a chance you might have to move within a short period of time you might want to reconsider buying.

If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, especially if you don’t have a sizable down payment. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner – even in a rising market. When prices are falling, it’s an even worse proposition.

2. Strengthen your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Target a home you can really afford.

Use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

4. If you can’t put down the traditional 20 percent, you may still qualify for a loan.

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 5 percent of the purchase price.

5. Buy in a neighborhood with good schools.

In most areas, this advice applies even if you don’t have school-age children. Reason: When it comes time to sell, you’ll learn that h3 school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help.

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate.

When choosing a mortgage program, you usually have the option of paying discount points. These points will allow you to buy down the interest rate which lowers your payment. If you plan on staying in the house for a long time it’s usually a better deal to have the lower rate and pay the associated discount points.

8. Before you begin house hunting, get pre-approved.

Getting pre-approved will you save yourself from looking at houses you can’t afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. Contact your Elite Mortgage Capital Loan Consultant to get pre-approved.

9. Hire a home inspector.

You should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.