Home buying guide – 5 Essential Tips

Buying a house is once-in-a-lifetime investment. Make sure you make the right decision. Follow this simple home buying guide to get yourself the best deal.

(1) Get yourself an agent

I do not personally like agents. Their fees inflate house prices. Houses are already expensive- add to them the agent fee and you have an overblown budget. Despite my personal feelings, I know how important it is to hire an agent when you are going to buy your first house. Agents can navigate you through the legal mumbo-jumbo and help you find your first home through their local area expertise. Since they have the connections, they can make your purchase smooth and easy.

(2) Find the right home

For many Americans, a home is the most expensive thing they will purchase in their lifetime. When a person decides to buy a home, he essentially needs a place where he would like to settle down. This makes buying a home an emotional decision as well. A real estate agent will show you several homes. This wealth of choice can make your head spin even though prolonging the buying is not a wise business decision. So make sure you find the right home, and soon.

(3) Loan

Unless you have just won a million dollar lottery, or you have suddenly grown very rich, chances are that you’ll need a mortgage to pay for your first home. It makes sense to get a loan pre-approval as there are sellers who will not even consider showing you the place unless they are sure you can get a loan. The FHA sets the minimum down payment requirements. The minimum down payment for a house is less than many conventional purchases. You will have to compare several mortgages to choose the one which suits you the best. Your agent can also help you find a good mortgage.

(4) Negotiate

Some sellers ask sky high prices for their property. This is where your negotiation skills will help you. Your agent will also help you out by compiling data from similar sales which have occurred in that neighborhood for the past three months. You can also find the correct property value through an online property value report which evaluates the true value of a property. One such report can be found for free here from Neighborhood IQ. This data gives you the power to negotiate.

(5) Home inspection

In several states in the US, a home inspection is an essential part of the contract which allows the buyer to cancel the agreement if there is a fault with the house. This gives first-time home buyers a power over sellers who may try to oversell them a house with a faulty foundation or some other issue. It should be mentioned here that the discovery of a fault does not mean a seller is legally required to make repairs. The inspection only gives power to the buyer to cancel the contract. In reality, most buyers ask for repairs, and most sellers agree.

If you are ready to make your first purchase, make sure you start early- the property rates are rising and the sooner you act, the better.