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1. Don't buy if you
can't stay put.
If you can't commit to remaining in one place for at
least a few years, then owning is probably not for you,
at least not yet. With the transaction costs of buying
and selling a home, you may end up losing money if you
sell any sooner.
2. Start by checking and increasing your credit
score, if necessary.
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.
Credit reports are free from each bureau once annually.
3. Aim for a home you can really afford.
The rule of thumb is that you can buy housing that runs
about
two-and-one-half times your annual salary. But you'll do
better to 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. Don't worry if you can't put down the usual 20%.
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 3% of the purchase
price. Also, there are MANNY wonderful first-time home
buyers' programs, many of which you probably don't know
about. Contact Laura B. today for more information on
these wonderful programs.
5. Buy in a district 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 strong
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 picking a mortgage, you usually have the option of
paying additional points (a portion of the interest that
you pay at closing) in exchange for a lower interest
rate. If you stay in the house for a long time, say five
to seven years or more, it's usually a better deal to
take the points. The lower interest rate will save you
more in the long run.
8. Before house hunting, get pre-approved.
Getting pre-approved will you save yourself the grief of
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. This is a
must!
9. Do your homework before bidding.
Make your agent do this for you. This is all part of
their job. Whether you use me or not, make sure your
agent is doing this very important part of the buying
process. Your opening bid should be based on the sales
trend of similar homes in the neighborhood. So before
making it, consider sales of similar homes in the last
three months. If homes have recently sold at 5% less
than the asking price, you & your agent should make a
bid that's about eight to 10% lower than what the seller
is asking.
10. Hire a home inspector.
Sure, your lender will require a home appraisal anyway.
But that's just the bank's way of determining whether
the house is worth the price you've agreed to pay.
Separately, 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.
Also read:
Process of Buying a Historic Phoenix Home
Financially Preparing
Yourself
To
Buy a Home
4 Critical Factors In
Choosing A Phoenix Historic Homes Realtor
Adjustable-Rate
Mortgages (ARMS)
10 Reasons Why You Should
Move to Phoenix, Arizona
Also
read "What You Can Expect From Laura B."
For More Articles,
News & Stories, Go to My Historic Phoenix Blog
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10 things to know and to do when buying a home
For first-Time Home Buyers
36 Phoenix
Historical Homes Districts
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Laura Boyajian
Mobile: 602.400.0008
Fax: 602.808.9559
Email:
Laura.B@cox.net
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