Are you looking to buy a home or property? Do you know how much cash to buy a house is needed these days? Are you looking to buy brand new or are you up for a reno?
Even if you’re a new home buyer, you can still go into this experience like a pro. Here’s how you can do it:
Commit yourself for long-term
Recognize and accept that real-estate is a long-term investment so be ready for the long haul. If you’re still hesitant, you are better off renting instead.
It’s best to really wait until you can afford what you want and are really ready to stay in one place for at least 6 years.
Create a budget
It’s never too early when it comes to creating a budget as you have to know how much you really can afford for housing expenses. A budget is a must even before you start looking at houses. Likewise, your max budget should include some sort of emergency fund to cover any surprise expenses.
Secure loan pre-approval
Getting pre-approved means that a lender has gone through your financial information and has let you know how much you can afford and how much they can lend you. Aside from having this security, you also won’t be wasting any time and energy looking at homes you can’t afford.
Check the neighborhood
Before even buying, go see the neighborhood. The house may be great but what if the neighborhood isn’t? Visit at all times of the day to see what actually goes on there. Check how far it is to the nearest grocers, schools, etc. Do a regular commute from the house to see if it works for you.
Hire a trusted home inspector
A home inspection can help check the real status of the house. These unbiased findings can help you make the decision whether to buy or not. Any issues found in the house can also be used as a bargaining chip to lower the price.
If you find yourself in a bidding situation, your opening bid should be based on 2 things – what you can afford and what you believe the property is worth. It also should be at a fair price that won’t offend the seller. Be specific with your numbers too as sellers would know you are serious.
Check for sleeper costs
These are costs that come with home ownership such as maintenance, taxes, etc. Budget for sleeper costs to properly maintain and keep your home.
Make sure that the property you want to buy has been properly surveyed to avoid any border disputes. Property tax is also based on how much property you have so it’s best to have an accurate map drawn up for this.
Don’t try to “time the market”
Remember that the housing market is cyclical and anticipating when it is up or down can be impossible. The best time to buy a house is when you can afford it.