Want To Buy A Home? Top Tips for Post-Recession Home-Buying

The economy is slowly bouncing back, and for the first time in a long while, people are willing to dip their toes in the water of home ownership. Though cautionary tales of underwater mortgages, foreclosures and “accidental landlords” abound, consumer confidence is rising in the housing market. But we live in a different world now than in 2007. What was standard advice then doesn’t work so well now. Here’s what you should know to get the house of your dreams — not a nightmare Get Pre-Approved For Your Mortgage It’s so easy to get pre-qualified, the designation might as well not exist. Many would-be homebuyers have been heartbroken to find that the bank wouldn’t extend a loan for the full asking price of the home they wanted, putting them back at square one. To avoid this situation, work on getting pre-approved for a loan. With a firm offer on a dollar value for a mortgage, you’ll be able to save time and effort by only seeking out properties you know you can afford. You’ll also have the chance to shop for the best interest rate at your leisure, rather than when you’re under the gun to make a deal. Protect Your Credit Before going house-hunting, make sure that your credit is in tip-top shape. That means you’ll want to lower your credit utilization as much as possible, and not be taking out any more credit for at least 6 months before applying for a mortgage. Lenders are looking for steady, stable, secure individuals, so make sure that’s what your credit report makes you look like. Budget For Total Cost Of Ownership Many first-time homebuyers run into trouble because they underestimate the hidden costs associated with owning a home, like taxes, utilities, and HOA dues. Not to mention ongoing maintenance and upkeep. Give Your House The Fisheye Although it’s not what most people like to hear, you’ll make a better deal if you treat buying a home like an investment rather than the fulfillment of a life-long dream. With rose-colored glasses on, you’re far more likely to overlook problems that a more critical viewer would walk away from. Have a home inspection done. If it passes, have a land survey done, so that you know exactly where the property lines are (important for taxes and potential border disputes.) You will also want to look at the total package by spending time in the neighborhood at different times of the day. You’ll want to talk to the neighbors and hear about any neighborhood issues before you buy, not after. You’re making a big decision here, so take your time and do the legwork. Buying a home can be a great investment and a fulfilling decision, but only if you take precautions. We hope this article helps you on this journey!