Avoid Paying Too Much!
The Home Buying Process
Whether you are buying your first home, or your fifth, or your last, the process of buying a home is a detailed, time-consuming venture. At the same time, it’s an emotional period laden with difficult and challenging choices. You want to ensure that the home you purchase meets your family’s needs now, and in the future.
Each of these decisions often involves money. When you consider all that money represents, you’ll want to ensure that you don’t pay too much. This article helps you become a savvy buyer, by pointing out some of the pitfalls inherent in the home-buying process. These include such things as knowing what you want before you begin shopping, taking your time to shop, choosing the right realtor, and remaining objective while viewing potential homes. With this information, you’ll be closer to finding your ideal home.
Develop a Needs vs. Wants list
Everyone has a picture of their ideal home. This would include all the features you not only need, but have long desired. However, when it comes time to buying a home, the desires often cost more than the needs. While it’s nice to think about having a beautifully landscaped backyard, or a solarium, perhaps even some built-in appliances, or a heated driveway, these are usually considered luxury items, which can add considerably to the price of your home.
That’s why it’s a good idea to develop a detailed needs and wants list. With this list, begin with items you really need like adequate space, garage and number of bedrooms. For most people, basic needs should be considered first. After that, you could consider additional desires, if you can manage these benefits financially. Working out what are needs and what are wants with your spouse or partner can be a challenge in itself. Be sure that you agree on the final list.
With such a list in your hands, and in your mind, you are less likely to be caught up in the excitement of the pursuit. You’ll have a good idea of what you want, within you price range, and you and your partner can decide if you can afford those additional items.
Get Pre-Approved Before Shopping
Visit your financial or lending institution prior to home buying. We can refer you to some good ones in the Denver area if you need. Quickly, you’ll know the amount of mortgage you’ll receive. Be sure to get a mortgage commitment in writing. Most importantly, you’ll tell sellers that you are a serious prospect. Depending upon market conditions, a seller may lean towards an unconditional offer. You’ll have less negotiating power if you have to wait for mortgage approval.
Banks and financial institutions have developed many programs especially for home buyers, including first-time buyers or those with equity in their current homes. When you review your needs and objectives with a lending officer, you’ll be one step closer to purchasing your home.
These are just some of the things to keep in mind when purchasing a home.