Written by RE/MAX
Whether you've spent years saving and preparing to buy a home, or are
unsure if you can afford it, the questions surrounding a house purchase
can feel endless. You can find the answers - and peace of mind - by working
with RE/MAX, the industry leader in experience and service.
Here are some tips to help you become your own landlord.
Hire a real estate professional.
An important first step is selecting a professional to help you find your dream
home and fine-tune your financial expectations. Working with a buyer’s
agent is worth consideration because he or she is legally responsible for
representing the buyer’s interest in a real estate transaction. Before
making a decision, however, have a Realtor explain the pros and cons of using
a buyer’s agent versus a sales or dual agent. Your RE/MAX Associate
can guide you through every step of buying a home.
Shop for mortgage rates and terms.
A difference of even half a percentage point can mean a considerable savings
over the life of a loan. For example, the difference in the monthly payment
on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month.
Over 30 years, that's $12,600.
Prequalify for a loan.
Also early on, you’ll want to get prequalified for a mortgage loan, which
determines how much you can afford. It allows you to move swiftly when you
find the right home, especially when there are other interested buyers. It
also indicates to the seller that you are serious and can afford to buy the
property.
Outline what you want.
The next step is to create a realistic idea of the property you'd like to buy.
What features are most important to you? Make two lists: one of the items you
can't live without and one of the features you would enjoy. Refine the lists
as you house hunt. It is also helpful to search online to see what is currently
available on the market. Your real estate professional can then show you houses
that meet your expectations.
Visit properties.
Now you’re ready to visit houses. Ask your RE/MAX Associate to arrange
showings, and be sure to keep track of the properties you’ve seen. Each
time you venture out to see more properties, revisit your notes to immediately
eliminate any that clearly do not meet your standards.
Know the features that help or hurt resale.
In some areas, a swimming pool actually detracts from a home's value and makes
it harder to sell. In neighborhoods with two-car, attached garages, a single-car
or detached garage may affect the home sale and future value. Your RE/MAX professional
can point out features that hurt or help resale value.
Rate the houses you tour.
After touring each home, write down what you liked and didn’t like. Develop
a rating system that will help narrow the field. For example, pick the house
you like best on day one and compare all other houses to it. When you find
a better one, use the new favorite as the standard. Avoid trying to track more
than four top choices at any given time since this can quickly become overwhelming.
Make an offer.
Once you’ve pinpointed your dream house, it’s time to get serious
about the financial and contractual side of the purchase. Let your RE/MAX Associate
guide you through this sensitive process. Because you and the seller have different
goals, rely on your RE/MAX agent’s experience and expertise can bring
order and calm to the process – and help both parties reach a favorable
outcome.
Arrange for a home inspection.
After your offer is accepted, set up a home inspection. It's common to find
problems, including leaky roofs, cracked walls, insect infestations and foundation
problems. Your real estate professional can help find a reputable inspector,
and will negotiate to get you the most for your money once the inspector's
report is final. If you negotiate repairs as part of the purchase, ask for
a "walk through" before finalizing the paperwork. Ask your real estate
expert about home protection plans, which may save you money in the near future.
Close.
Before your closing date, make sure you’ve made all necessary deposits
and completed the paperwork – including mortgage, title, homeowners insurance
and any other paperwork required by local or state governments. Your RE/MAX
agent will be there to help you complete that closing checklist and avoid any
last-minute snags. You deserve to enjoy every moment of the homebuying process.
Prepare for life in your new home.
Before rolling out the welcome mat, consider some moving basics: arranging
for an alarm company, turning on electricity, water and gas, cleaning or replacing
the carpet, and notifying your local post office of your new address. The best
time for renovations is often before you move in.
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