Buying A House

21 Oct 5 Tips To Buying a House

1. Have a Checklist

Wether you are a first time homebuyer or an experience owner, keeping organized while buying a house is very important. Keep a checklist with all the necessary steps you will be needing to take in order to complete your home buying process.

2. Tighten up your Credit Score

Unless you will be paying all cash for your house, getting pre qualified is the first step in buying a house and your credit score plays a vital role when getting qualified. If you have any ongoing credit issues, resolveĀ them before buying a house. This will make the pre qualification process much easier, and you will be able to qualify for a better loan.

3. Debt-to-Income Ratio

What is a debt-to-income ratio? A debt-to-income ratio is the amount of money you owe every month wether it’s rent, car payment, car insurance, etc. divided by your monthly income. The lower the ratio the better chance you will have on qualifying for a better loan as it minimizes the risk of delinquent payments. If you can pay something off before buying a house, it can sometimes greatly benefit you by doing so.

4. Get Pre-Qualified

I have had countless times where someone who is looking to buy a house come up to me and ask me to help them in the process by showing them homes in the X-Y price range but then later find out that the home is out of their budget. The solution to this, is to get pre-qualified before looking at houses. Not only will this save you from being shot down the day you find out you can’t buy your dream home because you can’t qualify for a loan but it will save everyone a lot of time and energy in the process of you buying a house.

5. Find a local realtor

Shop around for the perfect realtor that fits all your needs and wants. Does he specialize in the area you are looking to buy in? Does he have access to off-market properties? What kind of relationships does he have with other realtors? Is he in good standing with his Realtor Association? The amount of times I have seen buyers go out and try to buy homes on their own thinking they will be able to get a “better deal” but then I see them end up overpaying in a bad pocket of homes that will likely never appreciate the value of their home. Houses are most likely the largest investment someone will ever make and having an expert by your side, guiding you, and providing you with valuable information is key when buying a house. Not to mention, when someone falls in love with a home they get emotionally attached to it and end up overpaying. Be honest with your realtor and tell them what you are willing to spend for the home. Let the realtor be the expert he is in negotiation and get you the best deal possibly when buying a house.

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