Ten Tips on Buying a New Home

Buying a home can be a very traumatic experience, but it also can be the best time of your life if you follow a plan. There is no “right” time to buy, any more than there is a right time to sell. If you find a home now, do not try to second-guess the interest rates or the housing market by waiting. Changes do not usually occur fast enough to make that much difference in price - and a good home will not stay on the market long.

1. Be picky, but do not be unrealistic. There is no perfect home.
2. Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.
3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and your closing costs.
4. Do not wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.
5. Do not ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.
6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?
7. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as type of mortgage terms that suit you best.
8. Do not let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.
9. Do not be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.
10. Get help. Consider hiring a REALTOR® as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And often, buyer’s reps are paid out of the seller’s commission payment.

Unfortunately, no house is ever perfect, even if you would decide to build one yourself. You need to focus on the things that are most important to you and let the minor ones go. 

Have fun and happy house hunting!