How To Buy A Home The Smart Way
1. Be financially secure before making an offer. You will have more chances of getting the home you are interested in if, at the time you're making your offer, you are already pre-approved for a mortgage and if financing is not a condition of your offer. It is often the case that, on the competitive market, sellers prefer unconditional offers. Some will even choose lower offers if the commitment behind them is firm
2. Don't go over your limit. You may simply fall in love with a home, but if you have a spending limit, make sure you respect it. In case you need a reminder, write that number down. If it is difficult for you not to get emotionally involved, you may forget your limit and eventually pay much more than you had planned initially.
3. Use a home inspector. Make sure you know everything about the house you want to buy before you sign the contract. A very old, stylish house may have a lot of hidden problems, so make a firm offer only if you're allowed to have a home inspector look at it. The seller should cover the cost of additional repairs or lower the price he expects to get for the house. If the seller doesn't agree to do this, don't forget to add repair costs to your mortgage.
4. Plan your expenses beyond the down payment. You will need more money on top of the down payment for the house. So remember to add the moving and closing costs, which can reach six percent of your mortgage. You should check your Good Faith Estimate through your lender or mortgage broker. REALTORS® can also suggest lists of other expenses you may have to meet.
5. Arrange the same date for moving out and moving in. The ideal situation is one where you can synchronize the moving and closing dates so that you can leave your former home and move in your new one on the same day. If you cannot achieve this, then short-term rental or staying with friends or family is probably the way to go. Moving twice is certainly not a solution.
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