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Investing time upfront to find the right people to work with and steps to take will make the home-buying process a breeze. Here are five steps we highly recommend taking. You’ll be glad you did.
1. Find a true home-buying adviser. This person will be looking out for you and puts your best interest ahead of getting you into a home quickly. An agent will ultimately save you time. This trusted adviser will also build a strategy so that you won't have to do the work, they will do it for you.
2. Get preapproved with a lender. If you take this step, the seller may take your offer more seriously than an offer from another prospective buyer who has not met with a loan officer. By speaking with a mortgage lender, you’ll find out your finance options, which include several loan programs with different rates and mortgage insurance. It will also allow you to figure out a general price range so you end up with a payment you are comfortable with. Before you decide on how much you want to spend, be sure to think about what type of lifestyle you want to lead. Only you know how much you will feel comfortable borrowing, but keep in mind you want to be able to still go to the mall and out to eat as well. Remember, a general rule of thumb is to borrow no more than 28% of your pre-tax income. The 28% represents your house payment, taxes and insurance. If you have debt, such as student and car loans, this number should not go above 36%.
3. Do a home inspection. These professionals can inspect the home and do other inspections, whether it’s looking for termites, checking a septic tank, surveying to mark property lines. Hiring an inspector is the single most important initial investment you’re going to make into the home-buying process. It’s all about information. Make sure you have an inspector who’s not afraid to get down and dirty: crawl in tight areas, look at the foundation, dig into places in the home you might not see with the naked eye. The bottom line? Getting a home inspection is a very, very good investment. You’ll have all the information you need to move forward to negotiate repairs or walk away. Either way, you save yourself a lot of time and money if you know exactly what the house needs.
4. Get title insurance. Although you have clear title when you purchase the property, the title insurance protects your interests in the title in the event something arises later. It’s a one-time fee, but you’re covered as long as you own the property. It’s kind of like any other insurance: you probably won’t need it but you’ll be glad you bought it.
5. Consider a home warranty. People have very different opinions on warranties—they love them or they hate them. A warranty limits your risk in case something breaks down or needs replacing.
Give me a call so I can tell you where to be positioned and how to be successful in this market. Please contact me at (706) 621-6085 or visit justinwoodall.com. We’d be happy to assist you.
