The process of shopping for a new home can be nerve-wracking. Finding the right property, ensuring that financing is in place and completing the negotiation process can be difficult.
Here are five tips that can be used to ease the process of buying a home:
Getting pre-approved for a mortgage helps to set the budget when shopping for a home. Scheduling a visit with a financial institution can help to begin the pre-approval process. The documents required to apply for the mortgage include bank statements, proof of employment and identification.
Set the Budget
Setting the budget is not as simple as shopping in the range of the amount of the pre-approval. Take into account the price of the home with the cost of the monthly or bi-weekly payments that are going to be required for the mortgage. Finding a number that is affordable within the budget is essential but how much can you afford? Experts recommend spending a maximum of thirty five percent of the income on housing costs, with an average of twenty eight percent.
Choose a Location
It is likely that the city has been narrowed down, but to make shopping for a new home easier, it’s important to narrow down the community where the home is going to be purchased. This can decrease the search area by up to fifty percent; helping to reduce the amount of time spent looking for homes in the wrong area. Do not just say, “I want to look at real estate in Detroit, MI. Pick a community in the Detroit area that interests you. To search for homes by location, use the map search features that are available through MLS services, finding the right home that’s also in the right area.
Make a List
Make a list of the must-have and the nice-to-have features of the home. Making this list can help to narrow down the homes that are being considered. Some of the must-have items include a minimum number of bedrooms, minimum amount of living space and even a minimum number of bathrooms. Other features that are considered nice to have may include aesthetic features, or a large outdoor living space, walk-in closets or an office. Making a list of the features that are required in the home, as well as those that would be a bonus can help to narrow down the choice of homes available.
Choose the Right Real Estate Agent
Working with a real estate agent to buy a home isn’t necessary but it can help to reduce the leg-work while searching for a home. Real estate agents can provide the expertise needed to negotiate the price, plan for home inspections, and the knowledge that is required to complete the paperwork while submitting an offer. Working with a real estate agent can help to ease the entire process of buying a home and helps buyers to find the right home for their need.
Taking measures to reduce the stress of house hunting and reducing the stress of financing can be simple, following these five tips. Use them to reduce the stress that comes from your own process of buying a new home.