Sumathi Narayanan Realty's Blog
As incredible the act of purchasing a home is, many buyers end up regretting their purchase. There’s a variety of reasons for this. It all comes down to being ill-informed about buying a home and the type of home needed for the most liable situation. Read on to find out some of the biggest regrets home buyers face and how to avoid them.
Buying Too Small Of A Home
The most prominent regret that many buyers face is not buying a larger property. Many people want to live in a specific location or type of home that they overlook the size altogether. One reason that people end up buying a home that’s the wrong size is that they rush to find a property in a particular area. If you branch out on your search, you’ll have a better shot at finding the right size home. The area might not matter as much as the space you’re living in, s keep that in mind.
Not Doing Your Research
People tend to skip out on the research phase of buying a home. It’s critical that buyers understand things like mortgage rates, fees, credit reports, how much needs to be saved, and more. There are so many things that go into buying a home that you could easily miss out on something if you don’t know what you’re in for ahead of time.
Not Saving Enough
Your home will be one of the largest purchases you make in your entire life. There is a lot more to the cost than just the monthly mortgage payment. You’ll need a lot of money upfront when you buy a home including a downpayment along with other closing costs and fees. Plus, you’ll need to set some money aside for any repairs or replacements you need to do in the home once you move in. It’s also a good idea to have an emergency fund available just in case. Life happens, and you don’t want your savings to be depleted because you bought a house.
Keep in mind that the bigger of a downpayment you make, the better off you’ll be. Even if you can buy a home with a low downpayment, you want to put down as much as possible. A higher downpayment will keep your mortgage payments lower, get you a better rate, and you may even be able to avoid paying for PMI (private mortgage insurance.) Aim to save a 20 percent down payment for the most optimal mortgage situation.
Purchasing a house should be an unforgettable journey for all the right reasons. However, problems sometimes may arise that can make it tough to enjoy a positive homebuying experience.
Whether it's struggling to know where to search for your dream home or getting the financing you need to purchase a house, myriad problems may prevent you from enjoying a positive homebuying experience. Lucky for you, we're here to help you identify potential homebuying hurdles and eliminate such problems before they escalate.
Now, let's take a look at three tips to help you reap the benefits of a positive homebuying experience.
1. Enter the Housing Market with Clear Expectations
If you know you want to purchase a house, it helps to enter the real estate market with clear expectations. That way, you'll be better equipped than ever before to streamline your house search.
Consider what you want to find in your dream house. For example, if you want to own a house near the beach, you should conduct your home search accordingly. Or, if you want to buy a home with a big backyard and outdoor swimming pool, you can hone your home search as needed.
Think about areas where you want to reside too. By doing so, you can focus on available homes in specific cities and towns.
2. Know Your Homebuying Budget
Get pre-approved for a mortgage – you'll be glad you did. Because if you have a mortgage at your disposal, you can pursue houses in a specific price range and speed up your home search.
Obtaining a mortgage can be simple. In fact, if you meet with a variety of banks and credit unions, you may be able to get a mortgage in no time at all.
Remember, banks and credit unions employ knowledgeable mortgage specialists who are happy to assist you in any way possible. If you have any mortgage questions, these specialists can respond to your queries. And as a result, you can gain the insights you need to get a mortgage that matches your finances.
3. Employ a Real Estate Agent
A real estate agent is a difference-maker, particularly for a homebuyer who wants to seamlessly navigate the property buying journey. With a real estate agent at your side, you can achieve the best-possible results, regardless of where and when you're searching for a home.
Typically, a real estate agent will meet with you, learn about your homebuying expectations and help you map out a property buying strategy. This housing market professional can offer expert insights into the local real estate market and ensure you can pursue houses that match your expectations. Plus, a real estate agent will set up home showings, help you submit an offer to purchase your dream house and negotiate with a seller's agent on your behalf. And if you ever have concerns during the homebuying journey, a real estate agent will address them immediately.
Ready to enjoy a positive homebuying experience? Use the aforementioned tips, and you can quickly and effortlessly navigate the homebuying journey.
Before you even start the home search, research is key. There are a few areas that you should look closely at in every home that you’re touring in order to make an informed decision about each property and your future in it.
Check The Foundation
When you’re walking around the home, note creaky floors, cracks in the walls, and water drainage issues. Maybe you won’t even be able to see if the foundation has any cracks in it or not with your own two eyes. A certified home inspector will, however, be able to tell you what is happening on the property. Cracks in the foundation or major foundational damage can be incredibly costly to you as a homeowner. You’re going to want to know about these issues ahead of time.
Do Some Investigating
Taking a walk around your desired neighborhood can give you a lot of valuable information. You may be able to talk to neighbors who will give you a bit of information about a property. Even wandering around the neighborhood or attending yard sales can help you to see what’s going on, if you can see yourself living there, and if there are any major issues that you should be aware of.
Sellers prefer to sell a home to a buyer who they like. if you see that you have something in common with the seller like the fact that you’re both veterans, you should send a letter along with your offer to let the seller know your connection. It’s also helpful to send an offer letter that lets the seller know how much you love the house and that you can see yourself living in the home. It never hurts to add a personal touch to a home offer.
Keep Your Options Open
Just because a home doesn’t consist of the modern decor you picture yourself living in, doesn’t mean it can’t be changed. If a home happens to be older with less present-day decor in it, be sure to keep an open mind as to the potential that the home has for you.
Make A Strategic Offer
We know that prices that end in 9 are a bit more attractive to the psyche than prices that end in a flat zero. If the asking price for a home is $310,000, you may be tempted to offer $320,000 to shell out the competition, but you may be better off offering an odd number like $312,000. Sometimes a small difference makes a big impact in the eyes of the buyer. Work with your realtor to see if a home you’re interested in has any other offers. Your agent can help you to find a good price point for your offer as well.
Your credit score can play a major role in your ability to get the financing that you need to buy a house. As such, you'll want to do everything possible to improve your credit score before you enter the real estate market.
Now, let's take a look at three quick, easy ways to boost your credit score.
1. Pay Off Debt As Quickly As Possible
Get a copy of your credit report from each of the three credit reporting bureaus (Equifax, Experian and TransUnion). You are entitled to one free copy of your credit report annually from each credit reporting bureau, and you should take advantage of this perk so that you can learn about your outstanding debt.
If you have lots of outstanding debt, you'll want to start paying this off as quickly as possible. Because the less debt that you have, the more likely it becomes that you can get a favorable mortgage from a credit union or bank.
Don't wait to begin paying off outstanding debt. If you pay off even a small portion of your outstanding debt regularly, you can move closer to getting the financing that you need to acquire a terrific house.
2. Avoid New Credit Cards
A low credit score can be worrisome, and it may cause you to consider a variety of options to manage outstanding debt. However, if your credit score is low, there is no need to take out additional credit cards.
New credit cards may seem like viable short-term options to help you cover various expenses while you pay off assorted outstanding debt. But these cards are unlikely to help you resolve the biggest problem – paying off your outstanding debt to bolster your credit score.
Instead of signing up for new credit cards, it often helps to cut back on non-essential bills. For instance, if you don't need cable, you may be able to eliminate this expense and use the money that you save to pay off outstanding debt. Or, if you have first-rate items that you don't need, you may want to sell these items and use the profits to pay off myriad bills.
3. Keep Your Credit Card Balances Low
Once you have paid off your outstanding debt, you'll want to keep your credit card balances low.
It often helps to have one credit card that you can use in emergencies. If you keep one credit card and get rid of any others, you may be better equipped than ever before to maintain a high credit score.
Lastly, if you require additional assistance as you prepare to kick off a home search, you may want to work with a real estate agent. This housing market professional can help you narrow your home search to residences that fall within a specific price range. That way, you can avoid the risk of spending too much to acquire a house.
Increase your credit score – use the aforementioned tips, and you can raise your credit score before you launch a home search.
Looking to buy a house without having to break your budget? Put together a homebuying roadmap, and you can increase your chances of finding a top-notch house that falls within your price range.
Ultimately, there are many things to consider as you put together a homebuying roadmap, such as:
1. Your Dream Home Definition
Differentiate your dream home must-haves from your wants – you'll be glad you did. If you can determine exactly what you want to find in your dream house, you can narrow your home search accordingly.
For example, if you need a home with multiple bedrooms to accommodate your entire family, you should include this information near the top of your homebuying roadmap. You then can kick off a search of multi-bedroom homes and move closer to finding your ideal residence.
2. Where You Want to Live
Do you enjoy life in the big city? Or, would you prefer to settle down in a small town? Think about where you would like to call home so that you can effectively plan your homebuying journey.
Ideally, you should try to refine your home search to a small collection of cities and towns. This will enable you to speed up your home search and ensure you can find a house that suits you perfectly.
Keep in mind your day-to-day activities as you consider where you want to live too. For instance, if you work in the city, you may want to pursue houses in or near the city itself. On the other hand, you may be able to purchase a small town home for less than what you would have to pay for a city residence and commute into the city for work.
3. Your Homebuying Timeline
Determine how quickly you'd like to finalize a home purchase. That way, you can map out exactly how you want to approach the housing market.
If you are committed to buying a house as soon as possible, you'll need to be proactive. The top houses sell quickly, and if you don't act fast, you risk missing out on your dream residence to a rival homebuyer.
Conversely, if you can afford to be patient, you can avoid pressure throughout the homebuying process. In this scenario, you can pursue houses at your convenience. And once you find the right home, you can submit an offer and finalize your home purchase.
When it comes to creating a homebuying roadmap, it generally helps to get support from a real estate agent. In fact, this housing market professional can provide plenty of assistance throughout the homebuying journey.
A real estate agent will learn about your homebuying goals and help you develop a successful homebuying roadmap. Furthermore, he or she can keep you up to date about new homes as they become available and make it easy to discover a wonderful residence at a budget-friendly price.
Ready to get started on the process of purchasing a house? Consider the aforementioned items as you create a homebuying roadmap, and you can plan a successful homebuying journey.