It goes without saying that buying a home is going to be one of, if not the biggest financial decision you’ll ever make. It’s a dream for many people to find and live in their dream home.

Since it’s such a big purchase, there’s no room for fault, and it is not something you should leave up to trial and error. That’s why this brief read is meant for you so that you know the main factors to take into consideration when making your purchasing decision. 

Hiring a trusted realtor: If you’re going to hire a realtor, you want to make sure that person or company is a trusted source. Realtors get commissions, and buyers believe this hike up the overall cost of buying.

Having said this, potential buyers should know that the commission should only be paid by the seller, not the buyer. Typically, the fee is paid by the seller at the settlement table once the deal is made, where the fee is deducted from the procedures of the home sale.

Compare mortgage rates: Most of us can’t buy a home without a big loan, a loan as on a mortgage. According to the Consumer Financial Protection Bureau, when you compare the rates of at least three lenders, this can save you $3500 over the first five years of your loan. 

Buy the house you can afford: What does that actually mean? It’s about mortgage and can be understood in the form of a ration. Some lenders propose that you can manage to pay for mortgage payments with about 1/3 of your gross income, while others suggest 28% of housing related costs. These costs include mortgage, insurance and taxes. There are several factors, including your income, interest rates, type of mortgage, and the market that a mortgage broker can explain to you.

Look beyond the purchase price: The actual selling price is just one part of the purchase. There are other costs to look into. They can be insurance costs, real estate costs, home improvements, and maintenance costs. All this really adds up. A cheap home with high taxes can cost you more in the long run than an expensive property with low taxes. Make sure you’re looking at all the additions that go beyond the purchasing price. 

What is behind the paint? You’re going to have lots of brilliant ideas on how to decorate your new home. You know the wall paint has to go, but what is beyond that paint color that you don’t like? Is there water damage? Molding? What’s the state of the plumbing, wiring and the roof and insulation?

That’s not to say to drop your dream home if it needs a lot of restoration, but make sure that one of your ideas includes a full inspection of the house.  It’s a necessary step in the buying process because you don’t want to get stuck with a house that has structural problems, or pest problems and other major issues that were not mentioned by the sellers. 

Look beyond the house: Maybe the house needs some fixing but it’s your dream neighborhood. California home buyers at remind us that location is everything in real estate. So a house in disarray can still be a gem if in the right location. If you’re in a hurry to sell and just don’t have the time or mind to fix, you can find buyers who can afford to pay cash upfront for your home and deal with all the rest of the operational hassles in the background. 

Buy for tomorrow: Maybe you’re single now, but that might not be forever. Or maybe you’re childless only for now with plans for a family, or even retired and want to downsize your home. The changes that happen in the future are many. You won’t know what all those changes might be or when they’ll happen, but when you’re buying, don’t look just under your feet. 

The art of negotiation: There are standard contracts, but that doesn’t mean you have to agree to all the terms. Contracts are made to negotiate. It’s best to avoid making a very low offer on buying. When sellers see the initial buying price you put forth is too low, this can lead them to refuse to negotiate on anything further. 

Buy a home when you’re financially ready. And buy one because you want to be a homeowner, not because you’re at that age where people say you ‘should’ be owning a home by now. When you’re prepared and know pretty much what to expect, home ownership can be a wise long-term plan on your part.


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