New Home Buying Tips

8 Tips in Buying a New Home

Everybody needs a guide in doing things, particularly when it comes to buying a new home. Buying a home is not just as easy as buying pancakes at a bakery or a cafÈ. There are a lot of other things to think about when you find the house design and place that suit your preferences.

To have a better view of what you should do before buying a new home, here are some tips for you to consider:

1. Get a trusted Buyerís Agent. You might need one since these people can help you find what you need and they support your interests as well. Their commissions are paid by the seller, so there is nothing to worry about. You should find an agent that you can trust and feel comfortable with.
2. Check if you are qualified. You may do this by asking your agent to verify your credit reports if there are any errors and if your income is enough for the loan process. You can also identify your loan limit and choose the mortgage type that is easier for you to pay and fully understand respectively. You may get preapproved or prequalified by requesting for a loan preapproval letter and ordering a free credit report.
3. Start looking for houses on sale. The agent you hire now starts doing his job by going out and looking around for places you prefer in buying your house. He can present you various houses on sale, like short sales, fixer-uppers, overpriced homes but have longer ìdays on marketî, foreclosures, and REOs.
4. Make a written purchase offer. Let the seller know your terms and the home price you think the seller might approve. You may ask for some advice from the agent by validating the price offer.
5. Continue the negotiation. You may expect that after knowing your price offer, the seller can give you a counter offer. He might want it full price, but you can still negotiate by giving him enough reason why he should give you a discount.
6. Deposit an earnest money check. This should not be payable to the seller but to the right party, and must be returned to you should you decide to cancel the contract.
7. Have the house inspected. Hire a trusted home inspector and go with him during the walk-in with your checklist. If you find things that need immediate attention, like the need to repair some areas in the house, you may inform the seller about them.
8. When you are fully satisfied with the house, close the deal by signing the contract and deposit the required payment.