Buying a home is a great step for you and your family but also a large financial commitment. When purchasing a home, how do you know you’re getting the best deal? How do you know that agent isn’t taking advantage of you and your money? How do you know that this house is a good investment?
All of these thoughts and fears are normal, but the best thing to know is that you’re not alone in this. You have a team of individuals involved in the buying process. Often, deals will include a closing agent, a real estate attorney, a real estate agent, and us, a mortgage loan officer. While it’s a team effort with everyone to make the deal happen, there are key things that you as a home buyer can keep in mind to give you an edge in the deal process as well.
Be Open to Negotiation
You won’t find out if you don’t ask. This rule in life also applies to negotiating on your home price. If you accept the first price that the real estate agent listing the house offers, you probably are taking the high end. Keep in mind that they are motivated to get the house sold, maybe even desperate to get it off the market. Make sure they aren’t too desperate, as that could be a red flag for the house as a whole. However, the housing market has so many homes available at any given moment, you could find another one.
Follow Your Budget
While negotiation is recommended, it’s far more important to stick to the house that fits your budget at every step of the process. The price tag on the home paints a good picture, but not quite the full extent of costs. As you close on a home, there will be additional closing costs that must be factored. When moving in, there will be plenty of costs associated such as hiring movers, new furniture, appliances, and updating cosmetic aspects. Plus, even after moving in, there could be unexpected costs that arise such as a broken washing machine or oven.
Know Your Programs & Resources
There are plenty of programs and resources available to assist home buyers. Some of the most popular mortgage options include:
- Conventional Loans: Loans with multiple down payment options
- Federal Housing Administration (FHA) Loans: Designed to help those with lower credit scores
- Veterans Affairs (VA) Loans: Favorable loan conditions designed for veterans and their spouses
Before you tour your dream house, you need to show that you have what it takes to purchase said house. This means coming to a mortgage lender, like our team at Chris Doering Mortgage, to work out the details. Our pre-approval process requires a formal credit check, review of financial documents and income, and underwriting the potential loan. With all of this information, you’ll walk away with a good sense of what’s the low, high, and comfortable zone of your house budget.
Coming to an open house prequalified lets the real estate agent know that you’re serious about your shopping and that you are a real option for the house.
We’re Here to Help
It’s important that you feel well-equipped to take on the home buying process, but our team is here to help you every step of the way. Whether you need to be pre-qualified or want to discuss the best loan type for you, get in touch with us to learn more.