Finances
You should start by trying to get a full picture of your current credit. Get copies of your credit report, double-check the facts on it, and correct any problems you might find. Then, find a suitable lender and get pre-approved for your loan. This will put you in the beneficial position of being able to make a serious offer when you fall in love with a house.
Affordable Options
Just like engagement rings, there’s a general rule of thumb for how much you should spend on a home. This is just a starting point, but it gives you an idea of the price range you might want to look at. That rule is two and a half times your annual salary. There are also many tools and calculators available online to help you understand how your debt, income, and expenses will affect what is affordable for you. Here’s one. Also, don’t forget that the listing price is only the beginning. Property taxes and energy costs are just a couple of the expenses hiding behind the listing price.
Hire A Pro
The internet has gives buyers unprecedented access to listings and home buying resources, but there are too many aspects of the buying process that require a certain level of expertise. This is why it’s better to hire a professional agent rather than going in alone. Try to recruit an exclusive buyer agent who you trust to have your interests at heart and who can help you with effective bidding strategies.
Do Some Homework
So, you found a home you love. Before you actually make your offer, do some research on the current market as a whole. Is it more favorable to buyers or sellers? Look at the sales trends of homes similar to the one you’re interested in that are located in your area. Look at the price changes over the past few months and come up with an offer that’s competitive, but realistic. You want to get a good deal but you don’t want to tick off the seller.
Think Long Term
You probably don’t want to buy unless you’re planning on staying put for a few years. Look into the schools in the neighborhood, even if you don’t have kids. This can be a big factor in your selling price a few years down the line. Also, don’t forget to hire your own home inspector who can take a detailed look at the home and warn you of any near-future costly repairs.
It’s only a start, but now you’re armed with a little bit of knowledge as you enter the process of buying your new home!
As proud members of the esteemed, small-knit Eden Prairie small business community, we are active participants in everything our area has to offer. Since 1995, we’ve been committed to earning the trust of our community. With over 4,500 homes sold in our region, we have the knowledge and experience you need when you are looking to list or buy a home in Eden Prairie. Give us a call today and experience for yourself how we became the #1 sales team in Eden Prairie.