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Top 10 Tips When Buying a Home

10-tips

  1. You should remain in the house that you have bought for at least a few years. Given the transaction costs of buying a home, you may end up losing money if you sell sooner, even in a rising market.
  2. Make sure your credit history is as clean as possible. Make sure the facts are correct and any problems that you discover are fixed at least a few months in advance.
  3. Buy a home that you can afford. A good rule of thumb is to purchase a home about two and one half times that of your annual salary.
  4. If you cannot put down 20%, you may still qualify for a loan. If you qualify, there are a variety of public and private lenders who offer low interest mortgages with a small down payment.
  5. Strong school districts are top priority for many home buyers. Living in a good school district will boost property sales when it comes time to sell your home.
  6. Use an agent when it comes time to purchase your home. A good agent will have your best interests at heart and can help you with negotiating strategies.
  7. Points vs. Rates – choose wisely. Usually you have the option of paying additional points at closing in order to create a lower interest rate. If you stay in the house for more than 5 years, it’s usually a better deal buy down the rate.
  8. Get pre-approved by a good lender before you begin house hunting. This will prevent you from looking at homes that you cannot afford.
  9. Your bid on a house should be based on the sales trend of similar houses in the area. Your agent will prove invaluable in educating you about the local market.
  10. Hire a professional home inspector.