Good Advice on Buying a Home

Good Advice On Buying A Home

We are generally still in a Buyer’s Market in the Tacoma area, so you are still working with pricing that is generally lower than normal.

In our area housing prices are beginning to rise, but slowly. Taking the opportunity to buy now is a definite positive move and by simply following a few tips you may find the entire process much easier.

While it sounds logical sometimes in the craziness of making this huge decision you forget to factor in a lot of “other” costs involved with owning a home. You’re going to want to factor in:

• Mortgage Payment
• Taxes
• Insurance
• Utilities
• Repairs and Maintenance
• Moving Costs

And any other miscellaneous living costs you may have that you need to make sure you budget in so you know what you can truly afford when buying a home. After you’ve determined your housing costs it’s time to factor in a budget for everyday and “surprise” items that come up.

• Groceries
• Credit Card Payments
• Entertainment Costs
• Transportation Costs to and from work/school
• Loan Payments (car loans, personal loans, etc.)
• Car Maintenance
• Clothing
• Family and School Related Costs
• Miscellaneous

Be Prepared

Before you even begin to start the buying process, do some footwork ahead of time to alleviate any surprises that could happen. Have a copy of your credit report sent to you and make sure it’s accurate. You do NOT have to pay for credit monitoring services in order to get your “free” credit report; contrary to what many websites offer. Use federally-sanctioned sources for free reports.

If your report doesn’t come up as good as you had hoped then consult a non-profit credit counselor or financial advisor as to how to repair your credit before you begin looking for a house. In some cases you can repair your credit in as little as 6 months to a year, depending upon the issues at hand.

Check out neighborhoods, crime reports from your local police station for areas you’re interested in (often available on their local online sites), and watch the sales in the area you’re interested in to see what prices the homes are selling for. Once you’re actually signed up with a Buyer’s Broker and find a home you’re interested in they can generate a CMA for you to do a comparison but for now know the areas you are interested in as well as possible.

Find A Good Broker

Hire a broker that you feel good about: Check their credentials, ask questions about their past, how long they’ve been in the business and even what awards they may have won throughout their careers. You can often look at their bios online to find out a substantial amount of information about the broker you’re hiring. Don’t always just accept the first broker that you come across and feel obligated because the broker is a friend or a friend of a friend.

If you don’t feel the connection, then continue to look for someone that fits your style. Don’t sign any papers until you feel comfortable that this is the broker that is right for you and listens to your needs. There’s nothing worse than working with a broker that doesn’t listen to what YOU want and instead pushes what they want to sell you.

If you’re telling them you only want a one story home and they’re constantly showing you great tri-levels or two story homes because they just know you’ll love it they’re simply not listening. They may have their own interests at heart and are trying to sell you homes that they’re going to profit best from instead of being concerned with what you want.

Don’t Be Rushed Into Buying

Take your time and don’t allow anyone to rush you into making your decision. If you feel pressured tell the people or person who is pressuring you to back off. This is a big purchase and you have to feel good about the move you’re about to make. Sometimes it can take a long time to find the right place while other times you can know within the first few homes you view that you’ve found “the one”.

You also want to be smart and know when it’s time to move on a house, especially if it’s a home that’s priced right and in great shape. If you’re afraid to move on a deal ask your broker how you can move towards purchasing the home but still have an option to back out with minimal or no damage up to a certain point.

Understand Your Mortgage Options

Ask your broker to help you understand the different types of mortgages out there and figure which ones are best for you. While not all types of mortgages are available to everyone, find out what is available to you and what option is best for your situation. Take the time to look up information about mortgages yourself either by contacting lenders and asking for pamphlets or speaking to a lender personally to discuss the types of mortgages face to face.

Read information online but only from sites that you can definitely trust to be accurate. Consider the source before you take the information as gospel because anyone can post anything online; that doesn’t necessarily make it “the truth” or factual.

Let Your Broker Do The Work For You

As tempting as it is to want to take over and be in charge, allow your broker to do the footwork for you. It is time consuming and complicated to have to search various sites, listings, and information to find the homes that fit your criteria; that’s what you have a broker for. You take care of life and let the broker do the work for you in finding the homes that meet your needs and desires.

Let them do the negotiating and use their knowledge to work to your benefit. It will make the entire ordeal a lot less stressful if you don’t feel as if you have to do it all yourself and be in control of everything. The reality is that you are in control and make the final decision; your realtor is simply there to help you and guide you.