Buying a house can be a tedious process; however, proper preparation can make the process as smooth and stress-free as possible. PSCP has pulled together some useful tips inspired from CNN Money Essentials and MSN Real Estate to follow when you’re ready to find that dream house.
1. Strengthen your credit.
Make sure your credit history is as clean as possible. Get copies of your credit report and check the facts, addressing any issues you may discover. This will ensure that there won’t be any surprises when getting approved.
2. Know what you can afford
General rule of thumb is you can buy a house that is about two-and-a-half times your annual salary. There are tools online, such as Bankrate’s mortgage calculator or MSN Real Estate’s home affordability calculator, which can give you a good idea of how you income, debts and expenses will play into what you can really afford.
3. Get pre-approved.
This is important in order to save yourself the headache of looking at houses you can’t afford. It also saves time and puts you in a more serious position to make an offer when you find the right house.
4. Look for districts with good schools.
This is applicable even if you don’t have children in school. If and when the time comes to sell, homes in desirable school districts have higher property values and are a top priority for many home buyers.
5. Professional help is the best help.
The internet may seem like all the help you need, but you are better off using a professional. The right agent will keep your interests at heart, showing you homes the internet may have not presented and can greatly help with the bidding process.
6. Pay attention to extra costs.
It is important to know how much you will be paying in closing costs and to calculate them into your budget. In addition, hire a home inspector with experience in doing home surveys in the area. They will be able to identify potential problems that may require extra costs in the future.
