Buying a home today has become an even harder process because of the lack of homes for sale. Unless you are an industry insider it’s hard to know the important details that will make this a smoother transaction. Here are 4 tips that will give you a buying edge.
1. What can you really afford?
When qualifying for a mortgage that lender will not take into account your car insurance, utility bills and or general living costs. You need to write down all your expenses and then decide what payment you can afford monthly for housing. Use that payment to determine the loan amount you will take.
2.Know the Hidden Costs
What are the costs that you would not expect that can be very costly? A great example is how expensive are the utility bills. Heating and cooling costs of a larger home can add to your bottom line. Ask your agent to obtain copies of recent utility bills from the sellers so that you can understand these expenses and add them to your monthly budget.
3. Your new property’s work history
Any work that was completed on your potential home would have required a permit. These permits will show on the property’s title report. It’s great to read through them to understand the extent of construction that was done and what may need to be completed. The work may have been completed without permits which can be a major red flag and could cause issued in the future.
4. What is your exit strategy?
As a buyer you may only want the home until children are out of school or you are finished with a certain phase of your career. So, what are the steps you will take to sell the home and maximize your investment. Specific home improvements that are more expensive such as home extensions, new landscaping and/or pool and backyard upgrades should be looked at as long-term projects that will help you get more value when you are ready to exit.