December and New Year’s Day give you the perfect occasion to buy real estate. Not only can you pick up a bargain property from a motivated seller, you can save on your purchase expenses.1. Home
Home Buyer Tips
1. Get pre-approved! Being pre-approved gives you buying power because when your offer is submitted, the seller knows you already qualify to buy their home. This also gives you an idea of what you can afford. These things save everybody time and effort by not wasting time on homes out of your price range.
2. Don’t move money around! It is critical to keep your spending to a minimum during the home buying process. Big deposit/withdrawals should be avoided for approximately 3 to 6 months before buying a home. Lenders will look deep into your finances. A change in your credit score, big purchases or deposits without a known source will throw red flags for the lender and can cause problems for you while trying to get a loan.
3. Take care of your credit! Know what can hurt and what can help your credit, you need to have a score of at least a 620 for a home loan the better your credit the better interest rates you can get. Don’t make any credit inquires on car loans, new credit cards and so on. If you need to work on your credit here are couple tips.
4. Make a list! Make a list separating your wants and needs, perhaps make a check list. This will help you look logically and not emotionally at a home to decide where it meets all your needs.
5. Know what you can change! Know what things you can change (e.g. paint color, flooring or landscaping) and know what you cannot change (e.g. the view or location of the home). Don’t discard a house just because you don’t like the colors or the carpet is dirty and don’t choose a house because it has the best colors or is just clean.
6. Get yourself an agent! Don’t buy a home with out an agent, their services are usually paid by the home seller and free to you. They look out for your best interest, open doors and write up the contract for you. Find out more about what a buyers agent does and how they help you here.