7 Tips Before House Hunting

1. KNOW YOUR credit score

First things first: don’t go house shopping without getting a mortgage pre-qualification.

Have you found a house online you’re just dying to see? Don’t pull into the driveway until you’ve talked to a mortgage broker first.

There’s nothing worse than putting in an offer on your dream home, only to find out you don’t actually qualify to purchase it. That’s unnecessary frustration not only for you, but for the sellers and realtors as well.

Your credit score in particular is important because only two things determine the interest rate you get on your mortgage: the amount of your down payment and your credit score.

To check your free credit score now visit www.creditkarma.com it is fast and easy!

There’s nothing that will kill a sales contract faster than finding out you can’t qualify to buy a home. If you find out your credit isn’t up to par to buy a home, work on fixing it first, and put your house shopping on hold for a while.

Don’t panic — there will be plenty of homes available once you’re able to start your search again.

2. MAKE A BUDGET

You should decide ahead of time what amount you’re comfortable with paying per month for your mortgage. Then go to your bank for your pre-qualification letter.

Hopefully you already have a budget and know what will work for you and what won’t, but if you don’t, now is the perfect time to start one. It’s important to do before you have a mortgage payment.

A budget is important because by using one, you’ll always be aware of where your money is going. If you currently use one, then you’ll already have a good idea of how much you can comfortably afford.

3. FIND A DILIGENT REALTOR

The next step is finding a realtor who will work for you. You want someone who will stand up for you in the final walk-through or at the closing table if something doesn’t go right.

You also want someone who has lived in the area for a long time, who knows the market, and who is knowledgeable about the cost of home repairs and upgrades.

The best way to find someone who will work hard for you is to ask for recommendations from friends and family members. (The same rule applies to finding a reputable mortgage broker.) They’re making a lot of money off of you, so they should be in your corner at all times.

I’ve seen many bad realtors and many great realtors, so if your realtor isn’t working for you, find a new one. There’s not a shortage of realtors these days, so make sure you are happy with yours.

4. MAKE A LIST OF NEEDS, MUST-HAVES, AND WANTS

You may end up seeing so many properties your head will be left spinning. You might forget some of the things you were looking for in the first place.

Before you look at any houses, make a list of your needs, must-haves, and wants. This way, if you get overwhelmed after seeing too many homes, you can simply refer back to your list and remember what it is you’re looking for.

This will also be helpful for your realtor to reference as well.

5. CHOOSE YOUR LOCATION

It’s going to be really hard for your realtor to show you the best housing options for you if you don’t know the area you want to reside in. You’ll end up all over the place if you don’t.

If you aren’t sure about your specific location, spend some time in the areas you’re interested in at different times of the day to get a feel for the area. Good times to visit are rush hour times and nighttime.

6. SAVE AN EMERGENCY FUND

If you don’t have an emergency fund saved yet, buying a house isn’t a wise option.

Houses mean constant maintenance even if you buy new.

Don’t put yourself in this position and end up sinking. Save for emergencies.  

7. CHECK YOUR EMOTIONS AT THE DOOR

Buying a house is an emotional process, but do your best to keep your emotions out of it before you make a hasty and unwise decision about a house that’s financially out of your reach.

Buying a house is a business transaction so play it cool and keep your emotions in check. You’ll be thanking yourself later.