Secrets For Saving $$$ When Purchasing a Home
You Don't Make Money When You Sell a home, You Make Money When You BUY it!
Here are several strategies to consider when purchasing your next home.
Understand How Much Financing You Can Afford. It's crucial that you speak with several lenders and discuss the many financing programs available. Each mortgage company sets its own limits for some items. Be sure to shop and compare at least 2, preferably 3 lenders to find the best deal. You Realtor can provide you with lender names and help you sift through the many options.
Do Your Homework Before You Shop. Knowing what you can afford before you go shopping for your next home, can save you time and aggravation. It's always best to speak with a lender and do some preliminary homework, so you can have a pre-approval letter in hand when you make an offer. The pre-approval letter will put you in a much better position to negotiate the price and terms. So, before you head out to look at homes, be sure you know your comfort level regarding the price and monthly payment, and have that letter.
Location. Remember, you make money when you BUY a home, not when you SELL. By selecting a home in an area that continues to increase in value, has good curb appeal, and has attracting features, you're setting yourself up to be in a good position later. Now, you don't want to buy the most expensive home in the neighborhood, but you don't necessarily want to buy the lowest priced one either. Be sure to take into account all of the factors that might hinder the sale of your new home down the road. Your Realtor can help you determine the pros and cons , by doing a market analysis before you make the offer. This will show you what homes have sold for, how long homes are on the market and other factors.
Timing. Consider the length of time you plan to live in your new home. It takes about 3 years to be in a position to make money from the sale of your home. Unless you purchased the home at a drastic under market value price, or had a large down payment, you'll either break even when you sell or you could possible lose money. So, be sure to consider your future plans and length of time you plan to stay in your new home.
For a FREE Buyer Consultation to help you position yourself to purchase your next home, give us a call today.