You want a home to call your own, but when you set out to find one, you realize you don’t know how to buy real estate. It’s actually a pretty common problem; not everyone has been informed on how to find a place to call your own. Luckily The Kovacs Connection has got a bulletproof plan to get you the home of your dreams!
What Can You Afford?
Along with researching the styles of home that you like, neighborhoods that you would like to live in, and searching a bit to see what the market currently has to offer, you should decide what you can afford to spend.
It is often suggested that you look for homes no more than three to five times your annual household income, but that isn’t necessarily the best advice. Many people these days are starting their side projects, or even creating their businesses from the comfort of their home office.
This affords an opportunity for income growth, and often it is an exponential increase over time. Even those with a steady paycheck that are guaranteed to have future raises and promotions should also consider this fact when buying.
If you’re going to be in a much better position in the future than you are currently, you may not want to skimp on the home you purchase. This may be a little difficult to convince your bank when getting a loan, but that shouldn’t hinder you from trying.
This is also the time to figure out if you can get credit for a mortgage. Telling them of your situation, especially if there is a guarantee for future growth is important in getting approved. That being said, even a guarantee from you might not convince a bank seeing as things happen all the time.
Do not let this discourage you! You might have to go to several banks to get preapproved for credit for your mortgage, but these interactions are new lessons on how to buy real estate. You don’t take the first house you see, and you might not get the first bank to go to bat for you.
The process of purchasing a new home isn’t meant to be rushed especially for the first-time buyer. Our next tip, getting a mentor, will help you through the process.
Get A Realtor
Real estate agents should know how to buy real estate if you encounter one that doesn’t then kindly run the other direction! The seasoned realtor is like having your own personal mentor, at least for buying and selling homes.
When looking for a realtor, there are quite a few details to consider about them that will help you figure out if they’re the right man or woman for the job. Here are a few;
- They have some years of experience.
- Their clients speak highly of them.
- They are punctual in answering your calls/emails/and to meetings.
- They have a reliable professional network they use for buying and selling.
- You get along together.
They don’t have to have everything on the list, but we highly suggest that you find a realtor that has all five qualities because those that don’t aren’t going to be as successful as you want. On top of that, they will end up wasting your valuable time.
Get the House Checked Out by A Professional
Once you and your realtor find the home you see yourself in, it’s time to get it inspected and appraised. Anyone that skips these steps is in for a major headache down the road for two reasons.
First, you might be overpaying.
Second, you might be moving into an unsafe house.
The inspection will assure you that the home is safe. They will find out if the structure is sound, and in the event that they find it unfit, both you and the seller will know. This gives you the power to either negotiate the price or to have the seller fix repair the home before you close the sale.
If the inspection is passed, the appraisal will be your next best friend. It will be your last defense against overpaying for the property. The appraisal will give you and the seller a crystal clear idea of what the house is worth, and if you are paying a reasonable price, if the numbers are extremely off we suggest renegotiating the price.
If you don’t know how to buy real estate and want some help figuring out the system, please contact us calling us at 949-350-0146 or emailing us at Debrakovacs@cox.net or realestatebyrana@gmail.com and we can help you get started today!
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