The 8 Best Kept Home Buying Secrets

Becoming a new homeowner is no easy task for anyone, especially for young adults or those with no experience handling such purchases. If you rush through this multi-step, long-term purchase deciding on the actual value of the home you can afford, fixing up the building, and saving for the down payment can be a costly mistake. Long before you even think about hiring a real estate professional and beginning the home search process, you need to ensure you have all the right information at your fingertips.

The 8 Best Kept Home Buying Secrets

If you intend to buy a home, here are a few secrets that will help ease the path to homeownership.

Secret 1: Keep Your Money in One Place

Avoid making any huge purchases or moving your money a few months preferably, six months before purchasing a house. It is not wise to take big risks with your credit profile. Lenders will see you as reliable and require a paper trail so they can give you the best loan possible.

Secret 2: Get Pre-Approved for a Home Loan

Getting pre-approved for your home loan means that your lender has taken into consideration all your financial information and they are willing to inform you how much you can afford and what they can lend to you. Becoming pre-approved will help save lots of energy and time so you do not have to run around looking at houses you will probably not be in a position to afford. This is also a chance to go around and shop for the best interest rates possible. 

You can also ask if your lender offers alternative options like USDA financing, which is a loan option that is backed by the government. If you are eligible to choose this option, the lender would be less prone to risk, and you would be able to avail of a loan that has excellent interest rates and finance your home purchase for up to 100% of the price.

Carry out thorough research to find out more about the processing fees and ensure that there are no hidden costs in the loan you are about to get.

Secret 3: Avoid Border Disputes

It is critical that you have a survey of the property done so you know what exactly you are buying into. Knowing the property lines will save you from getting involved in potential border disputes with neighbors. Also, the property tax you will pay is based on your property’s size, so it is important to have an accurate map done.

Secret 4: Do Not Time the Market

Obsessing with trying to time the real estate market to figure out when is the best time to buy is an effort into futility. The best time to invest in a home is when you find that perfect house and can afford it. Real estate is a cyclical market that goes up, down, and back up again. So if you are trying to find that perfect time slot, you will probably miss out altogether.

Secret 5: Bigger is Not Always the Best

The biggest, most splendid house on the block gets the most attention. However, bigger is usually not better when it comes to buying a home. A larger house appeals to a small audience and you do not want to limit your number of potential buyers should you decide to re-sell.

Secret 6: Beware of Sleeper Costs

The biggest difference between owning and renting a home is sleeper costs. While most people are focusing on mortgage payments, they forget that there are other associated expenses like property taxes, homeowner association dues and utilities. As a new homeowner, it is critical that you financially prepare yourself for potential property-tax increases, maintenance, and repairs. Ensure your budget caters for sleeper costs so you are covered and will not lose your house.

Secret 7: You Are Making a Purchase

Purchasing a house should not be something you do emotionally. When you fall in love with a house, you are probably going to make some pretty big financial mistakes. You should be aware that there is a world of difference between your emotions and instincts. Instincts will tell you that you are getting a great home for a great price. On the other hand, emotions will see you obsessing over the backyard or paint color. Remember, you are making an investment, be wise and stay calm.

Secret 8: Inspect the House

Will you buy a car without taking a peek at its engine? You most likely will not. Hire a home inspector, and you will probably save thousands of ringgits in the process. The home inspector will provide you with critical information that will help you make an informed decision on whether you should go ahead with the purchase. If the inspector finds major issues with the house, you can use this information to bargain for a lower price. It is wiser to spend a relatively small amount of money on the home inspection, rather than spending a fortune in the future.

Conclusion

Use these secrets to get the most out of your money when searching for a Bukit Indah home on sites like Property Guru. Remember, if you are going to buy a home, then that should be a priority. This means that you need to sacrifice a little and live by a budget to achieve your dream of homeownership.