There is plenty to think about when you are buying a house. However, because of certain tips, the real act does not need to be stressful. Here are the ten best tips one should consider when buying a house.
Ten best tips on buying a house in Potomac MD
Tip #1: Do not buy if you cannot stay put
Owning is undoubtedly not for you if you cannot commit to staying in a single place for a few years. You are likely to lose money (even on a rising market) because you sell a house any sooner, and as a result of the transactions fees of buying homes for sale in potomac md. Moreover, it is an even worse proposal when prices are declining.
Tip #2: Begin by Shoring your Credit
Given that there is the likelihood of getting a mortgage for buying a house, you have to ensure that the history of your credit remain as clean as possible. Acquire copies of your credit card a few months prior to commence house hunting. Apart from ensuring that all facts are correct, fix any trouble you come across on your credit.
Tip #3: Aim for a house you can actually afford in Bethesda MD
The thumb rule is that you are able to purchase homes for sale in bethesda md, which runs nearly two-and-one-half times your yearly salary. To do this better, use one of the many calculators found online. They will help you get results that are more accurate on how your debts, expenses and income affect what you are able to afford.
Tip #4: Purchase in a district with good schools
This advice applies in most areas regardless of having school-age children. Reason: you will learn that powerful school districts are an important priority for several home buyers when it comes to time to sell, and this helps in promoting the property values.
Tip #5: Acquire professional help from a Professional in Georgetown DC
Although the internet provides buyers with unprecedented access to home listings for Georgetown homes for sale, a number of new buyers, as well as experienced ones, are comfortable using an official agent. Search for a potential buyer agent who is not only likely to cherish your interests but also assist you with strategies during the bidding procedure.
Tip #6: Choose cautiously between rate and points
Normally, you have the choice of paying additional points (A share of interest, which you pay at closing) when it comes to picking a mortgage. Paying additional points is primarily for the exchange of a reduced interest rate. It is normally an excellent deal to take the points if you happen to stay in the house for a long time, say approximately four years or more. The reduced interest rate is essential since it saves you a lot in the long run.
Tip #7: Get pre-approved prior to house-hunting
Getting pre-approved will save you the grief of considering houses you cannot really afford. Ideally, it will have you in a better position; thus, allowing you come up with a vital offer when you do get the right house. Unlike pre-qualification that is only based on a casual review of your finances, pre-approval, mostly from a financial-lender, is based on the history of your actual debt, income and credit.
Tip #8: Carry out your homework before bidding
Your house’s opening bid should conform to the current sales trend of the same homes in the neighborhood. Therefore, it is important to consider sales of similar homes for at least the last 3 months before making the bid. It is admirable to make a bid of approximately 8% to 10% lower when compared to what the seller is asking for, particularly when homes have recently sold at 5% lower than the asking price.
Tip #9: Hire a home inspector
Your lender will undoubtedly need a home appraisal. Nevertheless, this is simply the bank’s way to determine whether the house is worth the price you have decided to pay or not. It is necessary to hire your own home inspector separately during this period. The home inspector should preferably be an engineer with technical-know how in carrying out home surveys in the location where you are purchasing. His/her top priority will be pointing out potential problems, which are likely to be costly down the road.
Tip #10: Avoid sleeper costs
A sleeper cost is the difference between homeownership and renting. Although most individuals pay attention to their mortgage payment, it is advisable that they beware of other expenses such as utilities, homeowner association dues and property taxes. Besides, new homeowners need to be prepared to pay maintenance, potential property tax increases and repairs. Ensure you budget for sleeper costs to avoid losing your house as well as for cover.