The so – called, American dream, often, includes, owning a home, of one’s own. While many people realize and understand, why this is important and relevant, there is often, not enough attention paid, to maximizing the ability and potential, for many, to achieve this objective, in an effective, less stressful manner. In order to do so, smart home buyers, prepare accordingly, and proceed, along their quest. With that in mind, this article will attempt to briefly examine, and discuss, 5 steps, which, if used smartly and effectively, will alleviate some of the challenges and obstacles, and, thus, make the process, somewhat, less painful and tense/ stressful.
1. Prepare for the down – payment, etc: Although most home buyers use a mortgage, in order to acquire their home, even, some of the most qualified, potential buyers, sometimes, neglect, what is referred to, as the closing costs. These costs include the down – payment, legal fees, and associated closing expenses. Most lending institutions want to know, where these funds come from, and so, before beginning one’s search, the necessary funds, should be transferred (at least 3 months prior), to an easily identifiable, bank account, etc. In most cases, the buyer needs to put 20% down, but, sometimes, to get the best interest rate, a larger down – payment, may be needed. Although lower down – payments, may be acceptable, often, there are usually more fees, and conditions, involved. The more prepared, the lower the stress!
2. Reserve fund: No matter how nice a home looks, nearly every buyer decides to personalize/ customize the house, and, this, additional funds are needed. In addition, it is wise, for people, to have an additional reserve or contingency fund (generally recommend a minimum of 6 – 9 months), in case of unexpected contingencies, etc.
3. Fix/ address credit: Several months before you begin shopping for a house, request your credit report, and review it carefully, to be certain, there are no errors and/ or inconsistencies. You can either do so, yourself, or use one of the credit agencies, with a quality reputation, and a high degree of experience and expertise. Do this, in advance, so you minimize it, becoming any type of negative issue!
4. Distinguish between needs/ priorities, and a wish – list: Do you know what you need, in your home, in terms of addressing a combination of your economic, family, etc, personal situations? Most home buyers have a list of items, they desire and seek, in their residence, but, it’s also to break this into, needs and/ or deal – breakers, versus, desirable options, etc.
5. Discipline and reasoning: Hiring a quality, experienced, buyers representative, who clearly understands, your needs and situation, generally eases this process! Know the local market, and take advantage of the Competitive Market Analysis, or CMA, so you have a realistic idea of pricing, values, and strategy.
It’s often your decision, whether you will control this process and period, or let it control you! Will you prepare, and proceed, in a properly prepared manner?