4 Great Home Buying Secrets
When it comes to buying a home, there are a few important secrets you should know. These secrets will help you find and secure the home of your dreams and are tips that many people don't learn until they have gone through the home buying process a few times. Knowing these secrets upfront can make the home buying process easier for you.
Secret #1: Don't Move Your Money Around
If you know that you plan to buy a home in the next three to six months, you will want to keep your credit profile as stable as possible. You can pay off your credit cards and pay down loans, but you shouldn't add anything to your credit profile.
That means you shouldn't open a new credit card or take out any smaller new loans, such as a car loan. Adding debt and opening new accounts can damage your credit score and make it harder to get a home loan.
Secret #2: Get Pre-Approved
Being pre-qualified and pre-approved are not the same thing. It can be relatively easy to get pre-qualified for a loan and doesn't require that much personal information.
Getting pre-approved requires a lot more information; you have to provide a lender with your financial information. Being pre-approved puts you in a better position to get a home loan and put in an offer when you find a home you are interested in purchasing.
Secret #3: Look When You Need a Home
Don't try to time the market while looking for a home. The housing market is always changing, based on the year and specific location. Instead, go forward with purchasing a home when you are in a financial position to do so. If you wait for just the right time, you could lose out on the home that is right for you.
Secret #4: Craft a Smart Bid
Next, you will want to craft a smart bid when you find a home you are interested in. Your bid should be something you can afford, and it should be based on what the property is worth.
Put in a real bid that reflects what you can afford as well as respects the property's value and the current owner's investment in the property. If you are not sure of the home's value, get it appraised, and analyze the home's square-footage price.
When it comes to purchasing a home, don't mess with your credit report in the months leading up to the home buying process. Get pre-approved for a loan, not pre-qualified. Start looking when you are financially ready, and craft a smart bid that reflects the home's value and what you can afford; don't low ball your offer. Now that you're ready to look for homes for sale, you should find the process much easier.
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