Owning a home is something many people strive for. In fact, the occupants of roughly 67 percent of homes in the United States are owners.
The road to homeownership is not easy. Many people have to sacrifice other fun or not so necessary expenses to achieve their goal.
About half of women say they would give up a fancy engagement ring. They would rather be able to afford a down payment on a home.
It makes more sense anyway to invest in a home than a piece of jewelry. You can always buy a nice ring for an anniversary a few years down the road.
Achieving home ownership may be difficult, but not impossible. Are you looking to buy a home in Colleyville sometime soon? Here are 15 tips to help buy a new home.
1. Create Your Game Plan
First, sit down and decide your game plan. By when do you want to have purchased your home? What kind of home will best suit your needs?
Where do you want to live? What kind of neighborhood atmosphere are you looking for?
If you’re a couple, are you planning to have kids? How far down the road?
If you want to have kids soon, there’s a good chance you will still be in the house when they are school-age. Check out the schools in the area to be sure they fit your needs.
2. Start Saving
Saving doesn’t have to be a daunting task. Sit down and review your budget. Determine your bills and make your savings goals.
Anything that is extra can go to more fun expenses. Or you can always increase your savings goal. The more you can save the more options you will have for buying.
If there isn’t anything left over, don’t decrease your savings goals. Find a way to reduce your bills (bye, bye cable bill). Or try to find a way to bump up your income.
3. Check Your Credit
Don’t wait until you are ready to buy a home in Colleyville to check your credit. If you have poor credit you should set up a game plan ASAP to work on raising your score. The sooner you do this, the more success you will have.
Check it even if you know you have good credit. Sometimes credit reporting agencies get your report mixed up with someone else’s. Checking it early will give you time to get it straightened out.
Sometimes, your credit score tanks because someone stole your identity. You can fix it, but you’ll need some time. Check it well before you plan to buy and keep an eye on it in the meantime.
There are three major credit reporting agencies, Transunion, Experian, and Equifax. Each one lets you check your score once a year for free. Using each company one time, you can check it every four months for free.
4. Research Mortgages
Find out early what kind of mortgage in Colleyville you qualify for. That will help give you an idea of how much you need to save as well.
Learn about the different kinds of loans. Determine your goals and decide with care which type is right for your situation.
For example, most folks choose a fixed rate loan. But if you plan to own the home for less than 10 years an adjustable rate loan can make sense.
Talk to a professional about your situation to determine the best course of action for you.
5. Determine Your Max Price
When you get your pre-approval for a loan, you’ll find out how much home you can afford. We recommend shaving off 20 percent and making that your max price. That will give you wiggle room if things don’t quite go as planned.
Once you’ve determined your max price, stick to it. Don’t get carried away negotiating for your dream home in Colleyville.
Never agree to pay more than your max price. You could be opening to door to major problems later on. The last thing you want to do is risk losing the biggest investment of your life.
Take some time to search through listings that are available in your price range. You can find lots of gorgeous homes in Colleyville here. This will help you decide what kind of home you can afford.
6. Think about a Buying a Brand New Home
Many first-time home buyers only look at older homes. The reason for this is almost always to save money.
But older homes often come with extra costs. Old furnaces break down, old roofs need repairs, and so on.
Older homes in Colleyville are also often less energy efficient than newer ones. You’ll pay a little more each month on your energy bills as a result.
Purchasing a new construction home in Colleyville might cost a little more up front. But you can end up saving money in the long run. It depends on the type of home you that interests you.
Do your research and talk to experts to find out what would be best for you.
7. Find Folks You Trust
From your loan officer to your realtor, find folks in Colleyville you feel you can trust. Buying a home is a huge investment and it should happen on your terms. The right team of experts is crucial to your success.
Don’t let your realtor keep trying to talk you into buying more home than you can afford. If they do, it’s time to find a new realtor.
Spend some time to research your options. Steer clear of those who recommend the most expensive properties.
At Wright Group Real Estate, our number one priority is your home buying goal. We dedicate ourselves to helping you find the perfect home in Colleyville. A great property will always be well within your price range.
We know that satisfying our customers is a better method of solidifying our name. That’s how we earn our commissions in an honest way.
8. Learn Real Estate Speak
Finding experts you can trust is invaluable. But if you learn a bit of real estate speak yourself, it helps to keep them honest.
It also helps you to feel secure during the process. For example, if a random escrow charge blindsides you, it can be intimidating. But if you already know what it is you can feel confident during the process.
9. Save for the Unexpected
No matter how much you plan ahead unexpected costs will almost always pop up to surprise you. Save a little extra money to keep your stress level down.
When unexpected costs pop up, you’ll be cool as a cucumber with money still in the bank. This is great advice to keep in mind for later when you begin to plan home improvement projects also.
10. Learn to Negotiate
Try to wait for a buyer’s market to buy your dream home in Colleyville. A buyer’s market refers to when there are more homes for sale than folks that are looking to buy. This gives you a whole lot more negotiating power.
That extra negotiating power won’t do you any good if you don’t know how to wield it.
Learn to negotiate. Doing it well can save you thousands of dollars when you finally do buy your home. With a little luck, it can even bring your dream home down into your price range.
For example, the inspection report on an older home almost always shows a few things wrong with the house. You can either request that the seller fix those problems at their expense. Or you can try to get them to lower the selling price.
Of course, the seller doesn’t have to comply. But that’s the beauty of a buyer’s market. They’ll be more motivated because there may not be any other good offers on the table.
11. Know the Sellers
An unconventional method of acquiring the perfect home is by getting to know the sellers. This is most helpful in a seller’s market when there are more buyers than houses for sale. In this type of market, you may end up competing with other buyers for the same home.
In this case, sellers are less inclined to negotiate. But it is human nature to want to deal with people you like.
Get to know the sellers and try to ingratiate yourself with them. If you do this well, they will be more likely to accept your offer over another buyer’s. Even if the other buyer is offering a higher price.
This, of course, takes a little bit of extra effort and some good people skills. But it can pay off in the end.
Who knows? This might be the best way to land your dream home in Colleyville. Be open to all your options.
12. Rent First
One way to get to know the sellers is to rent the home from them first. This is especially helpful when you don’t have your down payment saved up yet.
You’re going to have to rent somewhere, so why not rent a home you’d consider buying? It’s a great way to see if a particular home fits your needs the way you expect.
Be upfront with the owners about your plans. Find out if they would be willing to consider this option.
While you’re renting a home in Colleyville, be sure to take good care of it. Always make your payments on time or early.
Keep up the yard and maintain the home as if it were your own. This is a great way to ingratiate yourself with the current owner.
This type of arrangement is often helpful when a seller has owned the home for a long time. They may have a strong sentimental attachment to the house. They will be more interested in selling to you if they see that you plan to take care of the home.
13. Be Open to DIY
There is a wealth of do-it-yourself home improvement information available. Search the Internet for whatever project interests you and you will find a host of how-tos.
This can be a great option for saving money. All it takes is a willingness to learn and put some sweat equity into your home.
Buy an older home in Colleyville that needs a little bit of fixing up. Complicated projects may call for a professional. But there are lots of home improvement projects you can do yourself.
Learn to do the simple projects on your own. You’ll save a ton of money in the process.
14. Pay Attention to ROI
Some types of repairs you will have to make to get the home up to code. Other home improvement projects are fun additions to your home.
When an improvement is not required, pay attention to your return on investment (ROI).
Does the improvement add to the value of your home? Will you recoup some of the cost when you sell the home? If the ROI isn’t very good, is the improvement useful enough to you to justify the cost?
15. Don’t Dress It Up Too Much
Also, consider the atmosphere of the neighborhood when making improvements. It will be very difficult to sell a fancy mansion for its full value if it’s in the not so nice part of town.
This is an extreme example, but you get the point. Is the house in a rundown neighborhood? If so, people won’t pay extra for fancy granite countertops or brass bathroom fixtures.
Like anywhere, Colleyville has its nice neighborhoods and its not so nice ones. When making improvements, match the home to the surrounding area for the greatest ROI.
Buying a Home in Colleyville
Buying a home in Colleyville doesn’t have to be overwhelming. These 15 tips will get you started in the right direction.
The right professional help is also invaluable. Contact us today to get started looking for the home of your dreams in Colleyville. We’ll do our utmost to match you with the perfect home.