Looking to buy a home? Here are five financial tips that should be thought about before you look at your first property. Following these tips will make the process as smooth as possible.
Get your finances in order.
Start by getting a full picture of your credit. Obtain copies of your credit report. Make sure the facts are correct, and fix any problems you find. In general, the higher your credit score , the lower your interest rate, which means your credit score can save you thousands of dollars.
Next, find a suitable lender and get pre-approved for a loan. Email Carter Group Realtors or contact Carter Group Online for our list of reputable local lenders.
Find a house you can afford.
As with engagement rings, there's a general rule of thumb when it comes to buying a home: two-and-a-half times your annual salary. There are also a number of tools and calculators online that can help you understand how your income, debt, and expenses affect what you can afford. Sometimes a bank will give you a loan for more house than you can really afford. With our years of experience, training and financial background, our firm is powered with the knowledge to look at the house's total cost, not just the monthly payment. We empower you with the knowledge of how high the property taxes are in your chosen neighborhood, how much insurance will cost, how much you anticipate spending to maintain or improve the house, and how much your closing costs will be.
Hire a professional.
While the Internet gives buyers unprecedented access to home listings and resources, many aspects of the buying process require a level of expertise you can't pick up from surfing the web. That's why you're better off using a professional realtor than going it alone. If possible, recruit an exclusive buyer agent, who will have your interests at heart and can help you with strategies during the bidding process.
Do your homework.
Before making a bid, do some research to determine the state of the market at large. Is it more favorable for sellers or buyers? Next, look at sales trends of similar homes in the Charlotte area. Look at prices for the last few months. Our experienced realtors have been entrusted by 100′s of clients in the Charlotte metro market to guide them on competitive, but also realistic bids. Otherwise, you may end up ticking off your seller.
Think long term.
Obviously, you shouldn't buy unless you're sure you'll be staying put for at least a few years. Beyond that, you should buy in a neighborhood with good schools. Whether you have children or not, this will have an impact on your new home's resale value down the line. When it comes to the house itself, you should hire your own home inspector, who can point out potential problems that could require costly repairs in the future.