Buying a home is not only a big step for many homeowners, but it can also be a stressful process. According to statistics, 40 percent of first-time homebuyers say that the home buying process is one of the most stressful events of their lives. For some, it is a once-in-a-life decision and so buyers want to be sure they are making the right choice before they can close a deal on a property. If you are planning to buy a house in New Jersey, you may feel stressed, nervous, excited, and even a little sad. It is normal to experience such emotions. Understanding and knowing why you feel these emotions can help you tackle and manage your buying decisions. Ask yourself why you want to buy a new home.
You may be tired of renting and want to own a home of your own. You may want to settle down and looking for a place you can raise a family. You may be looking for new investment opportunities and because the real estate market looks favorable, you feel excited to dive into it. There are a lot of emotions you will feel during the home buying process. However, to make smart home-buying decisions, you should not depend on your emotions alone. Consider these other tips on what you need to keep in mind before buying a home.
Create A List of ‘Must-Haves’
The process of viewing potential homes can be exciting as you explore new possibilities. Without a list of “must-haves”, it is very easy to overlook important things that you need in your home. Make a list of all the things you want for your ideal home and share them with your realtor. This helps your realtor customize your search to direct you to your ideal property.
Be Financially Ready
Unless you are planning to make a cash transaction, you need to check your finances before buying a house. When applying for a mortgage, your lender will need your financial information before they can approve you for a loan. Some of the information you need to share include your bank statements, income, credit score and employment history. Using this information, your lender will give sober advice on whether you can be able to afford your mortgage or how long it will take you to pay back your loan. This information will help know whether you are ready to take the next step of buying a house or not. Don’t start shopping for a house before you get pre-approved by your lender.
Make Sure You Have Enough for Down Payment
Before you apply for a mortgage, make sure that you have saved enough for a down payment. Save at least 20 percent of the total asking price to be on the safe side. The more you save the smaller mortgage you will apply for. This will allow you to make lower monthly payments and give you more equity in the home.
Work With an Experienced Realtor
Most homebuyers make the mistake of shopping for a house on their own. There is a lot that entails the real estate market. A good realtor will not push you to buy just any house because they want to make a sale. Instead, an experienced realtor will consider all your needs and help you narrow down your search to specific properties. Furthermore, a good realtor knows all the pros and cons of all the properties in his listing thus helping you make an informed choice.
