Tips You Need to Know Before Buying a New Home 

The possibility of purchasing a new home is one that can be exciting and have you eager to get started. However, it’s important to slow down, take your time and determine what your next step should be in the lengthy process. 

Finding a local Realtor is paramount to your home-buying success. Let’s say you want to move to Santa Barbara. Your first task should be finding one of the many reputable Santa Barbara Realtors to help guide you through the process of finding your dream home. In this post, you’ll find a few tips for buying a new home that everyone should know before they start pounding the streets to find one. 

Have Your Down Payment in Hand 

When you’re ready to buy your home, you’re going to need to have saved up for the down payment necessary to get approved for a home mortgage ahead of time. It’s important to note that the bigger your down payment, the less of a risk you are for the mortgage company, which means you have more of a chance of getting approved for the amount you ask for. Also, the larger your down payment is, the less your monthly payments will be. 

Get Pre-Approved 

Put simply, getting pre-approved for your home loan can mean the difference between having a seller accept your bid and going with another buyer instead. It’s also super helpful when it comes to finding a house. For example, if you are pre-approved for $200,000 before you go out to hunt for a house, you won’t be tempted to look for a home in the $400,000 range. It’s also a good idea to look for homes under the amount you have been pre-approved for so that you don’t spend all of the money on the home. 

Create a Budget 

While you’re looking for your dream home, and you should get what you want, it’s important to create a budget that you don’t go over. Remember, you will have house payments, but you’ll also have other expenses as well. Nine times out of ten, you’re going to want new appliances and new furniture for your home and you don’t want to overextend yourself and end up eating noodles every month. Creating a budget will guide you through the process and keep you from spending too much. 

Keep Your Money Where It’s At 

Your credit and bank accounts are going to mean everything when it comes to being approved to buy a new home, so it’s unwise to make any large purchases or move your money around for at least three to six months prior to your loan application. This is because you don’t your credit profile to change, as this is what lenders will look at to see if you’re reliable enough to be approved for a mortgage. Remember, your credit score is extremely important and you want it to be the best it can be. Also, don’t make any major changes after you sign your contract. Lenders often do one final check just before funding to make sure nothing has changed.

Always Have the Home Inspected 

While you might be in love with the home you’ve found, you need to look beyond the cosmetic portion of the house. Always hire a licensed home inspector to inspect the home from top to bottom. The inspection will cost you around $200, but it’s worth every penny to avoid the thousands of dollars in repair bills and other costs you could get stuck with if you don’t. 

These are just a few of the tips you should follow when searching for your dream home. Buying a new home can be super-exciting, but not taking your time can end in disaster, not only for your wallet but for the house you choose as well.  


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