The real estate market is hot thanks to the low and favorable interest rates. Soon the interest rates will go up and you may feel that this is the right time to buy a house. Maybe this might be the best time if you know how to navigate the waters around the home buying process.
Think re-sale and think long-term
You should think about what type of house you want and the long-term goals you have set. For example, if you are planning to buy a house in the Middletown or Red Bank area and you plan to live in that house for a few years only, ask yourself who your target audience will be when the time comes to sell your house. When you choose to buy a home on a busy street or a bad school district area, families with children will not consider living in such a house when you decide to resell.
Research sources of funding and grants
Before you buy a house research on some of the mortgage options that you qualify. Most homebuyers think that their income can limit their funding. However, there are different options that depend on the type of your profession. For instance, grants for farmers, doctors, and teachers among others. The area of the house you want to purchase will also influence the amount of funding you can receive. Ensure that you research all financing options that you qualify and make a budget.
Research the neighborhood demographics
If you are planning to buy a house in an area that is full of renters, keep in mind that it only takes a few bad landlords and bad tenants to drive down a neighborhood. If your neighbors are composed of single people, ask yourself whether you will fit in and be happy if you have young kids.
Look deeper and beyond the staging
Many homes that are on sale are staged and that is why they look more appealing than houses that are still occupied. Therefore, when you are considering to buy a home, mentally eliminate the staging and pay more attention to the structure and layout. Old paint and ugly wallpapers can be fixed later. Before you make the decision to buy a house, ask for the homeowner’s association contract.
If your long term plan after buying your house is to rent it out when you move, request a copy of the homeowners contract and read it carefully. You will be surprised to learn that in some neighborhoods you cannot rent out your property.
The home buying process is always overwhelming. However, if you have an organized approach you can greatly reduce the chances of making an expensive mistake. Remember all the old advice about buying your first home. Have an emergency fund, get your credit into shape, save for the 20 percent down payment, and don’t buy a house you cannot afford.
About the Author: Lizzie Weakley is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys the outdoors and long walks in the park with her 3-year-old husky Snowball. Lizzie recommends Gloria Nilson & Co Real Estate if you are looking to buy a home in the Middletown or Red Bank area.