5 Tips for Purchasing a New Home

You’ve worked hard for years, and you’re finally ready to invest in a new home — a place you can settle into and make uniquely your own while you create precious memories. However, the process of buying that home can lead to some major headaches if you don’t do a few simple things to smooth the road to new home ownership.

Certainly, you already have a solid idea of the features you want in your new home, but can you be even more specific? Especially if you are buying your forever home, you want to love it from rooftop to foundation, from front yard to back fence.

If you are touring a new model home and see something that you don’t like, don’t settle. Because the builders already have materials on-site, they are often willing to make custom adjustments for you. They can switch out that wallpaper for one that fits your tastes, or they can install a different color carpet in the den. This is one advantage to buying a brand new home that does not come with buying previously lived-in abodes.

Get Pre-qualified for Financing

Once you fall in love with a home, you want your move in day to happen as soon as possible. To make that happen, get pre-qualified for a home loan at the financial institution of your choice. This gives you a clear idea of how much you can spend and eases the anxiety of applying for a loan when you are ready to bid on your dream house.

However, keep in mind that even if you get pre-qualified for financing with a certain institution, that does not mean you cannot look for other options. Some homebuilders partner with financial institutions, and if you work with them, you may get a better deal on your loan. For example, Darling Homes works with Taylor Morrison Home funding, and they have a variety of programs designed to get buyers into their dream home, so visit www.darlinghomes.com for more information on their financing options.

Negotiate

It isn’t likely that you will get a new home for the price of a similar, previously owned home. However, as a buyer, you still have an edge regardless of what type of home you are buying. Home builders are under pressure to sell, so use that to your advantage.

Knowledge is the best tool for negotiating. Research similar homes in the area that have sold recently, and find out what they sold for as well as the original asking price. CNN Money advises, “If homes have recently sold at 5 percent less than the asking price, you should make a bid that’s about eight to 10 percent lower than what the seller is asking.”

Keep an Eye on Your Credit

Good credit will help you get a better deal on your home loan. Hence, months before you start searching for a home, get copies of your credit report. Correct any mistakes on it.

Also concentrate on improving your credit, even if it is already decent. There are some simple things you can do to boost your credit score, like paying down your credit card bills and being diligent about making payments on time.

Save Like Crazy

20% is the usual down payment on a home, so aim for that when you are saving for your new digs. Do not underestimate the power of little ways to save. For example, dropping your daily trip to the espresso stand and walking to the grocery store instead of driving can amount to big savings in the long run, getting you that much closer to your down payment goal.

Even if you cannot put 20% down, however, do not assume that you do not qualify for a home loan. Some institutions will give you a low-interest mortgage that does not require a huge down payment.

Whether you are getting ready to buy your first home or your fifth, the process of purchasing a home can be complicated and stressful. By using the above tips, you can make the road to owning your new place easier, cheaper, and faster.

Image Credit