So you’re now ready to purchase your first piece of property or home. You’re probably driving around looking at properties, looking online on websites, even looking in newspapers, you’re ready to purchase. Did you know that there are certain things that you must put in place before you go to purchase that home? Here I give you the five things that you must put in place before you go on the hunt looking for that home.
Alot of people they wake up one day, they feel as if buying a piece of property is like buying a car. No, there are some things you have to put in place first to make sure that the transaction goes smoothly as possible. You don’t want to run into a brick wall or to cause a delay or miss out on an opportunity that you could have gotten because you didn’t do what you’re supposed to do. So I want to help give you a little bit of advice on what to do to make sure that you are ready to purchase that piece of property or that home that you’re ready to buy.
Get pre-qualified
First things first, you want to get pre-qualified. This saves you the hassle of rushing around if you find something. What happens is persons drive around, they look into newspapers, they find something, and they like it. Now the thing is they’re able to put in an offer…..okay. When they put an offer, they realize that “If I have an offer, I have to see if I can get this or not.” Whereas if you did that beforehand, you would know how much home you could buy. So this eliminates the stress of you finding something that you like, and then you have to probably go and find something else because you lost it because you weren’t ready, or you weren’t prequalified to let you know how much home you could buy. Because what you don’t want to do is you don’t want to try and put an offer on something that you’re not qualified for. Don’t do it. Please save yourself the embarrassment and save yourself the headache, because you could fall in love with something and get emotionally attached without you having it, and then you lose it because you’re not qualified. Or what else could happen is you could buy more property or more “home” than you think. So save time, go to your bank, set an appointment, whatever financial institution you want to use, go there and find out exactly how much you are qualified for, and then go on the hunt so you’d know exactly what you’re looking for. Everything should be smooth sailing after that.
Seek out an attorney to represent you
You want to seek out an attorney to represent you. You don’t want to wait last minute to try find an attorney, no. You want to get an attorney that you’re comfortable with. Do your research, there are many attorneys out there that you can use who are professionals in the real estate industry. But you want to do your research to see which one is best for you. If not, you can reach out to your real estate agent and let them give you some tips on that. Ask them who they think who are credible in an industry. So make sure you find an attorney because what happens is when the legal process starts within the transaction, you need to have that attorney in place to ensure that everything goes smoothly. For every real estate transaction, you need an attorney. You cannot skip out on that. So just remember that you need an attorney to represent you to make sure everything is smooth, to make sure nobody is doing some kind of skullduggery. So make sure that you seek out that attorney before you go on the hunt, and you have that in place. So firstly, you want to make sure you get pre-qualified.
Make a budget
The best way for you to set a budget is by getting prequalified and after prequalification, you can then decide your budget. Try not to exhaust all of the funds that the bank prequalifies you for. If you are pre-approved for $300,000 try not to exhaust the entire $300,000. Leave some type of cushion.
Have your deposit ready
Make sure you have your deposit. Here is how you can put your deposit in place. Once you get pre-qualified from your bank, set aside 5% – 10% of how much you were pre-qualified for. Set that aside to make sure that you have this on hand in case you find something you like and want to purchase. Don’t wait until you find something to try and scrape up the funds. What can happen is, if it’s on the market, there are other persons looking too. You can lose it very quickly. Once somebody puts in an offer, it has been accepted, and they put down a deposit, that’s it. You lose it. So make sure that you have your funds in place for when you find the home that you like, So when you’re ready to go ahead, there are no distractions, no rushing around trying to find funds, trying to borrow. So make sure you have your deposit in place. I stress this a lot: have your deposit.
Have additional funds for closing costs
Alot of persons forget this part of the transaction. Closing costs include insurance, different little knickknacks that will happen at the end when you’re about to buy the home. So you don’t want to exhaust all of your funds. Make sure have something left for closing costs that you may have. You real estate agent could advise you on what to put aside for your closing costs.
So have these things in place when you are on the hunt for a home. Make sure you do these things. It makes things so much easier and so much smoother in the process of doing your real estate transaction.
Talk soon!!