3 Things to Do Now if You’re Buying This Spring – I’ve talked to a lot of people that are considering buying in the spring but are not quite there yet. They either want to wait until kids get out of school or they have more choices on the market. Whatever your reason for waiting a couple more months to buy there are some things you can do now to set yourself up for homebuying success later on. Here are three things to do now if you’re buying this spring.
#1. Get your finances in order.
Now would be the time to get a copy of your credit history, credit score, and correct any mistakes. Start saving up money for a down payment, earnest money, and home inspection. Your earnest money and home inspection are mandatory out-of-pocket costs is that you will need to supply when buying a home.
More: 4 Ways to Increase Your Credit Before You Buy a Home
Your earnest money is the first initial down payment you make securing the property so that the seller cannot sell the home to anyone else while under contract. This is typically between 1% and 3% of the purchase price of the home but can be as little as $500. The higher the earnest money deposit the more serious sellers will consider your offer.
You will also need home inspection costs which can range anywhere from $300-$800 based on the inspector and the size of the home. This will be paid directly to the inspector at the time of the inspection.
You may also need a downpayment but if you are selling a home in rolling the equity into a down payment, you won’t need this cash readily available. However, if you are going from a rental situation to a buying situation you may need a down payment depending on the type of loan you are applying for. FHA loans require 3.5% down, VA loans have very low to no downpayment, and conventional loans are between 10% and 20% down payment.
#2. Start interviewing buyers agents.
Having your own representation throughout the home buying process means that your interests are the top priority, not selling anyone particular home. Many first-time buyers make the mistake of going to the listing agent to purchase a home rather than having their own representation. Remember, that listing agent’s primary goal is to sell that property to whoever will buy it. This may or may not be the best home for your needs and your budget so it’s best to have an agent that doesn’t have an ulterior motive on selling one particular property versus another. It’s absolutely free for buyers to use their own representation as the commission from selling the property is split between the listing agent and the buying agent.
#3. Make a list of what you’re really looking for in a home.
The outside might look amazing in the pictures but the inside is not really conducive to your lifestyle. You might love the outside but need a large kitchen, open concept, or more bedrooms then it provides. Think about your home now and what you love about it and what you hate about it. What are some deal breakers? Are there items that you’ll tolerate versus items that are must-haves? By having a better idea of the size of the home you want and the features, you can narrow down your search when the time comes in zero in on the right house.
Need to get in touch with a lender in your area? Contact my office today. I have several reputable lenders that I recommend throughout the Mesa Arizona real estate market and can help you find the right property for your needs when the time comes.