Buying your first home is an exciting proposition – but it’s also slightly terrifying. The small print, the sales-driven realtors and the abundance of choice make things a little daunting for those who have little experience in the market. It’s enough to send your head into a tailspin. Here’s some advice.
When looking for homes for sale in Delaware, it pays to do your research. If you’re a first-time buyer, make sure you consider the following tips before making that all-important final call.
Be Aware of Market Value
Buying a property isn’t just about what you can afford or whether you like the place or not – it’s also about making a good investment. Do your due diligence on the home you’re considering. Do the following to get your hands on a rough guide price:
- Consult local real estate agents – don’t limit yourself to a single agent, but go to several. Ask for properties in the local area to get an idea of the market and the neighborhood you’re considering.
- Past Sales – Many people don’t do this, but it’s a very good indicator of what you should be paying. Go through sales that have gone through in the last year or two.
This will equip you with a very good idea of what you should be paying for a given property. NEVER enter a buying proposition without being aware of the market – after all, you’re looking for a sound business deal as well as a home to live in.
Mind Your Budget
This is a mistake that a large majority of first-time buyers will make. The reason for this is that we stretch out our finances to the absolute maximum – that ‘dream home’ is sometimes too strong a pull, leading people to make bad choices.
Always stick to the budget you’ve set, no matter what. Just a few thousands dollars more can land you in a financial position that may lead to foreclosure in the future. Remember, there are several ‘ideal’ options for you out there – stick to the one you can afford. Use this handy calculator to find out just how you stand.
Boost Your Credit Score
Before you apply for a mortgage, make sure your credit is in top condition. You don’t want to end up with a subpar mortgage that doesn’t give you the best deal possible.
Maximize your options by checking your credit well ahead of time. If it doesn’t give you the results you’re looking for, work on it and try every trick in the book to boost it. Ensure your financial affairs are in order first – only then will you be in a good position to apply for a decent mortgage deal. This article, from MoneySavingExpert.com, has more on credit scores.
Finally, Do You Really Need to Buy?
Many people jump into buying a home without really knowing whether it’s right for them. It’s often assumed that buying property is the best investment you can make and while this is generally true, it may not be the case in your personal situation.
This isn’t aimed to dissuade you from buying, but rather to advise you to line up your options clearly and without bias. Consider whether buying a home fits into your financial picture. You can always stick it out another year or two and invest then. It’s all about waiting for the right moment.