This guide has everything we wished we'd known when we were buying our homes.
Here are the insider tips for buying a home, drawn from the collective knowledge and experience of our agents.
For starters, here are the basics of how to buy a home:
- Decide if it's time to buy.
Buying a home is both a financial and an emotional decision. Always do the math. If it works, and if you're pining to be lord of your own castle, it's time to buy. - Know what you want.
House or condo? New or re-sale? Big yard or short commute? How many beds and baths? Create a prioritized list of the things you want. - Figure out what you can afford.
Don't forget you'll be paying more than the mortgage every month: factor in the closing costs, taxes, homeowners insurance, and utilities. And assume you'll need to fix things sometimes, because they will break. - Choose an agent.
You want a full-time agent with lots of deals in the neighborhoods where you're looking to buy. Make sure you know what services the agent will provide and how he gets paid. - See a bunch of homes.
Bring your camera and take notes. Trust your gut impressions, but don't forget to kick the tires. Does it get a lot of light? Is there any mold? Can you hear the neighbors? - Find a deal.
You'll find the best deals when the home-owner is willing to haggle. Sellers are often ready to deal when they have to move, the home is empty, or the property has been on the market for 90+ days. - Make an offer.
Do your homework: a comparative market analysis (CMA) will tell you what the fair market value of a home is. - Shop for a mortgage.
Get a fixed-rate conforming loan – avoid adjustable-rate mortgages. If you use a broker, ask about her fee and the yield spread premiums. - Close the deal.
Once your offer is accepted, a title company will review the title and you'll get the home inspected. On the closing date, you'll sign the mortgage agreement, the seller signs over the deed and you get the keys to your home.