Did you know that homes are getting sold within about 60 days of being on the market in the United States?
The home buying process has sped up and many people are having to make quick decisions about placing an offer.
If you want to get the perfect home, you need to consider some factors ahead of time.
Read further to learn about what you need to do before you make an offer on a home!
- Set a Budget
One of the most important things to do before you make an offer on a home is to set a reasonable budget.
Sit down with your partner and review your income and savings. This will help you determine how much you can afford for a downpayment and monthly dues. Many people talk to their financial advisors about what route would be best for them financially.
Try to give yourself a realistic and affordable price range. Conducting a market analysis can help you determine fair prices that you should expect to pay.
- Raise Your Credit
If you want financing to go seamlessly during the home buying process, you need to raise your credit.
Paying off credit cards and lowering debt can raise your credit quickly. The reason you want to have a reasonable score is that it can help you qualify for a higher pre-approval rate. A higher credit score will also help you get lower interest rates on mortgage payments each month.
Try not to get discouraged if your credit isn’t quickly rising. Although these numbers can fall overnight, it takes time to build back trust and show that you are low-risk.
- Figure Out Financing
Are you planning to pay for the house in all cash or will you be getting a mortgage?
You’ll need to head to the bank or mortgage company to figure out the details of how you will pay for the home and if you can afford it. When people discover that they can’t afford a home yet, they often rent to buy.
Most sellers will want buyers to get pre-approved so that they don’t waste time on offers that won’t work. Your personal banker or reputable home mortgage company can help you get a loan, especially if you are a first-time buyer. There are also programs to help veterans and households with lower incomes.
If you are selling your current home, Selling.House is a wonderful resource.
- Research the Area
Think about your hobbies and lifestyle, this will help guide your research.
Researching the area you are considering moving to can help you find the perfect fit. For example, if your family enjoys hiking and exploring nature, near the woods or mountains would be ideal. For those that want a laid-back lake life, you’ll need to find which towns are best.
If you have kids, many people recommend researching the local school districts and teaching methods. Changing schools can be a major adjustment for children. This is why you must ensure that they are going to a safe, welcoming, and knowledgeable environment.
Checking crime rates for the area can also help guide your decision on a home.
- Tour the Home
Since most people buying and selling their homes work with a real estate agent, you should be able to schedule a tour quickly.
Agents, or you, can contact the sellers and identify when they have available openings. Try to view the home as fast as you can so that people don’t place offers before you get the chance. Avoid rushing through the house, especially if you want to prevent purchasing a damaged home.
Bringing your children on the tours can help them feel involved, however, this can be tricky with emotions. Since the market is so hot right now, the home won’t be guaranteed until you make an offer and it’s accepted.
- Get an Inspection
Unless the seller’s disclosure already comes with an inspection report, you need to request one.
Home inspectors will visit the house and ensure that the value of the home represents the condition of the home. They will consider previous damage and upgrades to determine how much the home should sell for.
Inspections are helpful to the buyer since they can bring light to expensive issues. It’s better to find out ahead of time that the basement floods rather than after you move in.
- Think of the Little Things
In all of the excitement of buying a home, you might have forgotten to think about the little things— like commutes and neighbors.
Often, people discover that these small details that get overlooked play a big role in their happiness in the new home. It can be frustrating to discover that you have an hour-long commute each way and terrible traffic after you move in. Pay attention to the home’s surroundings and put them into perspective for the rest of your life.
It can be helpful to meet the neighbors before making your offer if you want to be sure. Another little factor to consider is how close the home is to family and friends so that you don’t feel isolated.
Pause Before You Make an Offer on a Home
There are several items you will need to consider before you make an offer on a home so that you don’t have regrets.
From your budget to your neighbors, there’s nothing you want to overlook. Buying a home is a big investment and although the process might feel rushed, you don’t want to regret such a large purchase. Don’t be afraid to work with financial advisors and real estate agents for help.
Be sure to read our blog for more content about purchasing a home and finding the best community for your family!
