Home Buying In 5 Steps
Home buying doesn't have to be a nightmare. It can be fun and rewarding provided you have a plan.
I want to buy a house is not a plan.
Today, in Wilmington NC, it makes better sense to buy than rent. The money you pay as
rent is not tax deductible whereas the interest you pay on home ownership is.
Consult your accountant.
In my experience I've found that most people looking to buy a house don't know where to start.
Usually they see a yard sign and call the listing agent/company: THAT IS MISTAKE #1:
You see, the listing company represents the seller and it is their duty to help the seller get
the maximum. If they take the buyers to the full price they are not doing anything wrong,
infact they just did an excellent job for the seller. If you as a buyer don't know what you're
doing you are liable to end up paying near full asking Price whereas if you have a
BUYERS' AGENT working for you then you will be as equally represented as the seller.
Step 1
Talk to a lender and see what you can afford and what the lender is willing to let you borrow. This is to know what price range properties to see and what kind of a monthly payment it will require. This way you can budget for your monthly investment liability.
Step 2
Choose a loan that suits your situation. For example, if you are planning to own that house for Two to Three years you might want to take a variable rate mortgage wherein the interest rate is low the first year and then increases a little the second year.
Step3
Hire yourself an Accredited Buyers Representative and together list on a piece of paper what your house MUST HAVE and what you would like to have but may be able to do without If the price is right.
Step 4
Be realistic. Don't expect to buy a Lexus at the price of a Yugo. Chances of finding that kind of a desperate seller are slim to none.
Step 5
Buy today what you can afford today. Do not factor in a raise that you might or might not get. This is a sure way to end up defaulting on your loan and ruining your credit. Last but not the least: Follow the sound advice of a professional.
Sure you can talk to Uncle Charlie, but if he is not a real estate professional chances are that he knows the market from 20-30 years back whereas the market changes daily and in 20-30 years it has changed Drastically.
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