7 Habits For Home Buying Success
7 Habits for Home Buying Success
Are you searching for your next home and want to learn the best tips for home-buying success? Buying a new home can be stressful, so follow these simple habits to optimize your home-buying experience.
Home buying can be challenging to navigate whether you are a first-time home buyer or a seasoned pro. Moving into a new home can be exciting and stressful, and we want to help you make the process as smooth as possible.
The housing market is ever-changing no matter where you are, and many homes don't stay on the market too long. You'll have to act fast to purchase your dream home. Achieving home-buying success is more than a couple of steps; you must acquire habits to set you up for success.
The closing requirements vary from state to state, and it's worth noting that homes in Raleigh are often sold for prices well above the asking price. This means you need to be more prepared than you think if you plan on buying your dream home.
You'll likely make many mistakes along the way, but as long as you follow this guide, you can almost guarantee that you will achieve home-buying success.
Keep reading to learn about these seven habits for home-buying success.
Chapters
1. Know Your Credit Score
Before you even start the home-buying process, make sure to pay all your bills on time. This might seem like common sense, but it will help you keep a good credit score and healthy habits. Start by checking your credit score and identifying unhealthy spending habits that could keep you from getting your dream home.
There are many ways to check your credit score, like free websites and mobile banking apps. These show you how you're doing and where you can improve. Get in the habit of checking your credit score and keep making adjustments throughout the process.
Most mortgage deals go to buyers with the best credit, and you don't want to give them any reason not to give the house to you. Many home buyers utilize Credit Karma as a great free website to get up to date on your credit score. There are pros and cons, like the website requiring your social security number and having advertisements. But this is a great resource for anyone looking to improve their credit score.
Don't stress out if you realize you need to improve your credit score. Make your payments on time or request a credit report and dispute any errors. If you have difficulty making payments on time, consider setting up autopay to ensure your bills are paid.
2. Learn How To Make a Compromise
When saving money, making compromises will become your most useful habit. Whether they may be small or large, anything helps as long as you are sending that extra money to your savings account for a downpayment.
Depending on your career and budget, you might have to start cutting down on your daily coffee or switching eating out to cooking at home. These small compromises will add up, and you'll be astonished at how much extra cash you'll have. While you outline your contingencies in the purchase agreement, remember not to make too many because this may lessen your chance of getting the home in a competitive market.
In addition, compromises mean more when you are looking at actual homes. You'll have to pick between many things, like a home in a good school district and a home with a beautiful backyard. You might not find the perfect home that checks all your boxes, and you'll definitely have to make some hard decisions.
If you are the type of person who buys a $4 coffee every day, simply cutting down on this will save you up to $1,460 a year. Many other simple compromises will save you a great deal of money. Just keep reminding yourself of the bigger picture and how happy you'll be in your new home.
3. Plan Ahead
Planning ahead can mean many things, from contributing to a savings account to getting pre-approved for your mortgage to getting insurance. This is also where it will be important to stay organized. Moving to a new area will come with many changes, from the cost of living to your housing payments.
Make sure you know how much your budget may need to change, and start testing homeownership budgeting. You may run into a few hidden costs and must be prepared.
Obtain a preapproval letter to help you know how much you can afford to spend on a monthly mortgage. Getting pre-approved can become lengthy, and the lender will run a full credit check to verify your documentation to provide a specific loan amount. This is also why checking your own credit score beforehand is vital.
It is recommended to have a FICO credit score above 600 or 700; anything less than that might mean you will have to pay a higher monthly mortgage rate. Be prepared with proof of income, review your credit score for errors, and make improvements.
4. Be Persistent
Many housing markets are highly competitive, and although this is based on many factors, you need to stay persistent if you plan on acquiring your dream home. You might have to make an offer on multiple homes before one is accepted. Please don't give up; remember that it'll all work out.
Being persistent will help you to stand out in competitive markets. Housing prices have risen in recent years, and with intense bidding wars in some markets, it can quickly become burnout. But that doesn't mean you should stop trying.
Being as aggressive as possible is imperative if you have found the perfect home. If the asking price exceeds your budget, try being creative and catering to the seller. Just make sure to make yourself stand out and never give up. The perfect home is just a couple of offers away.
Keep researching; new homes go on the market daily, and the best ones will go fast. You must be as persistent as possible if you plan on buying the home of your dreams.
5. Educate Yourself on the Home Buying Process
The home buying process varies significantly from state to state, and if you are planning a far move, you must familiarize yourself with the new process. No "one size fits all" regarding the real estate closing process exists. Each state's closing requirements vary, and you should be updated on all the differences.
The North Carolina home-buying process is relatively straightforward, and if you follow the simple steps, you should end up with your dream home in no time.
Try seeking advice from an experienced real estate agent if you encounter any problems. They will have the best advice, especially if you want a new home in a new area.
It is also important to learn about home insurance and how to obtain a mortgage.
6. Stay Flexible
One of the most important habits is understanding your wants versus your actual needs in a home. In addition to making compromises, you will need to stay flexible. You might not find a home that checks off all your boxes, so you might need to give up some in order to find the best home. Don't stress about finding the best time to buy a home; ensure you are prepared.
Keeping an open mind means expanding your search to areas you might not have considered more. With the increase in work-from-home or hybrid jobs, you might be able to find a bigger and less expensive home in a more rural area.
While looking for a new home, you most likely have some specific home features in mind. But it is good to keep some flexibility on this list. Keep basic requirements like the location or home size, but you may need to retain some flexibility regarding the minor details.
Our advice is to be flexible with the details of the home; in the future, you can always make home improvements, but you might not be able to change the location—research available properties to compare homes in your ideal neighborhood. Understand that you may have to give up some home qualities, but you'll have plenty of time to add anything you want once the home is yours.
If you visit an open house, take your time and conduct a thorough walk-through. We recommend keeping a list of what you do and don't like. But, also remember that if you don't like small details like the carpet or lighting, you can fix these once the home is yours.
7. Find the Right Agent
Working with a real estate agent won't cost you anything as you enter the home-buying process. Working with an experienced agent is extremely advisable, especially if you are a first-time home buyer.
On average, the seller typically pays the real estate commission, about 5% or 6% of the home's sale price. You should interview more than one agent before you land on one. Ask as many questions as you can, and take the time to find the perfect agent for you.
Buying a home will be one of the biggest transactions in your life, and working with a real estate agent is essential. Without a real estate agent, you don't want to risk leaving considerable cash on the closing table. A real estate agent will help you through many parts of the process, including when it comes time to make an offer on the home.
You might be expected to understand many legal terminologies if you don't have a real estate agent. The seller's agent might be unable to explain all the details to you, but a full-service real estate agent will walk you through all the ins and outs to ensure you know exactly what you're signing.
FAQ: Habits for Home Buying Success
Here are some commonly asked questions about home-buying success.
How can I be successful in buying a home?
There are many ways to buy a home successfully, including being responsive, doing heavy research, having good credit, and surrounding yourself with the right people.
How can I increase my chances of getting a house?
Before starting the home-buying process, check your credit score, lower your debt-to-income ratio, and continue saving for your down payment.
What adds the biggest value to a house?
Typically, a converted basement or attic adds a large value to a home, but this also includes smaller upgrades around the house, like new siding, vinyl windows, or even upgraded insulation.
What decreases property value the most?
Several factors contribute to low property value, like neighborhood conditions, poor curb appeal, low-quality school districts, and homes with many obvious repair issues.
What is the #1 thing that determines the value of a home?
The price of comparable properties is the #1 thing that determines the value of a home, meaning you should research if similar homes have sold in the community for lower or higher than the home you are looking at.
Habits For Home Buying Success - The Bottom Line
Don't let the home-buying process scare you; many easy habits make your life easier while you search for your new home. Stay patient and diligent; it won't be easy, but you will find the perfect home.
The most important thing to do is stay prepared before starting the process and carefully consider your options. This is where working with an experienced real estate agent comes in handy.
If you're considering moving to a new state, there are many things to consider before and after buying your new home. Raleigh, NC, is one of the fastest-growing areas in the country and has many stunning homes for sale; you'll have to act fast if you want to buy your dream home in one of Raleigh's best neighborhoods.
As you buy your next home in the Triangle, feel free to contact one of our helpful real estate specialists, as they are eager to help you find the perfect home. We know that buying a home can be stressful, and there are many common mistakes, so ensure you are prepared beforehand.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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