Four Simple Things You Can Do to Ensure a Smooth Home Purchase

Buying a home can be an emotional, time-consuming, and complex process. There are a few things that you can do to help make the process go as smooth as possible:

1) Check your credit.

Before you apply for a home loan, regardless of your credit, it's a smart idea to obtain a copy of your credit report from the three major credit bureaus and review the information. If there are errors or things that need to be addressed, it's easier to address them before you have found a house, than after you have found a house and are trying to close your loan.

2) Get approved before you buy.

An approval means that a lender has reviewed your credit history, verified your assets and employment, and has approved your loan before you have found a home to purchase. As long as the home appraises for at least the purchase price, the loan should close.

3) Learn about the neighborhood.

Often times, the house you find may be in a neighborhood that you're not familiar with, which is ok. It just means that you'll have to do a little more research. If you find a house that you like, ask for a list of the neighborhood properties that sold in the last year. How does your home rank? Is it at the top of the price range? If so, it might be hard to resell. Is it average or on the low end? If so, great -  as the other home prices go up in value, they will put your home's value up as well.

Check out the schools - are they sought after? A good school district means your neighborhood will always be valued by families which is a great reassurance to purchase, not to mention the added value if you have school-age children.

Next, contact the police station and obtain crime statistics. Are they acceptable to you? Sometimes, if they won't give them to you, it could be cause for alarm.

Talk to the neighbors. The more people you talk to, the better sense you will get of who makes up the neighborhood and how they will affect your time spent in it.

Check out the location of the shopping, police and fire stations, schools, and air traffic overhead. These are all things that might affect your property value or quality of life. 

4) Have reasonable expectations. 

There is alot of money at stake. No house is perfect. Understanding and remembering these two statements will help diffuse the negotiation stage, the inspection stage and the closing stage.

Emotions are high for both buyers and sellers. The seller may have loving memories and years of equity in the house. Maybe they are being relocated and don't want to go. Understanding their motivations for selling will help you appreciate their situation and predicament during these emotional times.

There is alot of money at stake for all the parties involved (and that includes the realtors). Just remember that market value (the value of a home) is the price that a willing buyer and a willing seller can agree to. If you can not agree on a price, ask yourself is there something you missed? Are there comparables that support the price that they want? Are there motivations that might factor into the price they are demanding? In the end, does it matter? What is the house worth to you today and what do you think you can reasonably sell it for based on the amount of time you plan to spend in it? Think about the answers to those questions before you make your move.

No house is perfect -  ALWAYS get an inspection. It might be a few hundred dollars, but it's worth it. It's the inspector's job to find any problems with the house that could cost you thousands to repair down the road. Some inspectors have a tendency to overplay the importance of their role and the items that they find. Get objective opinions that you trust before making a decision on an inspection report. Likewise, if an inspector says a foundation is cracked but it's nothing to worry about - get a second opinion. Ask a handyman for an idea of how much reparis will cost and how complicated they are. The home buying process is an emotional, complex, and time-consuming process, but it's worth it. Nothing compares to owning your own home in a neighborhood that you chose.                

Smart Buying : Ten Tips Every Home Buyer Must Know

1. Don't look at houses out of your price range. It seems nothing is quite good enough after you spend a lot of time looking at houses above what you can afford. So determine what you can afford before you begin looking.
2. Don't spend more than you feel you can afford. Even if you qualify for a larger mortgage, stay with what you feel comfortable with.
3. Qualify for a mortgage before you begin your home search. This lets you know what you can afford and it is a plus when you locate the home you want to buy and the sellers know you are already approved for a loan.
4. Unless you are willing to make two mortgage payments, be sure to sell your home before you enter a contract to buy another.
5. Don't buy the wrong size house. Plan for the future. Is the home you are interested in large enough for more children and other events that will change the size you need.
6. Be sure you don't buy in a neighborhood before you fully check it out. Go into the area at different times of day and also look at the condition of other houses in the area. Spend lots of time doing this before you buy.
7. Be careful about buying a home that might be hard to resell. Has the home you have in mind been on the market a long time? Find out why. It's best not to buy a house that is very different from the other homes in the neighborhood. And the color, if it can't be easily changed can be a problem.
8. Do your homework so when the "right" house comes on the market you really like, you are ready to make an offer. You will find yourself heartbroken if you find the house you want, but you miss it because you are indecisive and late making an offer.
9. Be sure you get the right mortgage for your situation. If you know you will be in the home for a relatively short time, for instance, maybe a short term loan will have a much better interest rate.
10. Check around and get the right homeowner's insurance. Always purchase guaranteed replacement insurance. Also, be sure when you purchase your home that you have a homeowner's warranty to cover air conditioning & heating system & all other systems. And don't forget to always have a home inspection before you buy.

Call Jim Vines at Vines Realty for great real estate opportunities in Montgomery, Prattville, Millbrook and Wetumpka, Alabama