New Home Buying Tips

Get Mortgage Pre-Approval

One of the most important new home buying tips is to visit a mortgage lender before you start shopping for the home of your dreams. Getting pre-approved for a mortgage loan can help you understand exactly how much house you can afford to purchase. Knowing your mortgage loan eligibility can be very helpful when you start shopping for a house.

Additionally, you can enjoy a competitive advantage in the real estate market when you are pre-approved for a loan. When buyers receive competing bids, one of the factors they will consider when deciding which offer to accept is mortgage pre-approval. From the sellers perspective, there is less risk associated with accepting a purchase agreement from a pre-approved buyer than from one that has not yet verified his or her eligibility for a mortgage loan.

When you are approved in advance for a mortgage, the issue of whether or not your credit history is strong enough for financing qualification is removed from the equation. If a buyer knows that your credit won't be a barrier to getting financing, he or she knows there is an increased likelihood that the purchase will actually make it to the closing table.

Great New Home Buying Tips

Take several factors into consideration before deciding on a particular home.

Shop in the Correct Price Range

When you are shopping for a home, be honest with yourself and with your Realtor about the right price range for you. If you set your sights too high you may be disappointed with the properties you are actually able to afford. There is no point at looking at properties that you cannot afford to purchase. Doing so wastes your time, as well as that of your real estate agent and the homeowners.

Commuting Time and Distance

It is important to consider how easy it will be for you to commute back and forth to work from the neighborhoods that interest you. Distance from your workplace is an important consideration, but it's also a good idea to consider traffic patterns. Visit neighborhoods that interest you during the most hectic travel times, and calculate exactly how long it will take you to get to work from the area. Make sure that the commute is acceptable before you consider purchasing a home in the neighborhood.

Home Buying Tip: Find out about the neighborhood's school district.

School District

If you have children, or if you plan to sell your home at some point in the future, it's important to consider the school district in which the property is located. Homes with access to the best public schools often demand a premium price, because people want to be sure their children have access to high quality educational opportunities.

Neighborhood Condition

After you have narrowed down your choices to neighborhoods that appeal to you and are conveniently located, the next step in the selection process is to spend some time evaluating whether or not purchasing property in the area represents a sound investment.

You should consider the condition of the other homes in any neighborhood you are considering. Are the homes in good condition? If not, ask yourself if the neighborhood seem to be in decline or if it is in an emerging state. If the homes aren't in the best shape, are people who seem to be interested in renovating them moving into the area? These factors can have a major impact on the current and future value of a property.

It's also important to find out if there are any restrictions that apply to properties in your the neighborhood. For example, if you plan to store a recreational vehicle in your driveway, it's important to verify that there isn't a covenant preventing you from being able to do so. If you want to paint your house a certain color, verify that there are no zoning restrictions preventing you from doing so. If there is a homeowners association, verify the dues and find out how active and restrictive the organization may be.

Wise Real Estate Purchase Decisions

It is important to find a house that you love and in which you can live comfortably for several years when you are shopping for a new home. By making sure that the emotional nature of purchasing homes is tempered by following practical new home buying tips, you're sure to make a wise decision when finalizing your residential real estate purchase plans.