Homebuying is an involved process, but taking some prerequisite steps will improve your experience. Learn how to be an intelligent Tenafly homebuyer.
Strengthen your credit
Improving your credit is an excellent idea whether you want to buy real estate tomorrow or in five years. Lenders will check your FICO score when deciding if you’re a reliable applicant. They’ll pull your credit report from Experian, Equifax, and TransUnion. Banks will set their minimum score, but a score of 620 or higher is usually best.
You can look for a credit repair company if excessive damage pulls down your score. These professionals will look at your credit report and find things that can be removed. Incorrect information, illegal reporting, and old accounts shouldn’t be there. You can also take action on your own by learning fair credit laws.
Settle on a price range
A skilled Tenafly Realtor will guide you to homes that are good for your budget. It’s exciting if you get approved for a high mortgage amount, but this doesn’t mean you can afford it. There’s a lot that goes into the cost of buying a house. When it comes to homeownership, the mortgage, insurance, and property taxes are the top three expenses. Leave wiggle room for utilities, ongoing maintenance, and surprise repairs. If you’re joining a homeowner’s association, be sure to factor in monthly dues. In the future, when it’s time to sell your home, you want to garner a profit. Buy low and sell high is the way to go.
Acquire a pre-approval letter
Anything to reduce stress during the homebuying process is valuable. Real estate agents and mortgage lenders will know your resolve if you obtain a pre-approval letter. Taking this step may streamline your application process. Banks will first do an informal evaluation of your credit, debt, income, and assets to see if you pre-qualify. Once you pass “round one,” they’ll do an in-depth assessment of your readiness to buy a home. In this phase, the bank will consider your credit score, history, debt-to-income ratio, and all your financial information. If the lender finds your information beneficial, they’ll issue you a pre-approval letter. This document shares what type of loan and amount you’re approved for. Partner this with any offer you make, and realtors and sellers will know if you’re prepared to be a homeowner.
Narrow down the type of home you desire
The Tenafly luxury real estate market has a lot of selections, so choosing one can be daunting. While some buyers may prefer the spacious privacy of a single-family home, others may prefer the trendy atmosphere of condominium life. The amenities of a homeowner’s association may be attractive, or their restrictions can appear limiting. Buyers who like do-it-yourself projects may be interested in a “fixer-upper.” Purchasing a home like this gives you the option of obtaining a renovation loan—having another lending option is an advantage.
Research your property of choice
Intelligent buyers do their legwork. To avoid unhappy surprises at closing, do a property history search. Public records will reveal valuable information such as all prior owners, an unpaid tax lien, and deed information. You’ll get title insurance to protect yourself from these problems, but it’s best to know what you’re getting. Property specifications will also be available, such as square footage, acreage, the number of bedrooms/bathrooms, and more. Equip yourself with this knowledge before investing time and money in a house.
Utilize modern technology
Today’s homebuyers have extensive tools to select their dream home. While open houses are influential for viewing a property, being able to attend all of them may not fit your schedule. Virtual Agent Services make home searches possible no matter how busy your schedule is. These spectacular features include private interactive home and neighborhood tours, virtual open houses, enhanced 3D staging, and more. A technologically-savvy realtor can walk you through the virtual homebuying process with ease.
Obtain an inspection to protect your asset
An inspection isn’t a required part of the mortgage lending process. However, it’s an important step to ensure you’re buying a quality home and a practical way to avoid hassles. When you’re interested in a home, hire a certified inspector to get an accurate picture of its condition. Many houses for sale in Tenafly are elegant and appear flawless. Even so, repairs, upgrades, and replacement materials or appliances may be necessary. Having this evaluation in hand when meeting with the seller will give you an advantage. The seller may be willing to bring the sale price down, work repairs into the closing agreement, or commit to having the work done before finalization. Armor yourself with correct information.
Take personalization slow
The thrill of buying your first home is incomparable, and it’s tempting to fill it up with the furniture you’ve been eyeing for years or even call an interior designer to fancy up your new place. As a new homeowner, your best bet is to decorate and personalize your space gradually. This will allow you to put money away for unexpected expenses and even throw an extra payment toward your mortgage. The first month is perfect for purchasing essentials like a cozy sectional, a sturdy kitchen table, and fluffy bath towels. After that, pick one delightful piece a month, such as a vibrant centerpiece or a playful coffee mug collection. You’ll have time to find your taste while saving for your future.
Choose the right realtor
Throughout any phase of the homebuying process, an exceptional broker will be your best ally. Similar to choosing a mortgage lender and property, do your homework before partnering with a realtor. You’ll receive the best guidance from one who’s familiar with your market of choice, is experienced in the field, and is trustworthy. Speak to your connections, read online reviews, and meet the broker in person to find out if you gel.
Linda Stamker is an ideal partner in the Tenafly homebuying process. Linda hails from Bergen County and has won numerous awards, including the NJAR Circle of Excellence Award from 2008-2020. Contact Linda Stamker at (646) 234-9900 or linda(dotted)stamker(at)compass(dotted)com. She’s eager to help!