Buying a house, whether to live in or to make a quick flip, can be a complex process. And today’s process is definitely more involved than it was 20 years ago. Before you undertake the process of buying a house you will be best positioned when you are armed with best information on how to go about it. To help prepare yourself for what to expect when buying a house, here are five factors that you must consider.
You want your home to gain equity and to recover the transaction costs on your initial outlay. Experts advise on staying at least seven year before you sell the house. If that length of time is longer than what you are planning on, then consider renting until you’re ready to commit to a house for a longer while.
Plan Your Financing
Choose your preferred lender and have them get your credit report at least 12 months in advance. That way, if there are any issues that are contributing to you having a bad credit score, then you have plenty of time to work on them. Your lender will also advise on how you can be in your best behavior and avoid spending that may reflect poorly on your credit scores, risking your chances of getting that financing.
Get Yourself a Partner
When looking for a real estate partner to help you when buying a house, start by seeking referrals from the people in your circle; references from those you trust increases their credibility. Your preferred choice in a partner should have at least five years of practice along with a strong knowledge of your local real estate market. If they have closed five to seven deals per year in the last five or more years, it would be even better. Be sure to check that their license is valid and updated.
Buying a house is one of the biggest investments you’ll ever make. That being said, you have no need to rush the process. Once the money is in escrow, the deal is as good as closed. If you buy a house that you do not like, you may end up selling it sooner than you’d planned, which will not be beneficial cost wise.
Take the time to collect all of the information that you can before investing in real estate. Read books and educate yourself so as not to expect too much from deal and avoid disappointment. There are no ‘great deals’ in real estates, just deals – real deals. So make one that leaves you with a home that you will love for the foreseeable future, long enough to accumulate equity for you and a good return on your investment.