8 Secrets to Homebuying

Brought to you by Morgan Financial

Written by Matthew Langdon

6-minute read

There are plenty of well-kept secrets for buying a home, but you don’t have to be an expert homebuyer to take advantage of them!

1. Contact a Trusted Lender with a good reputation

Mortgage companies tend to be the best (Shameless plug) for the reason being that mortgages account for their entire business, therefore it’s naturally what they focus on doing well and doing right. Local lenders have some pretty considerable advantages that play in the favor of both the buyer, and the seller. One location usually delegated to servicing an entire county means that their resources are not spread amongst multiple locations or services. This allows for quicker communication, and efficient internal work structures. The loan officer doesn’t have to wait 2 days for communication from the underwriter who lives 3 states away.At the very least, lenders have the ability to help you establish what you can actually afford in the pre approval as well as assist you with financially planning in the event that you want to buy something nicer. Ask friends and family who may have recently purchased who they used and if they’d recommend them.

2 – Don’t fall in love…with a home, yet.

You’re pretty much setting yourself up for some guaranteed heartbreak here. There are multiple offers on most properties at any given time, so it’s safe to assume that the country stained windowed kitchen you adore has some other interested parties.Try to think of buying a home as a process of elimination. You’re progressively getting rid of options until you find the one that’s just the right fit.Providing your agent with a list of requirements from the start is a good way to get the ball rolling. Try not to be too restrictive, as you should be casting a wide net at first and refining as you go along. The perfect house for you probably doesn’t exist, but you’ll be able to find something great that you may not have previously even considered until you walk in and the “aha!” moment occurs.

3 – Utilize your agent

Communication is key here. You’ll need to effectively and efficiently communicate with your realtor so they can have a better understanding of how to help you. Help your agent narrow down listings that fall under the criteria you set from the beginning. By providing them with a list of questions and guidelines to follow, you’re guiding them along the process of figuring out the best houses/neighborhoods/HOAs that fit within your arena. It’s in your best interest to not have the same agent as a seller, so look around and ask by word of mouth to find an agent with a good reputation. Finding someone who lives in the same area you’re buying is really nice as well. They can help describe the location, good and bad areas, stuff to do, etc.

4 – Get that pre-approval

Pre-approvals are helpful because they’re dual purpose. First, they help you can serve as assurance to the seller that you’re serious about buying. Second, they set the stage for how far your money can take you. Knowing how much house you can afford will help narrow down your choices within a specific budget. Pre-approvals differ from pre-qualifications in that they mean that a lender has gone through your income, assets, and credit information to determine how much you can afford. Get pre approved early on so when you find what you like you can buy it quicker. If the market is low on inventory, you’ll want to have a preapproval ready in your back pocket so you can jump on a house you like with an offer quicker than those without.

5 – The important small stuff

Home inspections, appraisals, etc. They’re expensive and annoying at times, but it’s better to get them done than being stuck with a flawed house. Get good insurance, and make sure you’re aware of what’s being covered, and what isn’t. Are you in a flood zone? Get that flood zone insurance. It usually doesn’t become active until at least 6 months AFTER you’ve purchased it.When you first move into your new home, it’s easy to underestimate just how much it costs to bring your home to a “ready to live” state. You’ll want to look into a new home security system, change your locks before you move in, buy lightbulbs, ceiling fans..the list goes on. Make a budget for your upgrades and repairs and try not to fall into the “I need this done at move-in to be happy” mindset.You’ll need to channel your inner dad, and start collecting as many tools as you can get your hands on. Let’s face it, stuff breaks. When you own a home, you no longer have the luxury of calling Mr. Property owner to submit a maintenance request. It’s not getting fixed unless you’re the one that fixes it. Fortunately, most of this stuff is relatively easy to find in good condition through hand-me-downs. Garage sales, Facebook Marketplace, and Craigslist are some great places to find a nice bargain. A shovel for example, would be $5 at a garage sale, but $30 at Home Depot.

6 – To HOA or not to HOA, that is the question.

What is an HOA you ask? It stands for Homeowners Association which essentially is just a group of homeowners that typically live in a development (place where a single builder has designed and built an entire neighborhood).HOA’s equate to a fee which is charged to maintain the common areas of said neighborhood. In addition to these fees, there are usually rules about maintaining your property to a certain standard. HOA’s have the power to enforce these rules because they’re a mandatory stipulation to purchasing a home in their location. When you’re buying an HOA home you’re signing a contract stating you will uphold the rules established by their committee, and accept the fines if you don’t.As with everything in life there are pros and cons. Pros are you’ll most likely live in a neighborhood that is visually appealing where everyone has their lawn cut and doesn’t stash broken down trucks in their front yard like a bad episode of hoarders. This helps ensure that the homes and areas within the neighborhood are kept up to a certain quality standard, which also maintains property value. Cons are people tend to hate being told what to do and there’s a separate fee you’ll have to pay every month. You will also probably have to submit requests for approval to HOA committees if you want to make any major changes to your property such as adding a deck or whatnot.

7 – Research, research, research

There’s multiple channels available to you which provide information on each and every property you’d be interested in. Due diligence and through research for each property will help you sort out the homes worth seeing in person without having to step a foot through the front door.MLS Listing: MLS stands for Multiple Listing Service and serves as a database in which all property listings are held online. If you’ve used Zillow, Trulia, etc. – then you’ve used an MLS listing. Any property listed in the MLS or through a secondary source should have most of the home details available. Sometimes the information can be inaccurate, so try to verify through additional sources if necessary.County Records: Every county in the United States has a database of property listings with some information on there. Google search, “County Tax Assessor”, and you should be able to find a website where you can search for property records by address.Listing Agent: Most listing agents will have something called an “offering memorandum”, which is usually either a PDF or pamphlet with details about the listing. This usually applies more to multi-family and commercial agents, but it’s possible for single family residential homes to have as well. If you’re contacting the listing agent directly, don’t be afraid to ask them if they have any additional info on the property. Photos, current lease, rent and/or operating statement.Google Maps: Using Google Street View, you can scroll through the neighborhood as a virtual drive-by of sorts.

8 – Don’t feel the need to time the market

Think of housing as a long term play towards an investment. You’ll want to focus on buying for the house you want, rather than waiting to find that bubble. It’s really difficult; some would say it is impossible to accurately time the market, but we’ll break down some generalized categories that the real estate market can fall under. Buyer’s MarketA buyer’s market is when there is more inventory available for sale than there are buyers. Because buyers have more options available to them, not every home that is on the market is going to sell. This results in housing prices being driven down if say a house is on the market for longer than 6 months. Lower housing prices equals buyer’s advantage because they have their pick of the litter to choose from.Seller’s MarketsIn a seller’s market, it’s the opposite scenario. There are more buyers looking for housing than there is available inventory. Since there are fewer homes, almost all of them will sell and prices will be driven up due to high demand.Neutral MarketsNeutral markets are just that, neutral. The market is not skewed in either direction, and the buyer to seller ratio is more even. You can still find great deals in a neutral market, just as well as a house can sell for a better than average price. It just means that there are no extremes.

Want to know just how much house you can afford? Reach out to us here at Morgan Financial and we’d be more than happy to help you find out. Fill out the form below with ANY questions you may have, and we’ll reach out to you with answers.

[tcb_logo data-id-d=’10’ data-css=’tve-u-1723867d602′ class=”][/tcb_logo]

(321) 757-3570

5805 US-1, Rockledge, FL 32955