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New Home Buying Tips

New Home Buying Tips

Purchasing a new home is often the largest financial decision any person will make and because of this can be an incredibly stressful time for most new home buyers. It can also be an incredibly fun time due to the excitement of looking at various properties and keeping an eye out for your dream home. Like any big decision, the more informed and prepared you are the better off you will be to understand the process and overcome any obstacles which may pop up.

Fortunately, there are numerous resources available to assist in the home buying process and the easiest way to get started is to go online. Many real estate websites from national brokers list current homes available in your area or for the area you'd like to live which can get the ball rolling in finding your perfect home. These systems use what is called the Multiple Listing Service also known as the MLS. This is a unified listing service which helps real estate agents and home buyers point which homes they would like to look at when out and about. Normally only licensed real estate agents have direct access to the MLS but many online websites reference the same listings so average users can find their dream home.

When doing the initial home search it is not only important to understand what type of home you want a live in but also how much home you can afford. Do you want to live on a cul-de-sac or through street? Do you want to live on the west side or east side of town? Is there a school close to the home for your children? All of these questions are important but none of them will matter if you don't know what you can afford. As part of the initial process it is good to speak with your local bank or credit union to see what you qualify for in terms of a mortgage. If you find out based on your annual income and debt to income ratio that you qualify for a maximum of $150,000 mortgage then you will know what you can purchase when conducting your search.

At this point you know how much home you can afford and can use that information with online searches to narrow where you want to live. It might be a good time to contact a realtor to speed up the process and take you on some tours. A good realtor will point out the pluses and minuses of any location you consider. It is not only important to take into account the layout of the home and the quality of the materials used but also its location. You can always upgrade cabinets or counter tops, landscape the backyard and remodel a bathroom but it is not realistic to physically move a home. It can't be stressed enough how important location is when purchasing a home. It will affect your commute to and from work as well as what you do on the weekends. Having a home next to high-traffic areas or in traffic bottlenecks could severely impact your level of enjoyment regardless of how much you like the home.

Pre-existing homes have a different set of concerns from new homes such as disclosures, termite damage and home inspections. Normally new home purchases only involve what type of appliances are included and what type of upgrades are to be applied. This does simplify the home buying process as some of the concern is taken out of the picture due to it being new construction. Most everything will be under warranty for some period of time including appliances and construction. But as with both types of purchases some things are consistent such as closing costs.

These are just some of the new home buying tips which should be considered when purchasing a new home. Once the excitement has lessened and the adrenaline rush is dissipated it is important to regain your focus and keep the most important aspects of the new home buying process in mind. Ask lots of questions and don't sign anything until you are absolutely sure what you're getting into. And most importantly, if you are unsure about the home then keep looking. There is no rush when purchasing a home so don't let the fear of a home going off the market or being sold pressure you into buying something that isn't perfect for your situation.

Image by: Photo Dean