Dejon's Buyer's Tips

Preapproval

Your first step in shopping for a new home is to get yourself preapproved. Being a mortgage-preapproved buyer will give you a great advantage when you are ready to buy. Preapproval will determine the maximum you can spend on a house before you even start shopping. It is the equivalent of a cash offer. Usually sellers are more willing to accept a preapproval offer over an offer for which financing is still pending. Once a seller signs a contract with a buyer, the contract generally allows the buyer 10 days or less to secure financing. If the buyer fails to secure financing within that period, the seller may drop that bid and possible accept someone else's bid. This is why preapproved buyers have such an advantaged; they already have approved financing, they can rush the closing if the seller is in a hurry to deal, and preapproval gives the buyers a bargaining power. Don't take a chance that could cost you the house you really want. Get preapproved and feel confident when you're ready to make a bid.

Characteristic List

Make a list of 10 things that you are hoping for in your new home. For example; location, price, square footage, size of lot, size of the kitchen, etc. If you can find a home that has at least 6 of the 10 items you were looking for you are well on your way to locating a home that will meet your needs. It's not often you will find a home that will give you all 10.

Home Viewing

When you have located a home that you think might be the one, visit it several times before making your final decision. Each time you visit you'll notice different things, including flaws that you didn't notice when you first fell in love with the home.

Have the Corners Flagged

Whether you are purchasing a home within city limits or out in the rural countryside you should negotiate to have the corners or boundaries of the lot located and marked by a licensed surveyor. Sellers, buyers, or both can pay the cost of the survey. It's not a good idea to have the owner point out which trees mark the boundaries. Often those boundaries have only been agreed upon by various neighbors over the years. Those verbal agreements could possibly have no relevance to your actual property lines. It's best to find out the property's boundaries before you take possession of the property. You would not want to move your future fence or possibly your garage.

Review the CCRs

If the home is located in a subdivision you should read the developmental covenants, conditions, and restrictions (CCRs) very carefully. CCRs specify what you can and can't do with your property. The same is true if you're buying a condominium. Find out your legal rights and obligations as well as what your association fees entitle you to.

Look at Style vs. Substance

When shopping for homes consider the difference between style and substance. Substance are things that can't be changed. This can include location, lot size, traffic…etcetera. Style, on the other hand, represents easily changed things such as carpet, painting, wallpaper, window coverings…etc. You should choose a home with good substance. The style of the home can always be changed later to suit your taste. Don't focus on the interior decorations of the seller, but rather view it as being vacant or full with your furnishings.