So much about buying your first home is very exciting. You think about painting and decorating, but you shouldn’t get so excited that you get ahead of yourself and make mistakes. Research shows that a common mistake for first-time buyers is purchasing a home that is too expensive. Today, Buy Rhode Island shares some tips to help you avoid those mistakes and find a home that makes you happy without burdening you financially.
Think About Investing First
If you are concerned about costs, consider making your first big purchase an investment property. You can purchase something larger and turn it into a rental property. You can live in one unit if you choose. Either way, all costs are tax-deductible, making the purchase significantly more affordable than just buying a home for yourself.
Hunt for a House You Can Afford
Before you start looking for homes, know what you can afford. Examine your financial situation with the help of a professional, and set a budget that will protect you from exhausting your income on mortgage payments and renovations. Get an idea of what kind of fixer-upper fits within your budget constraints. You should also work with a talented and experienced realtor who can navigate your wants and needs around your budget.
Consider Your Business
If you’re moving across state lines with your business, consider transitioning it to a Rhode Island LLC. A formation company can make the process quick and easy. That leaves you with more time to focus on finding the right place.
Get the Home Inspected
One of the most important aspects of buying a home is getting a home inspection first. You can save money buying a house “as is,” but consult with a lawyer first and get the home inspected. Buying a home “as is” means that you save on the upfront costs, but you risk spending a great deal on repairs if you go in blindly. Examine the land records with the guidance of your realtor and attorney to search for any potential red flags.
Find the Right Lender
Finding the right lender is an essential part of the home-buying experience. Few people have the cash on hand to purchase a home, therefore, you need financing. If you go the traditional route and ask for a bank loan, you need to work on your credit history first. Even then, you should compare lenders before committing to the terms of a loan.
Consider the more amenable route of talking to your family first. Mom and dad may be interested in helping out, especially if you are considering a rental investment. You can also search for alternative lenders online. They often have more lenient qualification standards, but beware of high-interest rates.
Make an Offer
When you find the home you want, the next step is to make an offer, but you can strategize to make it a winning offer. Get preapproval from your chosen lender and have your realtor handle the offer for you. Discuss with your realtor where you can be flexible. For example, could you offer a bigger down payment or go up slightly on your offer if necessary?
Know the seller so that you can sweeten the deal. If you know the previous owner spent years nurturing the landscaping with their own hands, stress that you will keep it in perfect condition. You can add personal appeal.
Maintain focus on your goals throughout the home buying process. Rely on professionals to guide you and heed their advice. Money-saving options are readily available if you approach the task of buying a home with patience.
If you need to sell your home quickly, contact Buy Rhode Island today!
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