Let’s face it, buying a home can be a very daunting and painful task. As a real estate investor myself, I know first hand the amount of preparation it takes in order to make the process as smooth as possible.
Here are 5 tips that I want to share with you that helped me purchase my first multi-family home.
Make sure your finances are in order.
You can begin by acquiring a recent copy of your credit score. For more information on how you can obtain a free copy click here. Make sure the information on your report is accurate, and address any questionable activity. Next, find yourself a suitable lender and
get pre-approved for a loan. Before getting pre-approved, your lender wants to see that your not living paycheck to paycheck, so make sure you have at least 6 months worth of mortgage payments in a savings account. This tactic makes you more attractive to sellers looking for a well qualified buyer, not to mention that this’ll give you the ability to make a serious offer when you find the right home.
Know the type of property you’re looking for.
Are you looking to purchase a single or multi-family home? Knowing exactly what you want is half the battle. Both property types have their pros and cons (more on this topic coming soon). Once you’ve decided on the type of property you’re looking to purchase, make sure you have a proper budget in place. If you need guidance on creating a budget make sure to check out our article Creating a Budget.
Hire a professional.
Even though the internet can provide buyers with unprecedented access to property listings and resources, I strongly advise you to hire an exclusive buyer agent that will have your best interest in mind. In addition, they will be of great help during the bidding process. There are many aspects of the buying process that require a certain level of expertise and you simply cannot get that by surfing the web.
Do your homework.
What state are you looking to buy in? Which neighborhood? How’s the school system in the area? Does this market favor buyers or sellers? These are several questions you need
to have a thorough understanding of. Take at least 30 days to track the average selling price of the properties in the area and how long they’ve been on the market for. Lastly, make sure you attend a few open houses on the weekends because online pictures tend to be very deceiving.
Get a home inspection.
Buying a home is by far one of the largest investments you will ever make. Therefore, you need to ensure that the home you’re purchasing is worth the investment. Find a good home inspector who can point out major defects and concerns on the property. Home inspectors can end up saving you thousands of dollars by pointing out any flaws and using that as leverage to negotiate prices.