Buying a home is a complicated process fraught with difficulties. If you want to make sure your home buying or building process is a success, there are some things you can do.
Step 1
Make sure your architect and builder have worked together before and get along well. Whichever one you hire first, ask him to recommend the other. Otherwise all of their little conflicts will cost you plenty. Before you choose either an architect or a builder be sure to check references!
Step 2
If a builder is designing your home, try to choose modest changes on a plan that has already been built. If using an architect, this is not the case. Bring a clear idea of your wants and needs. A good architect will design a plan that suits you better than any design in a cookie cutter plan book.
Step 3
Pay the builder as the work is completed. If possible, pay the subcontractors yourself. Otherwise you may fully pay the general contractor and have several liens on your home from unpaid subs. If he pays them directly, get proof of payment.
Step 4
Get pre-approved for a mortgage before you start to shop. Don't go for the highest amount you qualify for, always keep at least a 10% cushion in case unexpected things come up. 20% is even better.
Step 5
If you decide to work with a Realtor, interview them first & make sure they have experience in the area you're interested in. You also want to make sure you understand & can relate to each other. Having an agent work on your behalf is free since they sellers pay the commission & their agent will share their commission with the buying agent. Every buyer should work with a Realtor who can represent their interest & save you time & trouble with their knowledge & experience.
Step 6
On some sites you can search for your home using satelite images.
Step 7
Adjustable rate mortgages have been shown to have the lowest overall rate over the long run.
Step 8
Try to borrow for 15 or 20 years to greatly reduce your total interest paid. It will be a higher monthly payment, but less overall.
Step 9
Don't assume that buying is better than renting. If you will move in less than 5 years and homes are not significantly appreciating, your home is likely an expense and not an investment at all.
Step 10
Most buyers seriously under estimate the costs of taxes, insurance and especially repair. One bad roof, water heater etc. can be very difficult financially. Make sure you get all the numbers before committing.
Tips
- Go to your prospective neighborhood and sit in your car at midnight on Friday or Saturday. If it is too loud for you, then this is not the place for you.
- Be there when your home is inspected, talk to the inspector, and ask for tips.
