Setting Expectations

 

A wise man once said “Nothing worth doing is ever easy”. If you expect to find your dream home by taking a walk around your block, spotting the perfect house, signing on the dotted line and moving in the very next day, you’re probably on the short road to disappointment.

 

Finding the right home at the right price takes work, lots of it. Buying a home is the single largest and most important purchase most people undertake in their lifetimes.

This is where setting expectations comes into the home buying process.

 

It’s extremely important to know what you want, and to have a realistic idea of how to get there. The average home buyer takes anywhere from three to six months of diligent searching, negotiation, and financial positioning to walk away with a set of keys.

 

Some of the things to think about:

If you’re someone who knows how to do home repair, or has friends or relatives who’ll give you a deal on the work they do, you may be willing to settle for a property in less than perfect condition. Many foreclosures fall into disrepair because their former owners couldn’t maintain the property. If you can’t make your mortgage payment month to month, you’re probably not putting money into keeping up the lawn or fixing that leaky roof.  If you expect the home you move into to be in pristine condition, odds are you’re going to be looking a little longer.

 

In the current financial market, home loans are going to be harder to come by, especially if you have a poor credit history or nothing to put towards a down payment. Save as much towards your down payment as you reasonably can, and pay off as much outstanding debt as you can manage. If you can only do one but not the other, paying off debts in a timely fashion
improves your credit score, giving you more favorable rates on your mortgage, and takes pressure off finding the cash to make those mortgage payments once you are in your new home. If you expect a lender to give you the money to move into a new house with no proof of a job, a shaky credit history, and no money for a down payment, odds are you’re going to be turned down.

 

For the prepared home shopper, the inventory of available property is at its highest level in decades. If you expect to spend some time making phone calls, driving around neighborhoods and making choices about whether you want the house with the cracked chimney within walking distance of the great school, or the great price for the home that means a longer commute, now is one of the best times in recent memory to buy a home.

 

This has been Real Estate Rob putting you on the Inside Track to home ownership.