10 Valuable Homebuying Lessons

When it comes to parenting, teaching home skills is considered a major part of the job. But while their kids may know how to cook a steak or fix a leaky pipe, the basics of actually buying a house are frequently overlooked.

For most people, a home is the biggest and most significant purchase they'll make. Are you ready to take that step? Here are ten lessons your parents never taught you about buying a house.

1. Consider Location
   We've all heard the #1 mantra of real estate: "Location, location, location." Even so, when buying a house, many people minimize the importance of location and focus on the home itself. The right location affects lifestyle as well as the property value. Is it worth owning a larger home if you have a long commute to work or you're far from services and amenities? Establish priorities first.
2. Set Your Budget
   Don't confuse pre-qualification limits with a budget. Lenders will often give you pie-in-the-sky numbers without knowing how comfortable you are with debt and other criteria specific to your situation. When calculating your budget, don't forget to allow for related expenses such as closing costs, mortgage interest, and insurance.
3. Check Your Credit Score
   While FHA and other government-backed loans may accept slightly lower numbers, traditional lenders generally require a minimum credit score of 620 for mortgage approval. In addition, the higher your credit score, the lower the interest rates you can qualify for.
4. Put Down as Much as You Can
   It's tempting to go with a mortgage that requires little to no money down, but you'll end up regretting it in the long run. A standard 20 percent down payment reduces your monthly obligation and gives you equity upfront.
5. Get Pre-Approved
   Pre-approval is a more precise, in-depth process than pre-qualification. It spells out exactly how much a lender is willing to give you and lets sellers know you're not just a lookie-loo.
6. Use All Five Senses
   Appearances can be deceiving, so go beyond the surface. You're buying a house, not touring a museum. Don't be afraid to knock on walls, look in closets and cabinets and investigate odd sounds and smells.
7. Operate on Your Own Schedule
   If you're not ready, don't let someone else's timetable sway you. Despite what anyone may tell you, there will always be more houses on the market. "Last chance" is a myth.
8. Don't Ignore the Exterior
   Some homeowners sink all their funds into the house itself, neglecting landscaping and other outside features. Upgrading the yard, garage, and home exterior can be just as expensive as indoor remodeling.
9. Be Flexible
   Buyers sometimes have a misconception that bidding on a home is a cut-and-dried process. Everything is negotiable, but keep in mind you should be prepared to give something in order to get something. If you find yourself on the losing side of several bids, reexamine your strategy and make necessary adjustments.
10. Seek Professional Advice
    Successfully navigating a real estate transaction from start to finish is challenging, especially if you're a rookie. The experience and know-how of a professional real estate agent are invaluable in terms of the time, trouble and money they can save you.

Buying a house is serious business, but it doesn't have to be scary. As with most worthwhile activities, preparation makes all the difference.

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