One of the most exciting times in a person’s life is when they buy a new home. Whether it is your first or fifth house, there’s nothing like the feeling of finding a new place for you and your family to call home. However, as many of life’s big events can be, it can also cause a lot of stress as you go through the process. From the financing to the search for the home to the moving, it’s no wonder that so many people become overstressed when they decide to buy a new home.
One of the ways to minimize the stress is to properly plan. This is not an event that should be taken lightly! Another important tip is to find the right professionals to help you through the process. This is not something you need to go through alone! For more helpful information, continue reading.
Financing Your New Home
“Qualifying for a mortgage today is more difficult than it was five years ago,” explains Michael Fecht, Regional Sales Manager with First National Bank. “Underwriting and credit guidelines are tighter as a result of the housing crisis and the man different regulatory attempts to reform housing and finance. Credit score requirements have increased and borrowers must be able to fully document all income and funds for down payment and closing costs.”
“Home buyers need to be proactive long before buying a home to make sure their credit is in good shape,” Michael Fecht continues. “Obviously, paying all obligations on time is critical, but so is clearing up any blemishes on their credit report (collections and judgments). Potential buyers also need to budget carefully and determine priorities. Lenders will be looking very closely at their debt-to-income ratios (typically, the mortgage payment plus all other revolving and installment debt payments should not exceed 45% of a borrower’s gross monthly income). Carrying excessive amounts of consumer debt may cause problems when financing a home. In some cases, it may come down to a house payment or a new car and the consumer may have to decide what is more important.”
When getting ready to explore financing options, it’s important to find the right professional to talk to. “Find a lender who will sit down with you and fully explain all of your options and answer your questions,” suggests Michael Fecht. “It is very important that you understand and have an active role in your home financing, just as you have an active role in choosing the right home. Your lender should be able to answer all of your questions and, after reviewing your unique situation, suggest alternatives that are best for you. Additionally, complete the pre-approval process before you start shopping so you know exactly what you can and cannot qualify for. Be patient during the lending process and be prepared to provide additional documentation throughout the process. With the tighter credit standards, there are many stages to the process and additional documentation may be required from your lender.”
“Our credit union provides the one-on-one support you need for all your home financing needs,” states Becky Brown, Mortgage Lender at Mutual 1st Federal Credit Union. “We take pride in understanding your financial history to build your financial future and we try to simplify the mortgage process and assist our clients every step of the way. We also try to make the loan process convenient and as quick as possible, too, as we know you want to achieve your dream of owning a new home in the shortest possible amount of time.”
Searching for Your New Home
Once you have your financing lined up, it’s time to start the new home search! This process often starts out exciting and fun, but can soon bog down as you sift through the numerous options, continually find homes you love but can’t afford or cannot find a home that suits all of your needs and wants. How do you go about viewing all the choices available and deciding on that one perfect home for you and your family? The process can be made much easier by working with a professional realtor.
Sarah Kuhlmeyer-Doty, Realtor with Prudential Ambassador Real Estate, says, “Working with a Realtor provides personal representation for buyers. You don’t buy a home every day, so it’s important to have an expert involved to guide you through the process. Also, buyers agents have interest only in the buyer, while listing agents have interest only in the seller. This means that after you have found the perfect home, your agent has the negotiation experience to help you get your home at the right price with the right contingencies for you.”
According to NP Dodge, Realtors can help you determine your buying power by referring you to lenders best qualified to help you. They also provide many resources to assist you in your home search. Sometimes the property you are seeking is available, but not actively advertised in the market and your agent will work to find all available properties. In addition, your Realtor can assist you in the selection process by providing objective information about each property as they have access to a variety of informational resources. Once you’ve decided on a home you’d like to purchase, your Realtor can help you negotiate and provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your Realtor can assist you in finding qualified, responsible professionals to do most of these investigations and provide you with written reports.
Looking for new homes can be overwhelming, especially if you don’t know exactly what you are looking for. It’s important to sit down with your family (and your Realtor) and come up with what is most important to you, including factors you can’t live without, those you would like to have in a new home and those bonuses that won’t be deal breakers, but that might help you make the decision between two homes you are considering. When making this list, make sure to consider not only where you and your family are in your lives right now, but also where you will be in the future. It’s possible that you are choosing the home you will live in for the next ten to twenty years, and your lives may look very different at that time.
Some things to consider are:
–Are you planning on expanding your family? If so, how many bedrooms will be necessary?
–Are you reaching the ‘empty nest’ stage? If so, will you need as many bedrooms as you currently do?
–Do you need room for hobbies or a home office? Will these needs be changing in the future?
–How important is energy efficiency? Do you want to move into a home that already has energy-efficient features?
–How important is location to you? Would you be willing to settle for a home that did not have all the features you wanted if it was in the ideal location? On the flip side, would you be willing to sacrifice location if the home was perfect in all other ways?
–Does anyone in your family have health issues? If so, would you prefer a home all on one level to avoid navigating stairs?
–Is there someone in the family who is capable of snow removal and yard work, or would you be more comfortable in a home where this is taken care of by a neighborhood association?
Many times, when you are looking for a new home, you also have a home to sell. Realtors are extremely important in this process as well. “By working with a Realtor to sell your home, you not only receive maximum marketing exposure by having it listed on the Multiple Listing Service, you are also protecting yourself and your family,” says Sarah Kuhlmeyer-Doty “Real estate contracts involve a number of very strict legalities. You must be sure that you are providing the buyer with the contingencies they have a right to, including a home inspection, radon and mold tests, seller property disclosure, closing at a qualified title company, and more. In addition, by listing with a Realtor, buyers that tour your home will have accompaniment by your agent or another Realtor while looking at your home. This allows you to feel safe in knowing your home is in good hands, as all Realtors are bound by a code of ethics to ensure the safety and well-being of all parties involved.”
NP Dodge also has some good information on why working with a Realtor when selling a home is a good idea. A Realtor can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and conditions of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle. Your Realtor can also help you objectively evaluate every buyer’s proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing. Your Realtor can help you write a legally binding, win-win agreement that will be more likely to make it through the process. Between the initial sales agreement and closing (or settlement), questions may arise. Your Realtor is the best person to objectively help you resolve any issues and move a transaction to closing.
After Your New Home is Purchased
Once your home is purchased, you may think all of your work is done, but sometimes it’s quite the opposite! One stage of the process is over, but another has begun.
Depending on what shape your new home is in, you may want to do some repairs or redecorating to it before you move all of your belongings in (if possible). Working with professionals to help you with these projects is always the best way to go as it involves the least amount of hassle and ends with the best results. “We have our Patches Xpress that can handle any minor repairs or prior to move-in,” says Nancy Sempek with Christensen Drywall. “We can also be a part of any remodeling project that the homeowner wants done prior to move-in.”
If you’re looking at redecorating, consider using the services of a professional in the industry. “We help people make color and finish selections when redecorating a home,” says Amy Boesen with Décor & You. “This process can be overwhelming for some as there are many decisions to make. We help them make sense of the options available and how to achieve a cohesive look. This can include everything from selecting paint and stain colors to flooring, hardware, fixtures and many other things.”
Amy Boesen goes on to say, “Often when moving into a new home, a homeowner’s existing furnishings don’t fit just right, there aren’t enough of them or they aren’t suited to the style of the new home. We create floor plans to show them where their existing furnishings would work and where new pieces might be needed. From there, we create a master plan—window treatments, accessories, furniture, area rugs, lighting, etc. and we begin to implement the plan either all at once or in stages. Our clients purchase products that have been sourced for their project from trusted vendor partners. Our passion is transforming their new house to the home they love to live in.”
Once you are ready to move everything in, it’s often a good idea to work with a professional moving company. Not only will they help you pack everything (and keep it safe during the move), but they can also take care of the heavy lifting so you or your family members don’t injure yourself trying to move a large appliance or piece of furniture. With the proper direction, they can place everything in the rooms where they belong, making unpacking and getting everything situated in your new home much easier. When choosing a moving company, make sure you are not just going on price alone. These people will be in your new home and you want to make sure they are from a reputable company that does the proper background checks and has the appropriate hiring processes in place. You may end up paying a bit more to hire a quality company, but it will be well worth it to protect your home, your belongings and your family.
The process of buying a new home is an exciting and often stressful one. By working with the proper professionals, you can keep the process as stress-free as possible and find the home of your dreams.