Purchasing a home is a major investment, both in time and money. A mortgage is something you will be paying for a long time with fixed payments required every month for 10-15 years on average. Potential homeowners need to be sure that their financial situation is secure enough to handle such a long-term payment plan, and that they are ready to take on the commitment of such a serious investment.
Once potential homebuyers are ready to take the plunge, they will soon find out that owning a home is a worthwhile investment that can strengthen their credit and, in the future, should they choose to resell their property, perhaps even make them a profit. However, there are some crucial things for homeowners to know (http://www.cbsnews.com/news/9-smart-home-buying-tips/) in order to relinquish these benefits of real estate.
No home is perfect
Every homeowner is looking for that ‘perfect’ luxury homes for sale in Los Angeles or anywhere in their preferred locations. The one that checks off every box on their wish list, right down to the correct color of paint on the walls. But the important thing for potential buyers to remember is that a home is an investment in more ways than one—financially and personally. Although a home may not have every desirable aspect, there is room for improvements. Small improvements such as changing the color of paint on the walls are easily made, and even more intricate changes such as switching out kitchen appliances are still a relatively simple fix. Not only will custom additions and deletions be personal investments in property (the homeowner can make it exactly as they want it to be—their ‘perfect’ home), they will also be financial ones. Once homeowners make renovations to the home, they are considered improvements, and will thus raise the resale price.
If a few minor changes are all that is stopping a potential buyer from investing in a great piece of property, it is important for them to sit down and think through the benefits of purchasing the home and how they may be able to make changes to customize it to fit their wants and needs.
Pre-approval is the way to go
So you’ve crunched the numbers and you’ve decided that the monthly mortgage payments for your dream home will fit into your budget. So you’re good to go, right? Unfortunately, it’s not that simple. In order for homebuyers to be able to actually invest in luxury real estate, they need to be approved for a mortgage. This can happen two ways: The buyers can find a home in the price range they believe to be acceptable, and then move to have the mortgage approved, or they can be pre-approved for a mortgage and then work on searching for a home. The first option comes with a lot of hassle and potential disappointment, especially if you’ve already found the home you want to buy, only to have the bank tell you that that mortgage is not in your price range. By being pre-approved before finding a home, homebuyers can ensure that they are meeting their financial capabilities and are getting rid of some of the stressful paperwork so they can focus on enjoying the process.
Always inspect the unexpected
The inside and outside of a home can look well kept, but it’s often the structural parts that can be an underlying issue. It’s normal to find a couple of discrepancies during an inspection—nothing is perfect. These types of things are easily fixed with an adjustment to the agreed upon price of the home, so potential buyers need not be discouraged. However, it’s the larger issues such as mold, foundation damage and other structural issues that need to be caught before homebuyers place their offer. Having a qualified professional conduct an inspection on your new potential home will not only ease your mind (and prevent a major headache), but it could also save you a ton of money in the future.
Purchasing a home is a great investment both financially and personally. While the process of purchasing a home should not be taken lightly, potential buyers should also remember that the process can be fun. By following the proper precautions and taking the smart approach to home hunting, owning property will be a piece of cake.
