People find themselves in different circumstances throughout their lives, and owning a home might not fit into the plans for a given person at a given time. However, for most folks, buying a home at some point in their lives is the smartest financial decision they will ever make. If you come to the conclusion that you're ready to invest in your future and buy a home, I hope you'll consider the following advice.
Some people are trying to "time the market" and wait for the absolute best prices. This strikes me as risky and a little short-sighted. Good interest rates are currently available, so why not act now and start building equity? If you wait another year, and the price of the home goes down a few thousand dollars, but interest rates are half a point higher, what have you saved? Nothing. In fact, had you purchased, you'd have a year's worth of mortgage-interest tax deductions and a 12-month head start on building equity.
You may hear that you need to get pre-qualified for a loan, and that's a first step, but getting pre-qualified doesn't guarantee that you'll be approved for the loan. A pre-approved mortgage assures everyone that your finances have been verified. This lets the seller and his agent know that you're a well-qualified buyer who is serious about purchasing a home and that your offer is to be considered legitimate. There are many different kinds of loans that are available, so be sure to review all options and choose the one that's best for you.
Real estate transactions have become increasingly complicated, and making wrong decisions can end up costing you money, now and later. Because buying a home is probably the most expensive purchase you will ever make, having your potential purchase inspected is a must. The cost of hiring a home inspector is miniscule relative to the overall cost of the home. Don't ever buy a home without getting an inspection.
Also remember, that while it's not necessary, it's to your advantage to work with a buyer's agent – someone who will act as your advocate and who has a thorough understanding of the real estate business. An agent you hire has fiduciary obligations to you, which means that he/she is compelled to look out for your best interests. Not only will he/she help you find the best home and negotiate on your behalf, he/she may have recommendations for a lender, inspector or other industry professionals.
Once you've made the decision to have professional representation, be sure your agent is a Realtor. Many people think that the terms Realtor and real estate agent are synonymous. They're not. Only those agents who belong to the National Association of Realtors and pledge to adhere to a strict code of ethics may call themselves Realtors. Your Realtor will look out for your best interests and help you find the home of your dreams while helping you avoid making mistakes you might later regret. To find a Realtor, visit the Collin County Association of Realtors' "Find a Realtor link" on our Web site, www.ccar.net.
