64% of American millennials report that they have at least one regret about purchasing their home. Buying a new home in Raleigh is an exciting step to take, but there are many common mistakes that people make that lead to buyer’s remorse. By learning more about these mistakes, you can learn to avoid them and make better real estate investments.
Do you want to learn more about buying a new home? Keep reading this article for the top tips for buying a new home in Raleigh, NC.
Research the Buying Process
Researching the buying process is one of the first steps you need to take when you are buying a new home. This is especially important for first-time homebuyers, as this research can help you find the right home, lenders, and more.
What are the steps to buying a home? These steps to buying a new home include a mortgage application, determining how much you can afford, and more.
If you need help with the home buying process, you may want to work with a real estate agent. They can help you with every step of the process and can help you choose the right home for your needs.
Save For a Down Payment
It is also important that you save for your down payment before you start looking for homes to buy. This is how much you are expected to pay when you close on your home. The rest of the payment will be covered by your mortgage lender.
A general rule of thumb a lot of people have is to get 20% for your downpayment. This will make it easier for you to get approved for a mortgage with a good interest rate. Plus, you will not have to pay mortgage insurance once you have paid 20% of the loan.
However, many programs require much less for a down payment. In fact, you can put down as little as 3% for your home. Make sure you have this money saved and set aside for when you are ready to purchase real estate. Make sure you understand what factors go into interest rates for home mortgages.
Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage is something else that will make it easier in buying a new home in Raleigh. When you get pre-approved for a loan, it shows you how much money your lender is willing to offer you when you purchase a home.
This way, you will know exactly how much you can afford when you are purchasing a house.
When getting pre-approved for a mortgage, your lenders will consider your financial situation. This includes how much money you make, how much debt you owe, and how much you have in cash reserves.
It is also beneficial because it shows people selling a home that you are a serious buyer who is financially prepared to make an offer on their home.
Choose the Right Location
Location is one of the most important things you need to consider when buying a new home in Raleigh. While you can make upgrades to your home, you will be stuck in the same place forever. Because of this, you cannot sacrifice when choosing the location of your new home.
Plus, the location of your new home will be a determining factor in the price of your home, the potential to appreciate, and more.
When you are considering the location of your future home, you should make sure it is in a good neighborhood. This will make it easier for you and your family to fit in when you buy a home in an established community.
Similarly, you must consider the school districts in the area, nearby shopping centers, proximity to your workplace, and more. When you prioritize finding a good location, it will make it much easier to sell your home in the future and it will make it a more enjoyable place for you to live.
Get a Home Inspection and Appraisal
Getting your home inspected and appraised may not seem that important, but it is a necessity for anyone that is investing in real estate.
When you get a home inspection, they will help you by inspecting each of the components of your home. They can identify immediate problems with the structure of your home and can even tell you which areas may lead to potential problems in the future.
By getting a home inspection, you will have a written report and recommendations for how to proceed. This will give you more negotiating power when you are buying a resale home. Plus, it will help you plan and budget for expenses that you will have in the future.
An appraisal is another important tool to help you evaluate the value of a home before you purchase it. Someone that your lender hires will examine the house to see how much it is worth. This way, you can see if you are overpaying, and can help you negotiate with your seller.
Consider Storage Space
Something that many people fail to consider when buying or building a home is the storage space. If you are moving from a different house, you need to make sure all of your belongings will fit without having to squeeze everything inside!
When you are searching for a new home or starting the process to build a home, you need to set expectations and understand how much room you need. Even if a home doesn’t have enough current storage space, there may be some changes that you can make to utilize the space you have more effectively.
Find the Right Lender
Another vital tip to follow when you are buying or building a home is finding the right lender to work with. This will help you be more prepared to buy a home and can help you find the best loan for your mortgage.
You should start by comparing the rates from many different mortgage lenders. This will help you compare costs and choose a loan that is best for your financial situation. Still, you should consider more than just the lowest rate when finding a lender.
Meeting with several lenders will help you find one that fits your specific needs when you are buying a home.
Research New Construction vs. Resale Homes
There are many options for new homeowners, including resale homes or new construction home. Each of these options provide different benefits and drawbacks for people buying a new home in Raleigh NC.
When you buy a resale home, you can move in immediately. However, you might have to settle on certain aspects of your home. For example, you will not be able to make changes to the layout of the home, the location, or any other permanent structural features.
On the other hand, new homes have many additional features that make them a great choice. For example, they will require much less maintenance compared to resale homes. When you work with a custom home builder, you can also add whatever features you want to your new home.
When buying a new build home, it is important that you thoroughly research your builder. This will ensure that you get the best quality homes in your area. You can check out online reviews and testimonials for each company that you are interested in.
Many builders will provide an online portfolio of the homes they have built in the past. This way, you can be sure that their building style matches your needs.
Visit the Home
Finally, you should visit the home before you decide to purchase it. Many people recommend visiting the home during rush hour. This way, you can learn more about traffic patterns and make sure you live in an easily accessible location.
You can even test out your commute to work to make sure it is not too unbearable.
Visiting the home in person will also help you learn more about the benefits and drawbacks of the property.
Even if you are building a new home, it is important that you do a final walkthrough before you close. This allows you to inspect the home to make sure everything is in working order. If you notice any issues, you need to alert your builder before closing.
Buying a New Home in Raleigh NC? We Can Help
When you are buying a new home in Raleigh NC, it is important that you do plenty of research before jumping in. This way, you can find the best home that meets all of your needs. To make the home buying process much simpler, you can follow this buying a new home checklist.
Do you need help buying a new construction home? New Home Inc. can help! We offer cutting-edge new homes in Raleigh, NC, and can help at any stage of the home buying process.