It's never been easy to purchase a home, but home shoppers today need an extra helping of guts and determination to survive in this scary, post-Crash environment.
If you've started looking around at houses to buy, you probably already realize that interest rates will soon be heading up, making now the perfect time to take advantage of the low prices and huge over-supply of single-family homes.
Even so, there are still plenty of pitfalls and hazards that can sideline your home search. Read on to learn the 3 best moves to make once you've decided to purchase a home. We call these Power Moves because they give you extra leverage and really set you apart from your competition for the best deals.
POWER Move #1: Give Notice to Your Current Landlord NOW!
Here's the nightmare scenario: You find a sweet deal on a gorgeous home. The seller is eager to accept your low-ball offer and the house is in perfect condition. Then you talk to your landlord and discover that your lease requires 60-day notice before termination, otherwise you'll forfeit your deposit and must pay other penalties. Meanwhile, your seller, who can't wait two months for you to close, finds another buyer for your dream home. Too bad!
What's worse is that this was entirely avoidable!
Start by talking to your landlord. Explain that you are trying to buy a house and want to be upfront with them. Then, find out exactly what your lease has to say about termination. There is probably a clause that requires 30- or 60-days notice.
Next, go ahead and give notice now. Right now. We recommend you send the landlord a one-page letter that explains your intention to purchase a home and gives formal notice. Then, begin your home search. Keep your landlord in the loop regarding your progress. Just before the end of the notice period, if you haven't found anything, send your landlord another letter that cancels your notice. Then, send another notice letter. Repeat this process until you found a home that you want.
We can hear the whining already: "But, what if my landlord fills my apartment and makes me leave?" That's why you must keep them in the loop. Let them know if you have a serious lead or not. Don't surprise them and they won't surprise you. Trust us: In this market no sane landlord is going to dump a good, paying tenant just because they gave notice.
POWER Move #2: Pull Your Own Credit Reports NOW!
You're going to have to qualify for a mortgage. Which means your going to have to talk to a loan officer. Which means they'll need to see your credit reports. Now, we believe in shopping around for the best loan deals, but it's crazy to have your credit pulled every time you talk to a new mortgage company.
Save yourself some time (and a few points off your credit scores) by pulling your own credit reports for free and saving them for easy reuse. To access your free reports, visit AnnualCreditReport.com. Be sure to save the reports to a PDF file format so that you can email them easily.
POWER Move #3: Start Looking at (Lots of) Homes NOW!
The only way to really understand what the home market has to offer is to look at homes. Lots of them.
Don't make the rookie mistake of falling in love with the first nice home you see. There are hundreds of houses out there. The more you see, the better equipped you'll be to decide what features you really need and want in a home. Seeing lots of homes will also help you recognize when you've come across a true gem, so you won't dilly-dally and lose out to a faster competitor.
Understanding these three truths should help make your home search more fruitful and less stressful for all parties involved. Happy hunting!
