Many first time Louisville home buyers are looking for tips for buying a home during a recession, particularly in today’s shaky economy. They recognize that it’s a buyer’s market right now and they know they should strike while the iron’s hot, however they’ve never bought a home before and aren’t really sure where to begin. Instead of end up like a lot of today’s homeowners who are looking at eviction and foreclosure notices they need to make certain they are doing the right thing and that they are doing it the right way. So here are some first time Louisville home buyer tips for buying a home during a recession.
The first thing you ought to do is visit your bank or lending establishment and get pre-approved for a loan. Not pre-qualified. All the pre-qualification process does is look at your income and subtract your bills and tell you how much you’d have left over to use for a house payment. You want to get pre-approved which means your bank will do the credit check, verify your employment and income, and take into consideration all your bills and credit cards. Then they will actually pre-approve you for a specific dollar amount. When dealing with your Real Estate agent this pre-approval will give you more credibility and let her know that you’re serious regarding buying a home. It will also help you when it comes time to negotiate the price. If the seller knows you have already been pre-approved he’ll often accept a little lower price because he knows he’s going to get his money faster.
When you have been pre-approved, sit down and make a list of all the the things that you have got to have in your home. Not everything that you want, but all of the things that you cannot do without. Maybe an additional bedroom or bathroom. Or the laundry room needs to be on the main floor. Specific things that you absolutely must have in your new home. If you are not really certain, why not do a search for available homes on the internet first? Most of them have great pictures so you can see all the features.
Then contact a Louisville Real Estate agent and give them your list and your budget. Be sure to let the agent know if you’re concerned about any particular neighborhoods or schools. Or maybe you’d like to live near work or other family members. The more information you can give the agent the easier it will be for her to find you just the right place to live.
When negotiating your price keep in mind your pre-approval amount. It’s usually a pretty high number compared to your income and you do not have to offer it all on a house. That’s just the maximum amount you can borrow. Bear in mind that you are also going to have additional expenses as a home-owner including taxes and insurance each year. First time Louisville home buyers who are looking for tips on buying a home during a recession should always consult with a Louisville Real Estate agent to get their expert opinions.
Learn more about Selling in a seller’s market. Stop by Theodore S. Lincoln’s site where you can find out all about Buying foreclosures and what it can do for you.
Tags: bank, credit, finance, Foreclosure, Foreclosure/Repossession, General Real Estate Tips, home, homeowner, REO