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If you have put your house up for sale or recently sold to a We Buy Houses company in Hampton Bays, NY, you may wonder what your next steps are. Whether you are a veteran of home buying or a new homeowner, you will benefit from this list of tips to buy a home in Suffolk County.
These tips include creating a list of must-haves, deciding on a budget, raising your credit score, reviewing mortgage options, getting pre-approved for a loan, having the home inspected, and paying mind to closing costs. Read these tips so that you can prepare to buy your new home in Hampton Bays, NY.
Create a Must-Haves List
If you don’t know what you’re looking for when you start looking to buy a home in Suffolk County, you will search every open house and never find one that will satisfy you. Before you look for a home, create a list of must-haves in a house. Do you have a specific school you would like your little ones to attend? Is open-concept necessary? Do you need an extra bedroom that you can turn into your office or a relaxation room? No matter what you desire, you need to know where to start.
Sit down with yourself or your family and write out a list of everything you want in your dream home. After you finish your list, look at it and decide which wants are feasible. Chances are, you can’t make everyone happy. Determine which must-haves you can live without, so you can create a list of perfect house features that you could find.
Decide on a Budget
Now that you know what you want in your new Hampton Bays, NY home, you need to determine how much you can afford to spend. It will help if you have sold your home to a buyer or a We Buy Houses company already, so you have some extra cash to spend. Determine how much you make in a month and your current bills. Then, based on that, see how much you can afford to spend on a house. Make sure you allow yourself space to buy food and have a little extra spending money each month.
Once you have determined your budget, look around at the houses in your area with your desired features. Is your budget in line with the houses in Suffolk County? If the house lies outside of your budget, reconsider your list of must-haves and what you can take off.
Raise Your Credit Score
Getting your credit score in check is one of the most important aspects of buying a house in Hampton Bays, NY. Your credit score is more than just a number: it can determine whether you get approved for loans and how much interest you will have to pay. The higher your credit score, the lower the interest rate, and the less you’ll pay in the long run.
So, keep an eye on your credit score. There are several websites that you can use to check your score without damaging it. Some ways you can raise your score include using your credit cards, paying your bills on time, and avoiding closing any cards.
Review Mortgage Options
Once you raise your credit score, you can start preparing to get a mortgage loan. There is a lot to consider here, as there are multiple types of mortgages that you can apply for: a conventional loan, FSA loan, VA loan, and an ARM loan.
A conventional loan goes through a private lender rather than the government. You can get a down payment as low as three percent with a conventional loan.
An FSA loan, or the Federal Housing Administration, is for low-to-moderate-income home buyers and can have a down payment as low as three-and-a-half percent.
A VA loan is one offered by the Department of Veterans Affairs that is exclusive to veterans. This loan usually requires no down payment.
Finally, an ARM mortgage, or an adjustable-rate mortgage, has low interest rates and a low initial monthly income. They can offer a 15-30 year mortgage that balances the interest rate based on how much you borrow.
Get a Pre-Approval Letter
Before you start the process of buying a house in Hampton Bays, NY, you should get a mortgage pre-approval letter. Already having this letter shows home sellers that you are serious about purchasing a house. The pre-approval letter tells you how much money you can take out for the loan so you better understand your budget and how much you can afford. This is important to know before you start looking, so you don’t break your heart by falling in love with a house you can’t have.
Have the Home Inspected
Before you move into your house, you need to have the new Suffolk County home inspected. You never know what issues may hide in the house’s walls: previous flood damage, asbestos in the walls, or lead paint. You want to avoid any unnecessary surprises before you move your life into the new home. Make sure you’re investing your money wisely by having the home inspected.
Remember the Closing Costs
Finally, the last of the tips to buy a home in Suffolk County is to remember the closing costs. While you may believe that buying the house is the only expense you have to worry about, along with paying for a real estate agent if you get one, there are closing costs at the end of your home buying journey.
You have to pay these fees as you finalize your mortgage. Some fees include attorney, pet inspection, appraisal, and title insurance expenses. You can expect two to five percent of your total loan cost in closing costs.
If you have just sold your home to a We Buy Houses company and are searching to buy a new home in Hampton Bays, NY, you need to read these tips to buy a home, so you know what to expect. There are many things to consider before you start looking and make your final decision: create a list of must-haves, set your budget, raise your credit score, review mortgage options, get a pre-approval letter, have your home inspected, and remember the closing costs.
If you still need to sell your old house, call a We Buy Houses company, like V Buys Houses at 631-294-7698. We can help get cash in your pocket and move into your new house in no time.