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4 Steps For Planning A House Hunt

Hunting for a house — the right house — can be beyond stressful. You may have a whole list of criteria, from schools for your children to commuting options to get to work. And if you don’t get it right, you can be stuck. Once you’ve bought a house and moved in, you’ll be looking at a painful financial situation if you want to move right out again.

While you are looking at houses, you need to focus on the pros and cons of each individual property, rather than focusing on more general issues. To remove some of the worry of house hunting — and save money in the long run — complete these four steps before you even look at a single ‘for sale’ sign.

  1. Get preapproved. Preapproval for a mortgage means that you know exactly the amount of money you can spend on your new home. You won’t waste time  and effort on homes out of your price range if you know just what sort of mortgage you can get. Furthermore, many people don’t know their credit score off the top of their heads, let alone the amount a lender will give them for a mortgage. That includes me, by the way. Rather than guessing, you should know.
  2. Make a wish list. Before you start looking, it’s worthwhile to make a list of exactly what you’re looking for. Dream big: list all the qualities you want in a home, and then prioritize. You might also want to note which items on your list are things you can change in a house that meets most of your other needs. I, for instance, have a preference for energy efficient homes — but I can make the average house more energy efficient with a little time and money.
  3. Know the market. There is an amazing amount of real estate information online for every zip code in the country. Do some research: recent sales prices, neighborhood statistics, market trends — even where the local landmarks are in relationship to your preferred area. Even if — especially if — you are unfamiliar with the area in which you’re looking for a home, you should research your potential neighborhood thoroughly. You might even go to the effort of contacting people living in the area to get their impressions of specific locations.
  4. Discuss your expectations with your agent. If you are working with an agent to find your new home, you should do your best to tell your agent exactly what you are looking for in a home. Agents want the process to move as smoothly as you do, and if they know your spending limit and what you are looking for in a home, they’ll avoid showing you houses that don’t meet your needs. Both you and your agent can save time with a little communication.

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This article was written by:

thursday - who has written 98 posts on Wealth Junkies.

Thursday Bram is a freelance journalist of over five years experience. Her work has focused primarily on personal finance and small business topics. She's also worked in both property management and real estate. More information about Thursday is available at thursdaybram.com.

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