Handling House Shopping Stresses

by Margareth Montenegro

Whether you are a first timer or seasoned homebuyer, shopping for a house can be nerve-racking. The bouncing from house to house, dealing with realtor agents, mortgage brokers, and lenders, can drive you to pull your hair out. To handle such stressful situations it is a good idea to be prepared by educating yourself how the housing market works. Once you understand how this market works, you will be able to relieve most of the stress associated, with searching for a house.

You have decided this is the year you are going to buy a house. The first thing to do is to write down what you are looking for in a house. Figure out the type of house you would like, such as a single family, a townhouse, or a multifamily. Decide what amenities and attributes you want your house to have. Write down a list of needs and wants, that you care for in a house. Keep the two separate, because sometimes your wants get in the way and pass on an opportunity of a good home that covers your needs. Once you have a house you can always plug in your wants. By writing down plans for the ideal house you avoid wasting time looking at houses you do not care for.

As you write down what you are looking for in a house, look at where you want to live and the surrounding areas. Drive around neighborhoods you are interested in and see what catches your attention. Look up information such as crime statistics, schools, public transportation, dining, cultural events, etc. Researching this information can help you decide if you are looking to live close to anything or maintain a distance. Compare all the neighborhoods and look at the pros and cons, you do not want to have any regrets. Take a look at other houses in the neighborhood to see if they are well maintained. You may want to live in a place that is close to your job but it is not a good area to live in. If you see bars on windows throughout the neighborhood, then consider looking at surrounding locations although your commute can take long. Remember that location can determine the pricing and eventually the value of a house you would like.

Understanding the housing market will be one of the most vital things to learn about. Look through realty magazines, newspapers, and the Internet to learn about the housing market. Once you are familiar with the market, you will know how much houses are selling and then compare to narrow down where you want to live. You can get information on how much a house in certain neighborhoods will cost you monthly with utilities, maintenance and taxes. You will be able to understand what Private Mortgage Insurance (PMI) means, what types of mortgages available such as fixed-rate, balloon, jumbo, and adjustable rate. You will learn what are pre-qualified loan and pre-approved loan and the difference between them. Getting familiar with the housing market makes it easier for you to set a budget and prepared to ask questions.

Prices on housing can be overwhelming. Thinking about how you are going to get the money to pay for one is stressful. After doing research, you will know how to save money by eliminating unnecessary expenses, estimate how much you can afford, and how much you will be able to borrow. It is important to relieve the burden of buying a house that is out of your budget. As a general guide, your monthly mortgage payments should be less than or equal to a percentage of your income, about a quarter of your gross monthly income. Also, your income, debt, and credit history determines how much you can borrow, according to Freddie Mac: A federal home loan mortgage corporation. You need to get your finances in order by getting a credit check. Lenders recommend to check your credit with three credit reporting companies: Experian and Trans Union. A credit check will reveal if you have bad, a so-so or an excellent credit. This will determine how much your loan will be and your interest rates. After looking over your credit report, make sure the information is correct if not, take the opportunity to clean it up. You do not want to stress yourself out when a lender checks your credit history and denies you for a mortgage loan. Take care of any consumer debts accumulated or any errors that are sometimes found.

After you have taken care of fixing your credit, think about what type of mortgage you would like to apply to. Mortgages are important because they will determine the house you can afford and how much you would need for a down payment. Having done some research, you should be prepared to find the right loan and lender. When you interview lenders, talk to them about what you are looking for and what your plans are. If you ask them questions and they are not informative with their answers, do not stress just move on to the next lender. Interviewing lenders can be tedious, but the one who is accurate and informative when answering knows what he or she is doing. When talking to a lender your main goal is to get yourself pre-approved for loan. By getting pre-approved you know the maximum amount you can afford to offer for a house. Sometimes you can get approved for a large amount of money, but it does not mean you can go out of your budget for a house. You still want to pay your mortgage and utilities monthly and have money to save for your future and any emergencies.

Once you know what your budget is going to look like, start saving money. First you want to pay off any debts pending. Save money to pay some fees for a down payment, application fee, moving expenses, titles, etc. Do not go on a shopping spree. Accumulated debt can go on your credit and prevent you from getting a mortgage loan. Ask the lender for a list of estimated closing costs to include into your budget. The money saved, should handle any unexpected finances.

Between waiting for your mortgage to be approved and saving money, look for a competent real estate agent. Real estate agents have the inside scoop of homes for sale giving you a wide selection to choose from. An agent is there to help you look and show you a home to your liking. Acting without an agent you are limited looking at listings you see in realty magazines, newspapers, and the Internet. When dealing with an agent it is a good idea to find out if he or she is there to represent you, the seller, or both.

A buyer's agent suggests to you how much the houses you are looking at are really worth and how much you can offer upon deciding a house. They disclose to you information about a house needing repairs. If a seller will accept a reduce price offer because they want to sell quickly, your agent will inform you. A buyer's agent will always have you sign a form of agreement, which can either hold you down to only dealing with an agent and their agencies or have the option to go to other agencies. It is a good idea to sign a non-exclusive agreement, which makes the agent your buyer representative, but does not tie you down to that agent exclusively because you may want to work with various agents that are familiar with the different locations you are looking at. You want to ask many questions when dealing with agents. How much a commission they will make? What will the agent's compensation be? When will it be handle?

A seller's agent is there only to sell you their client's house. They will not let you know any personal information about the seller i.e. if a seller is going through a divorce and is willing to accept a buyer's reduced price offer just to get rid of the house. Do not give a seller's agent your personal information they would only use it to benefit the seller.

Some real estate agents act as dual agents, they work with both the seller and the buyers but they remain neutral. A dual agent works for the firm that holds a seller's listing and signs a contract to represent a buyer. Whatever type of agent you deal with always ask the "what ifs" questions. Do your research and know what you are looking for. You do not want to get tricked into looking at homes that are not to your liking and feel pressure into buying one. It is not necessary to get an agent but getting one can save you time and money.

Your process in searching for a house should not be overwhelming. Take the time to prepare yourself with research before looking at houses. Once you know how to deal with different house hunting task, with the least amount of stress than it will be easier for you to find your dream home at a nice location for a good price.