6 Secrets You Must Know When Buying A House

Buying a house is both an art and a science, and as such, there are a few secrets to the process that only experts and experienced buyers know about. Pulling back the veil on these secrets can help your home-buying experience be more positive and successful. Here are are six secrets you must know when buying a house.

Credit score is king

If you are going to get a mortgage to buy your home, as nearly all buyers do, it's important to have a good credit score. One of the home-buying secrets that most buyers don't know is that the most important factor in getting a mortgage isn't your down payment or income, it's how good your credit score is. Your score will determine whether or not you qualify for a loan as well as how low your interest rate is.

Pre-approval is important

Getting pre-approval for a mortgage is important to help make your home purchase go more smoothly. Though a pre-approval doesn't guarantee a loan, it does mean a lender has looked at your finances and determined a loan amount it thinks you can qualify more. A pre-approval will help you get a loan faster once you make an offer on a home.

Don't go it alone

Some people shy away from working with real estate agents, but there is no reason for a buyer not to. Since sellers almost always pay buyer commissions, there is virtually no downside to having a Realtor help you find the home of your dreams.

Have the home inspected

Most lenders require a home inspection, but even if yours doesn't or if you are buying the home with cash, you should still have an inspection. A home inspection costs a few hundred dollars, which isn't much when you consider how much a hidden problem with the home could cost you to fix.

Worst can be best

Many home buyers want to spend as much as they can afford to get the best house possible. But it actually can be better in the long run to buy the worst house on the block. Buying a fixer-upper gives you more opportunity to increase value over time.

Be ready for hidden costs

Buying a home isn't just about your mortgage payment. You have to account for taxes and insurance as well as the costs of ongoing maintenance. Be sure you leave room in your budget for these costs.