Buying a home in Bismarck, ND?
Follow these tips to buy your home successfully
Looking at homes for sale in Bismarck, ND, can be a thrilling experience for you and your family, especially if you have the proper help. Nothing is more disheartening than an unforeseen bumpy road. Buying a home, regardless if it’s your first or not, is much easier when you have properly prepared yourself for the adventure. We believe the more you look around, the more you will see the value of working with the professionals at Trademark Realty. Our goal is to save you time and money during the process of purchasing your first home.
The housing market in Bismarck is fast-paced and quickly changing. Your dream home may be on the market today, and gone tomorrow. You have to learn how to move fast when it comes to navigating the real estate listings in Bismarck, ND. Our agents are familiar with trends in the market and we are here to provide you with all the tools and knowledge needed to be successful. Here are a few things to consider before you start shopping for your dream home.
Learn the financing basics. Learn as much as you can about financing, and look into pre-qualification versus pre-approval. According to Investopedia, pre-qualification when it comes to mortgage loans means that you have taken the basic steps towards becoming approved for a loan. You supply a bank or lender with your overall financial picture, including your debt, income, and assets. Pre-approval, on the other hand, means that you have taken all of your necessary paperwork to your lender. If you receive a pre-approval letter, you’ve filled out an official mortgage application (which usually comes with an application fee), and supplied the lender with the necessary documentation to perform an extensive check on your financial background and current credit rating in order to determine how much money you can borrow for a home loan. Most home sellers will opt for those who are pre-approved. Contact our agents if you have any questions about your the financial process.
Research your mortgage options. There are two main types of mortgage loans for you to choose from: adjustable-rate mortgage (ARM) or fixed-rate mortgage. According to the Consumer Financial Protection Bureau, the difference between a fixed rate and an adjustable rate mortgage is that for fixed rates the interest rate is set when you take out the loan and will not change. With an adjustable rate mortgage, the interest rate may go up or down. If you decide that you would like to utilize an ARM, the interest rate will typically be lower than the average housing market rate for the introductory period. For an ARM, after the introductory period is over, your interest rate will either go up or go down according to market trends. You never really know how much you’ll be paying each month. Whereas fixed-rate mortgages will have the same interest rate regardless of the market trends, so you could either be saving or spending more money than with an ARM. If you have questions, our knowledgeable buyer’s agents are here for you.
Hire a buyer’s agent. Hiring a buyer’s agent from Trademark Realty will provide you with the peace of mind that you deserve when going through such a stressful transaction. Our friendly and helpful agents have years of experience and are eager to help you get into the home of your dreams. If you're interested in learning more about real estate agents in Bismarck, ND, or the process of purchasing a home in our area, contact us today.
Start setting aside money now. Do you know how much you'll need? Find out here. Now is the time to start tucking away any money that you can to build your down payment.
- Down payment. According to Bankrate, the down payment is money you give to the home’s seller. On average, you will be paying between 3%-20% of the total cost of the home that you’re interested in. Often higher down payments are more valuable to sellers, and in certain areas, there are banks and programs that offer down payment programs. Contact our agents, and ask about trends in the area.
- Closing Costs. According to Zillow, closing costs are “fees associated with your home purchase that are paid at the closing of a real estate transaction.” These costs can sneak up on you if you’re not ready for them and they can cost anywhere from 2%-5% of your total loan. The seller covering the closing costs is less likely in today’s market, so it’s best for you to save up enough money to cover these costs in addition to the mortgage payments that come with buying a home in Bismarck, ND.
- Paying for mortgage points. Points cost 1% of your mortgage cost and can act as prepaid interest so you're buying down your interest rate. These mortgage points can save you money over the course of your mortgage.
- Move in costs. Real estate listings in Bismarck, ND, can be costly. But it can also be considered a tax deduction, so keep any receipts you acquire over the course of your move. No matter how easy your new home may be able to get to, you will come across move-in costs. From movers to renting trucks, to moving supplies - you’re definitely going to have moving costs. Make sure that you take these costs into account. Perhaps you’ll be spending a few days out of work or you’ll need to hire a moving service. Whatever the case is, prepare for inevitable costs that will spring up along the way.
When you start shopping, this is the time to already know what it is you’re looking for. You should take a look into all of the details of a home, not just the bedrooms and bathrooms. Consider commute time, nearby schools, habits and lifestyle preferences. You should also account for how long you are planning to live in this home, and how many repairs you are willing to make during the time period. Think about this, and more. Explore local attractions, and make regular visits to the City of Bismarck before the move.
Figure out which neighborhood is right for you. Take some afternoon strolls down the neighborhoods around the homes in Bismarck that you’re interested in. You will gain the best perspective of the home you’re interested in by seeing it in person, as well as the neighborhood. If you would like to learn more about what Bismarck, ND, has to offer, visit the Resident Information page provided by the City of Bismarck.
When looking for a home, don't shy away from elbow grease. There is a difference between a home needing structural remodeling and a fresh coat of paint. Yes, just one awful, outdated shade of paint can put you off of a home, but if you look past the color or the carpet, you may find the potential for your dream home. Try to look past any minor blemishes when finding a home in Bismarck, ND and recognize the property at its roots.
Submit a strong offer. Finding the right offer can be tricky. It’s important to submit an offer that is neither too high or too low. With constant fluctuations in the market, it’s best to get advice from the real estate experts at Trademark Realty. We can help you determine a powerful offer that is within your budget.
Read the fine print. From regulations to housing authority covenants to contingencies, there are so many items that could leave you with a surprise after closing if you’re not diligent. Look over your contracts and contingencies and make sure you’re happy with the considerations. Trademark Realty prides itself on customer care, and we are happy to go over your contract with you to ensure
Get your agreements in writing. As always, it’s imperative that you get all agreements in writing. Your documents will be invaluable as a reference later if you need them.