Things to consider before making an offer for a Home

If you have seen enough houses and got your heart stuck in that one particular house and you think that’s the one, you would be quite excited about making an offer and get negotiations started. If you’re buying in a tight market where sellers have the upper hand you may even feel pressured to put in an offer the moment you see a house. But, before you write that check for your earnest money deposit, you should take a little time to investigate the house and the neighborhood so you have a better idea of what you’re buying. Your Realtor can be very valuable resource in gathering information for you and getting the answers to your questions from the seller’s agent. In the interim period, you can do some of your own research:

1. Search for neighborhood information online.
2. Check the crime report in the neighborhood online.
3. Check on the schools: Even if you don’t have kids, good schools in the neighborhood means that the house will maintain its value in future.
4. Check for local & neighborhood amenities: Like whats in the walking distance from your Home such as park, supermarket, repair shops, gym, etc. and if you are interest in some particulars facilities like tennis, swimming, then check the proximity to such facilities.
5. Visit the home at different times of day: In order to see how quite or active the area is in different times of a day or in different days of the week.
6. Schedule a home inspection: In order to know what repairs must be made and about how much they will cost. You may also be able to negotiate from the seller to pay for such home improvements
7. Test your commute: So that you would have an idea about the traffic pattern during rush hours.
8. Ask about taxes, homeowner association dues, homeowners insurance and utility bills.

Step by Step Guide Before Starting House Hunting for Your Dream Home

Step 1: Determine What You Can Truly Afford
Quite obvious, the first step is to find your budget as you do will taking any capital decision.
Here is our step by step guide for you to start determining your budget for a home or what truely you can afford:

1. Now that you've nailed down your numbers, it's time to start shopping for a mortgage lender with a reputation for good customer service and timely closings. You'll likely have a lot of questions—like how long the process will take and what the qualifying guidelines are—so choose a lender that answers them all satisfactorily.
2. There are plenty of different mortgage options to consider. Try choosing one from these common two: Fixed-Rate Mortgage, in which your interest rate remains steady for the duration of the loan, or Adjustable Rate Mortgage (ARM), in which your rate fluctuates to reflect market changes. ARMs can be a good if you plan to live in your home no longer than the original fixed period, otherwise, prefer Fixed Rate as if the interest rate rises, you could find yourself with a mortgage payment that's higher than you planned.
3. Prefer a 30-year term over 15—even if you think you can pay off your home faster. If you ever need to lower your payment in the future, you'll still have that option.
4. You'll also want to make sure you have enough savings left over to help pay for any home improvements, decorations or miscellaneous moving and maintenance costs that may pop up—in full. Meaning: You should not be using your emergency fund to cover these costs.

                                                 (Source for figures: Tom Gilmour, a CFP® at LearnVest Planning Services)
Step 2: Figure out Which Mortgage is Right for You and Get Pre-Approved 

1. Now that you've nailed down your numbers, it's time to start shopping for a mortgage lender with a reputation for good customer service and timely closings. You'll likely have a lot of questions—like how long the process will take and what the qualifying guidelines are—so choose a lender that answers them all satisfactorily. 
2. There are plenty of different mortgage options to consider. Try choosing one from these common two: Fixed-Rate Mortgage, in which your interest rate remains steady for the duration of the loan, or Adjustable Rate Mortgage (ARM), in which your rate fluctuates to reflect market changes. ARMs can be a good if you plan to live in your home no longer than the original fixed period, otherwise, prefer Fixed Rate as if the interest rate rises, you could find yourself with a mortgage payment that's higher than you planned.
3. Prefer a 30-year term over 15—even if you think you can pay off your home faster. If you ever need to lower your payment in the future, you'll still have that option.
4. Apply for a pre-approval, the process in which a lender reviews your financial information and commits to giving you a mortgage for a specified interest rate. Keep that in mind that a bank may approve you for a larger loan than you've determined you can afford, so don't be seduced by their findings—and stick with the budget you landed in the earlier stage.

Step 3: Decide Must Haves & Nice to Haves Features

There are very few lucky people who gets there perfect home within there budget, so before you go house hunting, brainstorm a list of what you absolutely must have in a home—and which features are simply nice extras.

First thing to decide in this step is where you want to buy a flat or a plot/land. Other examples of must-haves might include the number of bedrooms and bathrooms, distance to work and other places you frequent and access to your preferred schools. Some people also have strong preference on the amount of outdoor space a house offers, balcony space, etc. Things that shouldn't have on your must-have list ? The way a house is decorated, well-manicured landscaping, a pool—or anything else you can easily fix or install yourself.

After going through all the above 3 steps, I think now you are ready for house hunting which you can start by yourself or you could hire an agent which is generally really helpful as an agent can provide access to more home options than you'll likely find yourself, as well as set up viewing appointments and since home-buying can be an emotional process, an agent can also act as a mediator between you and the seller.