buying a home with little money in savings

Tips For Purchasing A Luxury Home

by Fernando Moore

Luxury homes are typically larger, more opulent, and have larger lots than the standard American home. They usually have a number of amazing features and are meticulously upgraded and maintained. Owning a luxury home is a dream that some people realize after years of hard work. If you're in the financial situation to purchase a luxury home, it is important to know that the process of finding and buying a luxury home is a little different than a normal home. Use the following tips to help you buy a luxury home:

Be Qualified for a Mortgage in Advance

One of the most important things you can do before searching for a luxury home to purchase is get approved for a mortgage loan. Since luxury homes cost more than the average home, the mortgage approval process may take longer. Make sure that you have all of the documentation needed to prove that you have the income needed to make a large mortgage payment each month. You may want to consider getting pre-approved for a jumbo mortgage loan at your primary bank where they are already familiar with your financial situation.

Find a Real estate Agent Who Specializes in Luxury Properties

People who are planning to buy a standard home can turn to the internet to search for homes for sale. But in many cases, luxury homes are marketed in a different way and are not always listed online. People who own luxury homes often want to protect their privacy, so open houses for a luxury home for sale are not common. Your best bet for finding the luxury home of your dreams is to work with a local real estate agent who specializes in serving as a buyers agent for luxury home buyers. These agents will have in depth information about luxury homes for sale in your area. 

Plan for Added Expenses

When determining how much you can afford to spend on a luxury home, it is important to think about more than just your mortgage payment. You will also need to include the cost of homeowners insurance and real estate taxes into your monthly budget. Since luxury homes can cost substantially more than a standard home, your home owners insurance premiums and real estate taxes can add a significant amount to your monthly expenses.

Invest in a High Quality Home Inspection

After you find the perfect luxury home and your offer is accepted, you will need to have the home inspected. It is in your best interest to hire a home inspector who is very experienced in inspecting large luxury homes and is very familiar with common features that they have, such as pools, spas, fountains, heated floors, and alarm systems. The last thing you want is to discover that you need to make expensive repairs after you have moved in.