Most Important Things to know before buying a house
Most Important Things to Know Before Buying a House :- The house, however it may be, is the center of the family life. The house should be such that the family gets maximum relaxation, comfort, happiness and opportunity for self-expression. It must provide space for collective and individual activities of the family, such as recreation, reading, shared activities and experiences and reception of visitors.
It must also afford facilities and opportunities to individuals to participate in activities that require peace and concentration: study, rest, and meditation. The convenience of movement within the house is another important aspect that must be considered carefully and judiciously.
Buying a home is the most important decision that you make in your lifetime. It can be exciting and stressful at the same time, especially for the first-time homebuyer. A new home is one of the largest purchases you’ll make in your life. The idea of being a homeowner can be exciting, but if you’re not careful it’s easy to get in over your head.
Here are some lessons, quick tips for first-time homebuyers that will help you enter the home buying process feeling as prepared as possible:
Start looking six months in advance of when you’d like to move — The process is not fast, and certain things, like closing, take up to a month.
If you get frustrated with the process, think about the end result — What are the reasons you want to own a home? What do you expect to get out of being a homeowner? Is it for your family, to build equity, or because you desire the added responsibility that comes with owning a home?
Make a list of priorities — Decide what things you are looking for in a home, so when you are looking at properties you don’t forget what matters to you the most.
The closing date may move — Until an official date is set, don’t schedule movers or break your lease.
- Get prequalified for a mortgage before you begin looking — This will let you know how much you can afford.
- Save money for after you move into your home — There will always be unexpected expenses and maintenance costs that come with owning a home.
- Read every document thoroughly — Your mortgage is one of the most important documents you’ll ever sign, and it’s a huge financial obligation.
- Consider monthly costs — Beyond your mortgage payment, keep in mind that there will be taxes, insurance, and regular fix-up costs. Ask yourself if you can comfortably afford this.
- Bring paperwork to the initial meeting with your lender — Know what paperwork your lender requires ahead of time, and avoid delays by staying organized.
- Plan for closing costs — Many first-time homebuyers don’t account for closing costs. A general rule of thumb is to plan anywhere from 3-4% of the purchase price for closing costs, but this varies per state and region. Talk to your mortgage banker to learn more about closing costs in your area.
- Having debt, such as car loans or any loans, doesn’t mean that you can’t become a homeowner — Talk to your mortgage banker about the mortgage options that might be right for you, such as an FHA loan, which requires a lower down payment.
- Just because you are approved for a certain loan amount doesn’t necessarily mean that’s how much you should spend — Be sure to account for lifestyle choices, total monthly costs, and career expectations.
Here is a few explanation of important things to know before buying a house.
12 Most Important Things to Know Before Buying a House
Number 12: Understand the bidding war rules
This is the main reason you will overpay when you panic while you are caught up in a bidding war. Find out first what the house should sell for, as many sellers deliberately list for a price below market value to attract a high number of buyers. Do not tip your hand. If you give your offer too early in the day, the seller’s agent will call everyone immediately to try and encourage a bidding war. Bring in your offer around 7 pm and make the irrevocable period no more than 4 hours. Put the pressure on the seller, not on yourself.
Instead of panicking, if you follow these steps and buy with your head instead of your heart, chances are you’ll get the house you want at a price you can afford, with no unwanted surprises later.
Number 11: How much can you afford?
You should never live just to pay your mortgage, or else the rest of your quality of life will suffer. Meet with a mortgage broker in advance to determine how much you can safely borrow, based on your income and family needs. Remember that even if you prequalify for a mortgage, the lender will still do an appraisal and if the lender believes you paid more than the house is worth, they will not give you the full amount of the loan that you expect. So, be very careful about stretching yourself to the limit in any bidding war. Make sure you have an extra 5-10% as a down payment in reserve, just in case.
Number 10: Research your seller and the neighborhood
Get to know the neighborhood. Make sure your dream house is in the right kind of neighborhood before you commit to such a big investment. Is the neighborhood full of rentals? Go for a walk and talk to some of your potential neighbors.
Make sure you are close to public transit. What schools are in the area and is there a waiting list to get in? Check out the police websites to study crime statistics in neighborhoods. Walk any neighborhood you are interested in and talk to people. By speaking to people, you can not only get a sense of the friendliness of the community, but also as to whether there are any surprises that no one is going to advertise, such as a former grow house or the neighbor from hell. See if there are any basement apartments in the area if that is important to you as well. Ask any seller if they have had any major floods or made any insurance claims.
Number 9: Survey
Have a professional survey done to the property. You want to know exactly where your property ends and where someone else’s begins. If you build a shed or put up a fence you’ll want to make sure you’re doing so on the right property.
Number 8: HOA
Is the house part of the Homeowners Association? There are many things to consider when a house is part of the HOA. Some associations have meticulous standards including grass length, paint colors, etc. Other associations exist to keep houses from turning into rental properties. Rental properties have the potential for bringing down surrounding home values.
Number 7: Find the right real estate agent for your needs
It’s important to have a real estate agent that you trust and with your interests at heart but always keep in mind that there is the commission involved and business is the business. It’s okay to question and ask for 2nd opinions.
Do not go into an open house alone, thinking you can save the commission. The agent is working solely for the seller and their job is to get the seller the most money they can. While focusing on saving a few dollars negotiating the commission, you will invariably give away important information about yourself which will hurt you later in the negotiations. Start by asking family and friends for a buyer agent referral. Then study the agent’s own website. Do they offer you information that will assist you with your search? Do they have a team of professionals that they can share with you? When you interview them, ask them about their knowledge of the area; in particular, is it known for sewage backups, termites, flooding or mold. Ask for their own success rate when working with buyers, especially in bidding wars, and then follow up by calling those buyers yourself.
Number 6: Homeowners Insurance
Homeowners insurance is important but understand that there is insurance for the structure and there is insurance on your personal property inside the structure. Make sure you have adequate coverage and if the house is in an area with even a potential to flood, add that extra flood insurance.
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12 Most Important Things to Know Before Buying a Home