Your home will likely be your most expensive purchase. That is why you should have all the facts before you make the decision to buy a new home. This report explains the 10 most important tips to consider when purchasing a home.
Before you buy:
1. Try to get Pre-Approved
A pre-approved mortgage can be obtained and saves you time and energy when placing an offer. With a pre-approved mortgage, you can shop with freedom, confidence and security because you know you are looking within your budget to purchase the home you choose.
2. Determine What You Need
Determine what you are looking for in a home. Buyers often get swept up in the emotion and excitement of the buying process and purchase the wrong home. Take the time upfront to clearly define your wants and needs. Put it in writing and measure every home you look at with your goals in mind.
3. Do Your Research
Be sure to research the market and the neighbourhood so that you have a good understanding of what you should be paying for your new home. This way you can determine how to bid on a home and when you’re getting a good deal. If you fail to research the market, making your offer would be like bidding blind. Without knowledge of the market, you could easily make a bad bid.
When you find the right home:
4. Do a Thorough Inspection
Don’t expect the seller to confess all the problems with the home. You need to be inquisitive and investigate for yourself to be sure that the home really is a good buy and that you are getting a good deal. Be sure to conduct proper home inspections early on, so that any problems that are detected can be solved prior to closing. You may consider hiring an inspector to examine the home. Consider, when possible, making your offer contingent upon your satisfaction with the results of a home inspection.
5. Property Surveys
As part of your purchase offer, you should ask for a property survey. This will help you determine where your property begins and ends and will help you determine how to use it. Current surveys should show all structural changes to the home. If a survey does not exist, consult your real estate lawyer about title insurance.
6. Visit After Signing
Have a clause added to your contract that allows you a couple of visits to the home before closing with one of them taking place in the days before closing. Many owners begin neglecting the home once they know it is sold. By visiting before closing, you can identify if there is a problem.
7. Think about the Hidden Costs
Make a list of all the fees you may incur in closing the home so that you know exactly what you will be paying. Having unexpected expenses when moving is something you’ll want to avoid. You need to know what to expect and be prepared.
8. Check the Title
Before you close, your lawyer will make sure that the house will be yours free and clear. Often times there are tax liens, easements, undisclosed owners or other circumstances which could cause major issues in the purchasing of your home. Be sure that you are making the right decision. Hire a legal professional for whom real estate transactions are a major part of their business.
9. Take Your Time on Closing
People can get excited when closing and may rush through the paperwork. Don’t make this mistake. Take your time and review everything before signing it. Make sure that all the conditions in the contract have been fulfilled and that there is nothing outstanding. Make sure the documentation reflects the transaction and that nothing has changed.
10. Enjoy!
