Are you planning on buying your first home and you don’t know anything about the purchasing process? Well, if that’s the case, then worry no more, since below we’re going to take a good and hard look at the most important things you should keep in mind.
What are your needs?
One of the first things you should consider before buying your house are your needs. Do you want to live in a popular neighborhood? How about in a more quiet neighborhood or even away from the city?
No matter where you plan on getting a house though, you should also consider the pros and cons of your area. For instance, if you want to move away from the city, then you’ll probably need to drive for a while until you can get to a supermarket.
Also, if you have kids or plan on having kids, then it’s important to think about whether there are schools and parks in your chosen area.
Consider the costs of owning a house
Depending on where you buy a house and the type of home you get, it is necessary to think whether you can afford not only the monthly mortgage payment, but also the overall cost of owning a house.
Lawn maintenance, homeowners association fees, repairs, property taxes and utilities can easily add up. Therefore, no matter where you want to move, it’s very important that you consider that specific area’s cost of living.
Purchase or build?
If you want to build a custom home, then this will undoubtedly cost you more than purchasing a readymade home. On the other hand, remodeling can be pretty expensive and at the end of the day, it’s always a lot less satisfying that if you were to have built your home the way you wanted to in the first place.
Because of that, it’s recommended that you think well before you get a home and see whether buying or building one is better.
It’s recommended that you stay away from bad neighborhoods where the prices are low, since in the end you may not get to like it that much. Instead, buy a house in an area where the value will increase over time.
Know your loans
Advertisements can make you believe taking a home loan is simple and you’ll get amazing terms, but will you think the same once you’re in the branch office? The truth is that closing costs, MPI and points can easily increase your mortgage cost, so it’s very important that you consider them carefully before applying for a mortgage loan.
Use a buyer’s broker
The majority of real estate agents will represent the seller, but when it comes to buyer brokers, they represent your desires and needs and help you find a property that’s best for your needs.
Demand a complete inspection of the property and full disclosure
In the majority of states, property sellers need to disclose any possible or existing problems that the home has prior to selling it. However, if you want to know exactly what is wrong with a house, you should hire a home inspector. In terms of costs, you should expect to pay him between three hundred and six hundred dollars.
Get it in writing
If you want to protect yourself, then it’s best that you have a part of the sale in writing and that you understand everything in the pre-sale contract before you make a commitment. In this case, it would help to hire a real estate professional to help you better understand the real estate and legal jargon.
Things to consider before the purchase is completed
One of the more important things you should ensure is that there are no issues with you assuming ownership of the house and that the title is clear and free. Next, you’ll need to buy homeowners insurance and lastly, think about whether buying a home warranty is beneficial for you or not.
Last but not least, make sure you check whether your property taxes are included into your mortgage payments or if you need to pay them on a yearly basis.
You should also bear in mind to keep the paperwork for your yearly state or federal income somewhere you can easily access them when needed. When it comes to these types of deductions, it’s generally recommended that you speak to a tax accountant since he can help you better understand them.