Whether you’re buying a home for the first time or not, there’s no less pressure to ensure that you’re making the right investment.
Purchasing a home is a huge financial commitment — it might be the biggest one you’ll ever make. This is why you need to know that the home you choose is worth your while. If you have your doubts about a property, there are a few steps you can (and should) take to put your mind at ease.
Check out this blog on doing your due diligence before you sign on the dotted line when buying a home.
Shop Around for the Right Lender
Receiving the pre-approval you need on a mortgage is probably the biggest and most stressful step when buying a home. But despite how important this is, you also want to ensure that you’re also receiving the best deal before your pre-approval goes through.
And there’s no shame or harm in rejecting what a lender may offer you if it doesn’t suit your finances. Part of your due diligence is shopping around for the right lender who can offer you the best mortgage rate for the long term.
Get to Grips with All the Expenses of Buying a Home
As we mentioned, purchasing a home is no cheap feat — in fact, it’s the most expensive thing you’ll probably ever buy, other than commercial property. But there’s also more to buying a home than just the mortgage rate. You want to do your homework and ensure that you’re fully aware of all the fees and costs associated with home buying.
Some of these may also include homeowners insurance, home repairs, property taxes, and homeowners association fees. Not-to-mention realtor commission fees. Make sure your overall budget can handle all of these associated expenses.
Have a Clear Idea of What You Want Before You Buy
This is an important point and one that many people tend to neglect. Before you even enter the home buying market, you want to have a general idea of what you’d like out of the home you buy. You also want to consider the type of home you want, i.e. a townhouse, a condo, or a stand-alone home?
There’s no harm in looking at all your options if you’re undecided, but it’s crucial that you come away with a clear idea once you’ve explored them. The best way to make a positive, informed decision is to do your research on the pros and cons of owning each type of home.
Keep in mind that the home you buy will most likely be a home you live in for many years to come. You want to choose a space that suits your family, your lifestyle, and your general needs. Remember that more space is not always better as this means more home maintenance!
Always consider the neighborhood too and whether it offers the local amenities and transport routes that suit you.
Always Have the Home Inspected Before You Buy
This is not something you want to skip or skimp out on. Make sure you hire an inspector that is a member of the American Society of Home Inspectors for a thorough once-over of the property. Even if the home is brand new, a new building inspection is still important.
Make sure the inspector has a good reputation, knows what they’re doing, and is not motivated to encourage the sale of the home. In other words, you want someone that’s completely impartial.
A home inspection is probably one of the most vital steps you want to take before you buy a home. It can save you from unwarranted legal troubles and thousands of dollars down the line.
Don’t Go at It Alone, Work With an Experienced Realtor
One of the best ways to find a home that fits in with your finances, and the needs of your family is to work with a realtor. While you can go about finding your perfect home on your own, it could take you twice as long.
Not only this, but you want to work with a realtor that understands your preferred neighborhood(s). This way, a well-informed agent will know what homes are really worth and what will suit your budget. They will warn you if you’re overpaying for a property, too.
A realtor will also have a good knowledge of the local real estate market and advise on the best (and worst) times to buy. Which could also save you thousands of dollars in the long run!
Buy Within Your Maximum Spending Range
Every new home buyer should have a maximum they are willing to spend on a mortgage deal. Make sure that you are well aware of this maximum range, and don’t spend over it. Ultimately, you want to make sure that you buy what you’re comfortable paying for — and no more than that.
Even if you’re cleared for a loan that is far more than what you’re willing to pay, it’s best to err on the side of caution and not overspend. Stick to what you’re comfortable with and you’ll thank yourself later on.
Ensure the Home Matches the Listing to-a-Tee
This may sound like a no-brainer, but you also want to ensure that the home you’re buying does what it ”says on the tin”. In other words, it should match the listing pretty accurately.
You want to take some to verify that all the listing information is correct and you’re not buying into something that does not meet your expectations!
Envision Yourself in the Home
Home viewings can be tricky. Sometimes they may look completely different in person from the staged listing photos as the home itself could be cluttered with the current owner’s belongings. But the best way to get a feel for a home is to try to see past all the clutter and envision your own belongings and family in the space.
This allows you to see the true potential of the home and realize whether it suits you and your family or not.
Understand Your HOA Dues (If Any)
Depending on the type of home you buy, it could come attached with Homeowner’s Association fees (HOAs). For example, if you choose to buy a condominium, you’ll usually have to pay monthly HOA dues.
An HOA is an organization that oversees the care and maintenance of the condominium property, so you don’t have to worry about property maintenance. But before you sign up for a mortgage contract, make sure you’re fully aware of all the HOA dues and what it could cost you.
Access to Daily Homeowner Updates
If you’re planning on buying a home in the near future, it’s crucial that you take some time to carry out the above due diligence. After all, this is the best way to secure your future and the investment you make.
If you’re a new homeowner, or soon to be one, this is the site for you! Explore for all things home and garden updates, maintenance hacks, and more.