buying a home
When it comes to looking at homes for sale, many first-time buyers often find the task as one that can be both exciting and generally overwhelming. Keep a few things in mind both before and during your search, which may help you to narrow things down and could potentially provide better results.
Think about how much you can afford in the scheme of things and long before you start looking. Many people tend to go for the entire loan or what they may qualify for, even if they can’t really afford it in the end. It’s also important to think about other outside expenses you also have under your belt, not to mention new ones that may occur after your purchase such as taxes, HOA fees and so on.
Many people forget to take into consideration what expenses they may currently have, not to mention ones that may impact them after their purchase of a home. Make sure you factor in current expenses you might have. You should also add whatever expense you’ll have with your new home, based on the future mortgage, and any expense associated with the mortgage.
Figure out what will be reasonable for you in the long run, particularly when it comes to your mortgage and key elements such as space and other factors you’ll need in your new home. Setting a budget for yourself and then aiming to stick to houses that meet this price range can often help to avoid the hassle of being tempted by unrealistic houses or homes out of your price range.
It’s good to write up a list of things you’ll need, would like to have, or don’t wish to see. Space is also important, as well as whether or not you’re wanting something that’s detached or something that’s fairly easy to keep up with and maintain.
Things on your list should generally start with the basics. For example, think about how many bedrooms you need, if you’re OK living wall-to-wall with neighbors, if you need a back yard or one that’s fenced, etc. If you prefer on-site laundry or other amenities, then these are good to think about as well.
It’s also crucial to ensure that your expectations are also realistic. If you’re on a strict or low budget and have a desire to live in a popular and likely expensive neighborhood, then you may have to go with a smaller residence or choose to move to a different place in order to get a larger-sized one.
In the end, speaking with a professional agent about homes for sale can often be a great way to gain further help and insight. Many of them have a good idea as to what’s out there, and they may even be able to locate hard-to-find deals that could potentially be in your favor. However, planning ahead can be a great way to help them find what you’re looking for.
If you have questions or comments about these tips for buying a home, please comment below. We’d love to hear from you.
You wouldn’t think of paying an extra 50 grand for that new house. But if you’re not careful, you might waste that much on the mortgage…
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Tags: buying a home, home buying, mortgage rates, mortgages
We’d all like to buy the perfect home. Unfortunately, it just doesn’t exist. Even new homes have defects. That’s why it’s important to have any home you buy inspected by qualified professionals-even if it’s brand new.
You’ll undoubtedly discover defects during your inspections. In fact, you should hope that any significant defects are uncovered before you remove your inspection contingency from the purchase agreement. It’s far worse to be surprised after closing by unanticipated repair expenses.
Armed with a complete assessment of the current condition of the property, you can make an informed decision about whether to purchase the property in its present condition. Or, you may want to renegotiate the terms of your purchase agreement with the seller. If defects are incurable, you may want to withdraw from the agreement altogether.
Your purchase agreement should set guidelines for how inspection defects are to be handled. For example, the seller may have had a “termite” inspection completed before marketing the property. If so, the contract might specify which party-buyer or seller-will pay for the required corrective work.
Not all inspection contingencies are the same. Some specify the buyers have the unilateral right to approve or disapprove inspections. In this case, if the buyers disapprove the inspections, the agreement may be cancelable at the buyer’s option.
Even if your agreement allows you to withdraw due to inspections, carefully consider before electing this option. You will already have spent considerable time, effort and money finding and inspecting the property. If the defects are correctable, it’s usually worthwhile to try negotiating an agreement with the sellers rather than starting the process all over again.
Some inspection contingencies provide for buyers to give the sellers the opportunity to correct defects, rather than just walk away from the deal. In this case, the terms of the agreement often become subject to further negotiation.
In this real estate market, sellers are wise to consider any reasonable proposal from a well-qualified buyer. If the inspection-related defects are significant, they are likely to be a concern to other buyers too. Depending on the law in your state regarding seller disclosures, you may have to provide copies of the buyer’s reports to future buyers who are interested in the property.
There are several ways in which sellers can participate in buyers’ repair requests. They can have the work done by closing, if time permits. Often contractors will accept payment at closing.
Or they can credit money to buyers as long as the credit is called a credit for buyers’ non-recurring closing costs. Lenders usually limit the amount of such a credit to 3 percent of the purchase price or equal to the actual amount of the non-recurring closing costs, whichever is less.
If you have questions about home inspections and how they can affect buying or selling a property, use the comment link below to contact us. We’ll get back to you right here with answers.
Depending on where you live, housing prices are lower than they’ve been in decades. Time to buy, or is renting better?
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Tags: buying a home, home buying, home prices, homes
Some home sellers these days are finding ways to get more creative with financing…
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