What Should First Time Homebuyers Know Before Buying a Home
Ten Things to Consider Before Buying a Home
Buying a home is the most important purchase anyone can make. Ensuring you get the most for your money and the home of your dreams can sometimes be a difficult process. Its important to make sure you find out some key things before you even begin to look. So, what should first time home buyers know before buying a home.
Here are ten things to consider before you buy a home.
1) Get pre-approved for a mortgage. Not only will this show you exactly how much home you can buy, the pre-approval process reveals problems with your credit report, which could result in higher interest rates or failure to qualify for as much loan as you may want.
2) While armchair economists insist that buying a home always makes sense financially, unless you are able to stay in a home for a few years after purchase, it may not be a good time to buy a house. The costs of listing and selling a home can eat up equity if you have only been there a couple of years.
3) Keep in mind that many mortgage payments are not just loan repayment, but depending on the sort of loan you take out, your mortgage company may insist you pay monthly for insurance and property taxes, putting this money into an escrow account. Failure to understand these terms can result in a shock when your first mortgage payment arrives.
4) Good schools ensure a better resale value on a house. Check to make sure you are buying a home with a good public school system, which is especially crucial if you have children who will attend those schools.
5) No matter what kind of home you are buying, do not skip an inspection. A home that seems like a bargain can become a money pit very quickly and in the case of traditional home sales, an inspection can not only prevent later headaches, it can be a good bargaining tool in the event that the house needs minor work.
6) Your realtor can help you make an appropriate bid, but it helps to know the price and selling trends for the neighborhood your home is located in. This information is vital in making a cost-effective bid.
7) Check crime statistics for the zip code where your potential home is located. Drive by the house at various times during the day and see if there is anything unusual in the area. See if there have been any unusual noise ordinance violations. Check the sex offender registry for the neighborhood. Even the best neighborhood can have problems.
8) Do a utility check, especially if the house is located in an unincorporated area. Utilities can vary greatly from one area to the next and can be an unpleasant surprise if you don’t do your homework.
9) Evaluate the area before settling on a home. How close are the schools? Where are the supermarkets? Will you have to drive miles to find a bank, dry cleaner or a post office? An area far removed from such conveniences may be problematic.
10) Check to see if there is a neighborhood association. Many associations require dues, an extra expense above and beyond the mortgage. There are definite pros and cons to dealing with neighborhood associations, so check to see if your desired home is within an association’s boundaries. If so, understand the association’s bylaws before buying.
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