If you plan on buying a house soon, then good for you, we have listed below five of the best tips to make your home buying success, so remember to take notes to make sure you don’t miss any significant detail.
Home buying, whether it is your first time or not, will always be a big deal. It is one of those financial decisions one can make a huge impact on your life. However, many people fall into the “rush trap” when purchasing a house.
Consider Your Long-Term Plans Before Buying
We all have a dream home. However, a house is a tangible asset stuck on the ground. Before making the purchase, think about your plans, and whether or not you’ll most likely stay in the area or not. Why invest in a house you won’t even settle down at for many years to come? Of course, if you have more than enough funds to have a residence in most places you go to often, you’re pretty much excused to do as you wish.
Think About Your Finances and Only Buy What You Can Afford
Many people live way beyond their means, which meant stretching out the budget and opting for loans that can drag you to bankruptcy. Even seemingly financially stable people tend to lose their brand new houses after the economy turned south. So, when purchasing a home for you or your family, make sure to assess your finances and buy what you can actually afford. It would be best not to go after what your mortgage company believes you can afford and settle for an amount less than 1/3 of your income.
Get Pre-Qualified for Mortgage Loans Before House Hunting
Not knowing how much you can spend is one of the biggest mistakes any homebuyer can commit. By getting pre-qualified early on, you’ll learn how much more money you need and if you need to apply for FHA loans. One only needs to provide financial requirements to a mortgage lender, and they will assess how much money you can borrow. This way, you can look for houses within the price range, and then all you need to do next is get approved for credit.
Don’t Fall into Crazy Price Drop
Lots of homeowners drop the price of their house for sale at least once a month for up to $10,000. If you find one that listed their home for a crazy price drop, make sure to do your investigation as to what prompted them to make the dramatic price change. Make sure you check their real estate clear title and check the house condition. Below are some critical things you must inspect on the house.
- Bad Smells – While on a house tour, take note of any bad smells you may encounter. It can pose as a red flag as it can mean there is an underlying problem within that house – which is mostly caused by water damage, mold and mildew, and even full repainting. While a newly painted home is not bad, most paint jobs done before selling a house can only mean two things – a recent home improvement project, or a way to cover up major damages.
- Inadequate Ventilation – Without adequate ventilation, any moisture inside your house cannot evaporate – leading to damaged interiors. Poor ventilation can also cause health consequences such as headaches, fatigue, eye irritation, and respiratory distress – things you won’t want to experience while living in your new home.
- Poor Drainage – When you find inadequate drainage around the exteriors of a house, this can mean water can crawl inside the home through garages and basements. You can end up paying hundreds of dollars to repair an old problem that the previous homeowners should have addressed before selling.
- Plumbing Issues And Water Damage – Water damage can be you and your wallet’s worst nightmare. While one can prevent this through routine repair and proper maintenance, buying a house with signs of water damage is a costly risk. Make sure to check for signs of plumbing issues and water damage from the top down such as drippy plumbing, moldy smell, and roof or ceiling damage.
- Crumbling Foundation – The structure of a house is an essential factor that tells you whether or not it is worth the money. A house with a weak foundation is a safety risk, so make sure to watch out for signs of a weak and crumbling foundation before saying yes.
Consider All Costs Before Signing the Contract or Paying for Anything
Many think that the purchase price is the only thing you need to check before buying. But what they fail to realize is that your expenses can quickly add up. Insurance, real estate tax, maintenance, home improvements, and homeowner association fees are just some of the costs you need to consider.
Weigh in Your Options
There are deals that one may find too good to be true, while some looks are promising but are actually quite a rip-off. When choosing between homes, it’s best to have three to five options and weigh in the pros and cons. This will help you determine which house would be best for you and your future.
It would also be a good idea to find a trusted realtor when buying a house. Contrary to popular home buyer’s belief, a reliable realtor will protect your assets while getting you a good deal. Make sure to keep this list in mind, and you’ll have a higher chance of owning a good home you love, can afford, and is actually a good investment.
About the Author Robert Viggiano
Robert Viggiano is the owner and co-founder of Sunnyside Title Agency. After earning a B.S. in Finance from Fordham University, Robert went on to become a licensed title agent in the state of New Jersey. He founded the Sunnyside Hackensack NJ Title Agency with his wife, Angela, in 2018. Named after Robert’s hometown of Sunnyside, Queens, Robert prides himself on running an agency with a staff dedicated to exceptional and timely customer service, as well as those who share his optimistic and competitive mindset. A former basketball player, Robert has previously served as a volunteer coach for William Paterson University’s basketball team.