We all have a dream to buy our very own home; in fact, many of us start saving from the day we land full-time employment. Of course, having enough money saved is vital to buying your own home, but there are many other things to consider.
Most potential home buyers’ due diligence list consists of checking their credit, getting pre-approved, finding the right realtor, and going to open houses. These are basic home buyers’ considerations.
It sounds pretty straightforward. On the contrary, it’s not. Homeowners are aware that the entire process of purchasing a home includes many overlooked or unnecessary tasks.
Moreover, a certain level of stress is involved when you’re searching for that perfect dream home. Many people rely on Google to understand the home buying process and what sort of questions they should be asking their realtors and agents.
However, with so many sources out there, it can get a little overwhelming. Therefore, we have decided to share the four most important things you should consider when purchasing a home.
The People Around You
You will inevitably have many different sets of opinions from people around you once you share that you’re looking for a home. Opposing opinions may be the first thing you realize, and in all honesty, it can get a little confusing.
Despite different opinions, it’s important to push aside personal opinions and focus on the advice from those in the real estate industry. People working in home improvement and real estate are bound to know more than those who just heard things from word of mouth.
When you finally choose a realtor, choose one that comes highly recommended because of their years of representations and success and know the area that interests you.
The Size of the Home
It’s always tempting to buy a bigger home because of all the space you’ll have for leisure and furnishings. However, no matter how appealing it looks, there’s no point in buying a bigger home than what you need.
Why is that so? Because a big house only means that you’ll more to maintain, higher utility bills, and some things could go wrong if you’re not prepared for such a big space.
Hence, think about your current residence and how much space do your belongings require. If the homes you are looking into are larger than you need, perhaps consider a townhome or condo.
Loan Approval and Payment Options
It’s time to clear up a misconception people tend to have about pre-approved loans. Getting pre-approved for a loan in no way means you have instantly locked up a home. However, it gives you an idea of the type of mortgage you can handle, which is an important step.
Moreover, the mortgage approval numbers on your loan also dictate how much down payment you will be required to give. Down payments are usually around 20%, but it also varies from government FHA loans to other types, and of course, personalized deals made with home sellers.
If you do find a home that exceeds your pre-approved loan limit, or you can’t afford to provide a 20% down payment, it’s best to forget it and move in. It’s important to stay within your budget, no matter how much you like a property.
What Home Inspection Consists of?
Home inspections are another consideration of purchasing a home. The inspection of a house is more than just a formality. Many people might not take it seriously, but some problems could pop up after the move.
Home inspections generally uncover serious problems with the house, such as rot, foundation issues, roof damage, improper insulation, pest issues, mold, and outdated wiring, among many other problems.
The inspection is also the perfect time to gauge whether you need insurance coverage for home repair plans. It’s vital that you’re aware of these problems before making a final decision.
The good thing about a home inspection is that current problems with the house usually lead to you getting a new offer with new conditions from the seller, and they’ll have to fix or pay for the issues before you purchase their property.
There are many more things to consider when purchasing a home, like the neighborhood, commute hours, and school district. However, the four items mentioned above are the most important in our opinion. Good luck in your hunt for the perfect home!