What you Need to Know Before Buying a Home?

A house is almost certainly going to be the biggest and most expensive purchase that you make in your lifetime. However, buying a home is a stressful process and the fact that so much money is at stake means that, whether it is your first home or a subsequent purchase on the ladder, the pressure is on to get it right.

To help make sure that you have all the bases covered and aren’t in for any unexpected or nasty surprises, here is what you need to know before buying a house.

 

You’ll Need to Get Your Finances Straight

Finances are easily one of the most important aspects of any property purchase. You won’t be able to buy any home unless you can afford it and, unless you have a considerable cash lump sum, you have a lender willing to give you a mortgage. It is essential that you get your finances straight before you start looking at potential new homes, otherwise, you could be left disappointed. This includes:
 

• Saving a down-payment (usually between 5-20% of the total property price)

• Getting your credit score as high as possible, since this will affect how much lenders are willing to loan and how high the interest rate is that will be applied to your mortgage

• Making sure you have funds available to pay fees and other costs associated with the property purchase

• Getting a mortgage pre-approved since this will put you in a stronger position when it comes to making an offer on your new home
   

If you are concerned or have questions about financing your new home, speak to your bank or your mortgage broker who will be happy to help you.

 

Do Your Research

You may already have a good idea where you want to live and what type of home you would like to buy, but it is still important to do your research. Pay close attention to the market in the area where you will be buying to see how long homes there stay on the market as this will tell you how much negotiating power you may have. Be sure that you understand the area in which you are buying if you aren’t familiar with it – visiting at different times of the day will help you get a feel for the environment.

 

Find a ‘Voice of Reason’

When it comes to looking at potential homes, it can be very easy to get carried away. Heart vs. head is a very real struggle for many people who may fall in love with a particular property in person, but find that on paper, it may not be a great deal that it seems. For this reason, many property purchasers run their home by a close friend or family member who can act as ‘the voice of reason’ for them. They don’t have the same emotional connection to the property, so they are better able to see the practicalities and offer their advice and opinion.

 

Don’t Forget to Peel Back the Layers of Your Potential Home

Homes come in layers. The outermost layer is the external appearance of the property – the color the walls are painted, the landscaping of the garden, etc. However, beyond this, there are various other layers to uncover, including:
 

• The amount of usable space is in the property

• The amount of storage

• The general condition of the fixed items such as bathrooms suites and kitchens

• The condition of the areas of the home that most people may not see including the attic and basement

• The condition of the roof and foundations

• The systems servicing the property – air-conditioning, water, etc and how effective they are

It is essential not to get blinkered by the superficial aspects of the home that you are considering purchasing, and instead make sure that every layer represents a sound investment.

 

Don’t Forget That you can Negotiate

There is a lot of paperwork to get bogged down in when you buy a home, and it may seem that there is a contract after contract to sign. However, don’t forget that these contracts are negotiable. You don’t necessarily have to agree to the terms stated, and there is nothing wrong with asking for more time for inspections, further checks and more to make sure that your property and deal is the best that you can get.

 

Hire a Great Realtor

A great realtor is by far the most valuable resource anyone who is considering buying a home can have. Yes, realtors take a cut of the sale price of the home, but remember that it is the seller and not the buyer that pays their commission and they have the experience and knowledge that you may be lacking. A savvy realtor protects your interests, guides you through the buying process and supports you at every step. This includes helping you find the right home, negotiating prices, navigating home inspections and sealing the deal. If you are considering buying a home, getting a great realtor in your corner is one of the best decisions that you can make.

If you’d like more advice and support before buying a house, our expert team would be happy to help. Contact our offices in Encinitas, CA today.