Things to consider before and during the process of purchasing a home:
- Ask for Referrals. Talk to friends, family, neighbors, co-workers, and anyone that you trust who may have recently just purchased or sold a home. Ask them who they used, if they were happy with their experience and what they would have done differently. You will need a mortgage lender, realtor, and a good home inspector.
- Meet with a Lender. To me, this is the most important step. You want to know how much you can afford, and that does not mean how much you actually qualify for. You do not want to be house poor. You want to be able to have enough money to put down towards a house, but also enough to keep in savings for repairs and updating that you would like to put into the home after you purchase. Meeting with a lender will give you an idea if you are ready to buy or if it is best to wait a little while until you have a bigger nest egg.
- Contact a Realtor. Hi! That’s me! For all those living outside of PA, if you do not know a real estate agent, this is a good time to go back to asking people you know and trust if they have any good recommendations. If not, a good google search and meeting with a few agents until you find someone that will look out for your best interest always works too.
- Looking at Homes. It’s important to know what to look for when you start actually stepping into potential new homes. Yes, your agent is there to guide you, but you also want to do some research on your own.
- Ask to see the seller’s disclosure. This will give you information on what repairs have been done and what defects the seller is aware of.
- Take a look at the type of fuel is used. Will you need to pay extra expenses for an oil tank? Is it electric?
- Is it public water/sewer? Or will you need to maintenance a septic tank and well system?
- Location. Is the neighborhood quiet or busy? Close to things of importance to you: family, grocery store, hospital, bar/nightlife?
- Is the home part of an Association. Is there a yearly fee?
- Do you notice any structural defects walking through? Will you need to budget for updating any rooms and how much money will you have to put out if you do?
These are some questions to be aware of when looking at homes. You must also keep in mind, that you will never find a perfect home and the chances to finding exactly what you have pictured in your head are very slim. There will be some things on your checklist that you will have to cut off. But it is about finding a home that has many things that are important to you and knowing that you can make it your own.
5. Placing an Offer. This is when having a good realtor comes in handy. Currently it is a seller’s market, but that can change and your real estate agent will be able to guide you and let you know how things are at the time. When you are up against other bids, some things that can help you stand out are: a strong deposit amount, a personal letter to the seller, a high, but reasonable offer, and to have few or no contingencies.
6. Inspection. So you’ve reached the point of your offer being chosen. I always recommend having a home inspected. It’s a big investment and you want to know if there are any hidden defects, especially if you are not handy to begin with. Again ask your agent if they have any recommendations for an inspector or go to friends and family for a referral. One thing to remember is that you want to look at any major issues that come up; don’t nit pick small defects.
7. Getting to Closing. Unless you are paying with cash, the biggest thing is staying on top of your mortgage lender and getting them everything they need from you to make it an easy transaction to close on your new home. Your real estate agent should also be there to guide you through the process and make things less stressful on purchasing your new home.
I hope these tips have helped you! If there is anything you think I missed, I would love to hear feedback!
Vita Semplice 