10 Things You Need to Know When Buying a Home

If you are in the market to buy a home, you know it’s easier said than done. There are a few things to keep in mind and get ready for as you begin your new home search.

Get pre-approved for a mortgage loan

Before you fall in love with a home, set up a credit score consultation with a loan officer. Nickie Sjogren at Calibar Home Loans offers this as a free service to potential buyers in the Tri-Cities. Read BLOG ARTICLE. With the help of someone who knows what lenders are looking for, you can find out how much you are qualified to borrow and get a pre-approval letter to begin your home search. Real estate agents and home sellers won’t take buyers seriously until they have a formal lender-validated letter in hand. This letter must accompany any offer you make on a house you want to buy.

Hire a real estate agent in the area

The next step is to find a local agent who is familiar with the market you are interested in. This alone can be a process, so make sure you are well informed, you know what questions to ask, and you find someone who is experienced and trusted.

Know What You Are Looking for

This is very important. There are a lot of options out there and you must narrow the search by making a list of your ideal home features. We recommend that you jot down your housing requirements and price range according to your lender. What are your must-haves? And then, what are you willing to compromise on and let go of. The best way to do this is to list each item you must have in your new home by priority. Then, of course, communicate those preferences to your real estate agent.

Consider the Costs of Homeownership

Owning a home or even a condo costs more than just the mortgage payment. Be prepared to do your due diligence and budget with educated numbers. In addition to your monthly payments, consider the utilities, homeowners insurance, and Home Owner’s Association (HOA) fees, if any. What about transportation and cost of living in your new neighborhood? Always plan on some upgrades, repairs and necessary maintenance such as lawn mowing, pool cleaning and irrigation service.

Location Is Most Important

A home is only as worth as much as it’s neighborhood. So be sure that you purchase a home in a neighborhood that has good resale value. Again, make a list. What kind of neighborhood would you like? If you have children, having a school nearby is probably very important to you. How far are you willing to commute to and from work? And what is the overall feel of your ideal community? Communicate these desires to your agent and spend some time in these areas to make sure this is where you can imagine yourself living.

Know Your Loans and Financing Options

Let’s face it, every home loan advertisement looks great on paper. But what is the fine print? Make sure you know your interest rates, fees, down payment requirements and penalties. Your lender will go over these with you, but don’t be afraid to ask if something is not clear. Also, don’t be afraid to shop around and turn down loan offers that seem troubling or confusing at best.

Obtain Full Home Disclosure and Inspection

By law, home sellers are obligated to disclose defects they know about the home or condo that you are buying. However, there may be additional costly repairs and foundation problems that the current owner is not familiar with. So, in addition to getting a report on potential problems, be sure to hire a home inspector who will come out to physically inspect the home. The buyer pays for the home inspection, but sometimes the seller will agree to cover the cost of repairs. Don’t skip this step; you want to have knowledge of any potential problems before you buy! Another way to achieve peace of mind is to have the seller provide a home warranty policy to cover major repairs for a full year after the sale. 

Get Everything in Writing

Real estate jargon can be confusing. Get it all in writing and if you don’t understand something, make sure to ask your real estate agent. To buy a home, it is imperative that you collect each piece of information and the overall transaction in writing so that you are covered in case something goes wrong.

Take These Steps Before “Closing”

Before your purchase is final, make sure that you are able to purchase home insurance. In addition, consider purchasing a your own home warranty policy, even if it’s not provided by the seller. And finally, do a walk-through two-three days before signing final loan documents to ensure the home is in the same condition as it was when you initially agreed to buy.

Know Your Mortgage Payment

Don’t forget that your final mortgage payment may include property taxes, HOA dues, homeowner’s insurance, irrigation assessment, and potentially PMI. Make sure you work this out with your loan officer. Ask lots of questions to ensure you fully understand this financial obligation.

Get Excited; You’re a Homeowner

Most importantly, get excited. You will now be a proud homeowner and this is a big accomplishment.

If you are in the market to buy a home, you know it’s easier said than done. There are a few things to keep in mind and get ready for as you begin your new home search.

Get pre-approved for a mortgage loan

Before you fall in love with a home, set up a credit score consultation with a loan officer. Nickie Sjogren at Calibar Home Loans offers this as a free service to potential buyers in the Tri-Cities. Read BLOG ARTICLE. With the help of someone who knows what lenders are looking for, you can find out how much you are qualified to borrow and get a pre-approval letter to begin your home search. Real estate agents and home sellers won’t take buyers seriously until they have a formal lender-validated letter in hand. This letter must accompany any offer you make on a house you want to buy.

Hire a real estate agent in the area

The next step is to find a local agent who is familiar with the market you are interested in. This alone can be a process, so make sure you are well informed, you know what questions to ask, and you find someone who is experienced and trusted.

Know What You Are Looking for

This is very important. There are a lot of options out there and you must narrow the search by making a list of your ideal home features. We recommend that you jot down your housing requirements and price range according to your lender. What are your must-haves? And then, what are you willing to compromise on and let go of. The best way to do this is to list each item you must have in your new home by priority. Then, of course, communicate those preferences to your real estate agent.

Consider the Costs of Homeownership

Owning a home or even a condo costs more than just the mortgage payment. Be prepared to do your due diligence and budget with educated numbers. In addition to your monthly payments, consider the utilities, homeowners insurance, and Home Owner’s Association (HOA) fees, if any. What about transportation and cost of living in your new neighborhood? Always plan on some upgrades, repairs and necessary maintenance such as lawn mowing, pool cleaning and irrigation service.

Location Is Most Important

A home is only as worth as much as it’s neighborhood. So be sure that you purchase a home in a neighborhood that has good resale value. Again, make a list. What kind of neighborhood would you like? If you have children, having a school nearby is probably very important to you. How far are you willing to commute to and from work? And what is the overall feel of your ideal community? Communicate these desires to your agent and spend some time in these areas to make sure this is where you can imagine yourself living.

Know Your Loans and Financing Options

Let’s face it, every home loan advertisement looks great on paper. But what is the fine print? Make sure you know your interest rates, fees, down payment requirements and penalties. Your lender will go over these with you, but don’t be afraid to ask if something is not clear. Also, don’t be afraid to shop around and turn down loan offers that seem troubling or confusing at best.

Obtain Full Home Disclosure and Inspection

By law, home sellers are obligated to disclose defects they know about the home or condo that you are buying. However, there may be additional costly repairs and foundation problems that the current owner is not familiar with. So, in addition to getting a report on potential problems, be sure to hire a home inspector who will come out to physically inspect the home. The buyer pays for the home inspection, but sometimes the seller will agree to cover the cost of repairs. Don’t skip this step; you want to have knowledge of any potential problems before you buy! Another way to achieve peace of mind is to have the seller provide a home warranty policy to cover major repairs for a full year after the sale. 

Get Everything in Writing

Real estate jargon can be confusing. Get it all in writing and if you don’t understand something, make sure to ask your real estate agent. To buy a home, it is imperative that you collect each piece of information and the overall transaction in writing so that you are covered in case something goes wrong.

Take These Steps Before “Closing”

Before your purchase is final, make sure that you are able to purchase home insurance. In addition, consider purchasing a your own home warranty policy, even if it’s not provided by the seller. And finally, do a walk-through two-three days before signing final loan documents to ensure the home is in the same condition as it was when you initially agreed to buy.

Know Your Mortgage Payment

Don’t forget that your final mortgage payment may include property taxes, HOA dues, homeowner’s insurance, irrigation assessment, and potentially PMI. Make sure you work this out with your loan officer. Ask lots of questions to ensure you fully understand this financial obligation.

Get Excited; You’re a Homeowner

Most importantly, get excited. You will now be a proud homeowner and this is a big accomplishment.