Facts All Buyers Should Know
There are many moving parts in the process of purchasing a home. Some things may be obvious while others may not be, especially if you are a first time buyer. Here are 9 things that you will want to be aware of as you plan to buy your home.
Some conditions may not be met
Sometimes conditions are placed into a deal like having carpets professionally cleaned. These smaller types of things are hard to do anything about if they weren’t completed by the seller by closing time unfortunately. However, if a large repair was supposed to be made and wasn’t then you can either not take possession of the home or you can have funds placed in escrow until work has been completed.
Something will happen
Moves are never perfect, just like life. You may forget to do something, some valuable may get broken by your mover or the like. Preparing yourself up front and setting expectations can help you deal when and if it does.
You must have closing fees
When you do your budget, be sure you have money allocated for your closing fees in addition to your down payment. Your lender should be able to give you a more firm cost estimate.
Good schools have a positive effect on value
Homes located in a good school district will often cost you more. However, the good news is when you decide to sell you will be able to reap these benefits too.
Neighborhoods can change
This can be a good or a bad thing and sometimes that can be dependent on your own lifestyle. Check with the local administration for upcoming plans in the area. See if parks, playgrounds, new developments and the like are in the works.
Read all documents
While your lawyer will review all documents, it is wise for you too as well. For example reading meeting minutes of the HOA can alert you of any plans in the works such as assessments, increases in fees or the like. These are good things for you to know about your future.
Refrain from spending
Just because your offer was accepted doesn’t mean you have the new house. You were pre qualified for the loan based on your financial status at that time so don’t go opening new credit cards or buying a brand new car just yet. Wait until after your closing so you don’t jeopardize losing your loan.
Neighbors may be your best resource
When you are researching your new home it is a good idea to walk around the neighborhood, observe and talk to some of the residents. You can get a feel for the neighborhood history and how things are to see if it is a good fit.
Check for rebates or financial assistance
Check for any rebates that you may qualify for. This applies to any utility or appliance programs to any mortgage or financial assistance that you could be eligible for. Ask when setting up utility accounts as well as when you first reach out to your lender.