9 Things All Buyers Need to Know
It is no secret that there are a lot of moving parts in the process of buying your new home. Some things may be more clear while others may not be, especially if you are a first time home buyer. Here are nine things that you will want to know as you get ready to buy your next home.
Some conditions may not be met
On occasion conditions will be worked into a deal like having the carpets cleaned. These smaller things are hard to do anything about if they weren’t done by the seller by closing time unfortunately. However, if a larger, more significant repair wasn’t completed then you can choose to either not take ownership of the home at closing or you can have funds placed in escrow until the work has been done.
Something is going to happen
Nothing is ever perfect so you may forget to do something on your end, a possession of yours may get broken by your mover or something similar can occur. Prepare yourself earlier on and manage your own expectations so you handle this best when and if something happens.
You must have closing cost funds available
When you do your budget make sure that you have money for your closing costs in addition to your down payment. Check with your mortgage broker as they will be able to provide you with a more firm cost estimate.
Good schools have a positive effect on home values
Homes that are located in a good school district will often cost you more. However, the good news is that when you go to sell you will be able to reap these benefits too.
Neighborhoods can sometimes change
This can be good or bad, but it just depends on your lifestyle. Check with the local administration about any future plans for the area. Check if any parks, playgrounds, new developments and the like are in process to be erected.
Review all paperwork
Your attorney will read all documents, but if is a good idea for you too. For example, reviewing the meeting minutes of the homeowner association (HOA) can help prepare you for any plans in the works such as future assessments, increases in fees or similar.
Refrain from spending
Just because your offer was accepted it doesn’t mean that you have the new house. You were prequalified for the loan based on your financial status at the time of applying. Therefore, don’t open any new credit card accounts or buy that new vehicle just yet. Do these items after your closing so you don’t risk losing your loan.
Your neighbors may be your best resource
When you are previewing your new property take a look around the neighborhood and speak to some of the neighbors. You can get a good feel for the neighborhood and just how things are to see if it is the right fit for you. See what they say, how long they have lived there, any common concerns, etc.
Check for rebates or financial assistance
See if there are any rebates or financial assistance that you may qualify for. This can be anything from a utility or appliance program to mortgage assistance that you could qualify for. Ask when setting up your utilities as well as when you first contact your lender.