Top 7 things to know when purchasing a new home:
- Hire a trusted and knowledgable realtor. Typically when people get in to trouble when purchasing a home with a realtor, it is because of ignorance more than malice. Does your realtor know about the local market? Can you build a well? An additional dwelling unit? What are the zoning regulations and how do you find out more? We do! We work closely with Government Affairs as well as Public Works.
- Getting approved for financing. Do you know the difference between pre-qualified and pre-approved? What are does is take to get approved at a credit union vs a traditional lender? Do you qualify for state and local programs? Knowing the difference between your options can potentially save you tens of thousands over the course of your loan, seriously. Make sure you hire a trusted lender as well as a realtor who understand the various programs in your area.
- Nothing beats seeing a house in person. Look, I love getting online and looking at houses as much as the next person however nothing compares to seeing them in person. A photographer can make or break a house. A good photographer will make an ugly house pretty and a bad one will make a great house look like a dumpster fire. Other things to consider are smell, the neighbors and just getting a feel for things on the ground. We find that our savviest buyers will look at a minimum of 3 houses before making an offer just because of those things we don’t know we like yet because we have never seen them.
- ALWAYS HAVE AN INSPECTION. I can’t stress this point enough. Even if you don’t choose to work with us, please have a right to an inspection in your contract. Besides protecting you from things that you might not be able to see, it is an option to safeguard your earnest money placed in escrow. Be sure to work with an agent who will be competent in regards to protecting your interests.
- Don’t buy a car or wrack up a ton debt on your credit card. Large purchases or irregular things happening with your credit can impact your ability to purchase a home. Listen to whatever your lender tells you to do.
- Understand that you as the buyer, are typically responsible for paying closing costs and these add up to about 1% of the purchase price. What is included in this is title and escrow was well as underwriting the mortgage. Title and escrow is a little complicated however what they do is act as a third party where the exchange of money and title happens between all parties. They also check the title on a property; was there a gas station there? Any recorded encumbrances or lost relatives who might have a claim on your future property.
- Use an agent, you don’t pay our commission! The seller is responsible for paying all commissions so you might as well have someone who has a fiduciary obligation to protect your interests.