10 things i wish i knew before buying a house

October 2019 / Issue 10 / Volume 2

10 THINGS I WISH I KNEW BEFORE BUYING A HOUSE

1. Get pre-approved first It might be tempting to start hitting open houses every Sunday, but before beginning your search, get pre-approved for a mortgage. Otherwise, it's possible to fall in love with a place before being prepared to put a serious offer in.

Ask around for recommendations on trustworthy mortgage brokers, then set up a time to talk with each one. If they won’t provide concrete information about their fees or if they start giving advice before fully understanding your financial situation, keep looking. Ultimately, a good broker will save time and money by researching loan terms and rates from several different lenders.

2. Work with an experienced agent Sifting through online listings is a great start, but don’t underestimate the value of working with an experienced agent.

They will help navigate the confusing process of buying a home and once you find a place you love, they can research comparable listings, advise on what your opening offer should be and negotiate on your behalf.

To find the best one, make a short list of possible agents based on word-of-mouth recommendations. Then meet with them in person to get a feel for their personality and their knowledge of the neighborhoods.

3. Don’t be turned off by an ugly bathroom A funky paint color or questionable design choice can cause a buyer to overlook a home that’s otherwise brimming with potential. Remember, cosmetic changes are easy to make once you are moved in, and pointing out any dated features can actually help in the bidding process.

Instead of focusing on the pink-tiled bathroom or that ugly light fixture, pay more attention to the layout of the property, the views, the amount of sunlight rooms get, ceiling height, outdoor space and location.

4. Find out about the neighbors Once you find a home you love, visit the neighbors to make sure it will be a livable situation. It also helps to visit the neighborhood at different times of the day to get a better feel of what life there is really like.

5. Be prepared to move fast Properties often receive multiple offers after the first open house, so it's possible to miss the chance to throw a bid into the ring. Include a pre-approval letter in the offer so the seller knows it's serious. If there is a lot of interest in the home, write a letter to the seller explaining why you’d be the best next owner — a personal connection can work wonders.

6. Be careful about overbidding If you plan on financing your home and get caught in a bidding war, beware that overbidding can come back to haunt you.

The bank will require an appraisal of the home and if it comes in under the amount of the loan you need, you might have to make up the difference in order to close the deal. Before you make a bid, research comparable listings or ask your real estate agent for advice.

7. Expect a ton of paperwork When applying for a loan, be ready to provide a ton of paperwork, including tax returns, pay stubs and proof of your current assets. "It's like signing away for your first born," said Britt Jagodnik, who owns a home in New York.

It is also not the best time to switch jobs or rack up a lot of debt with any big purchases, since your income and credit will be closely scrutinized.

8. Hire an inspector Protect yourself and hire a professional inspector or engineer to look over the home before you sign on the dotted line. Their inspection will help expose potential problems that could cause you a lot of grief and a ton of money down the road.

9. Expect to feel broke It's surprising how quickly costs add up. "Fees for $250 here, $400 there become as commonplace as $4 lattes," said Northrop.

Besides the down payment, there is the deposit, appraisal, inspection, attorney, movers and more expenses in addition to the buying price. Additionally, most lenders ask that a buyer has enough to cover at least two house payments after closing, which means there needs to be extra money in the bank. Go over all of the closing costs with your attorney to avoid sticker shock.

10. It will feel like it will never happen Buying a home is not for the faint of heart. Finding the right place takes time, and once you find it, you can easily get outbid.

Just remember that new inventory is always coming onto the market and, eventually, there will be something you love.Â

Sources: https://www.today.com/series/things-i-wish-i-knew/10things-i-wish-i-knew-buying-house-t111094 https://artesiantitle.com/