Posted 7.11.13 @ 9:10
When you’re looking at buying your first home, you’ve got a lot of work cut out for you. You may not know what and where you should buy, what the right prices are for a given property and what you need to do to make sure your investment is protected – but that’s where we come in! We’ll help you make sure you’re getting the home that’s right for you. It all starts by breaking down tasks into easy, manageable little bites that you can take care of.
Nail Down Financing Early
Financing is important and should always be your first step!
Do you know how much home you can afford? If not, now’s the time to find out! Ask friends and family about where they got their mortgages and what kind of experience they had with it. Think about working with a mortgage broker to see what kind of deal you can get.
Understand the differences between pre-qualifying and pre-approval with mortgages. Anyone can be “pre-qualified” to walk in the door, but pre-approval is as good as gold when it comes to mortgage amounts. This way you’ll know how much you have to spend and where you need to start house hunting.
Even if you’re considering going with an all cash offer, it’s still smart to see how much you could pre-qualify for.
New Home or Newer Home?
Once you know what your budget is, you’ll have to decide if you want to go for a new home or a newer home! Do you want to build one from scratch, do you want a home built in the last 10 years or do you want something older? When it comes to luxury homes for your sale you’ll have your pick; just remember that each kind of home has its own character, charm and troubles.
If you’re looking at a brand new condo, make sure that you’ll be able to wait the 18-36 months before it’s completed; the same goes for a house. Some of us can get a little wrapped up in what might be and forget about all the trouble we may end up with in the mean time!
Do Your Due Diligence
You’ll want a home inspector and appraiser that works for you, not the seller. While it might make sense to use the one they’re using, don’t do it! Make sure the one that’s doing the evaluating has your best interest at heart.
You’ll also need to do research on the area; are there environmental hazards you need to know about, if there are new developments coming to the area, or anything else that could cause you trouble later.
Protect Your Investment
You’ll want to make sure you take out both homeowners insurance as well as title insurance. Title insurance protects you just in case the seller doesn’t actually have the right to sell this property. The homeowner’s insurance will protect the structure of your property too! If you’re looking at protecting the contents, you may want to find a good renter’s policy; these will also cover the inside of a condo.