Buying a new home especially for the first time is very big deal and you want to be as prepared as possible. It appears all so easy when you are reading about it, until you roll up your sleeves and get into the thick of things. Usually, it involves much more than a bidding war between the buyer and the seller. Before buying a new home, there are the seven most important things you should know. That way, you will not be over
Deals do not always go through. Sometimes they fall in the very last minute
Even after the seller has accepted your offer and you think you are half-way through the test, there is still a long way to go and it is not guaranteed that you will get the house. You now have to see the bank for appraisals, get the engineering inspections done, your lawyers have to meet with the seller’s lawyers and a lot more has to happen before the house can become fully yours. Before this process is complete and it could take a few months, you are still not on safe ground because should the seller’s party decide to walk away from the deal, it would flop. Something could also arise and cause you to walk away.
Get All Of Your Financial Records In Order
You should know that your financial records will be seen and scrutinized from top to bottom. If you have pending credit card debt, pay it off. You will also need to get your tax return records straights, probably for the last few years because the other side might ask to see them.
You also need to get the mortgage lender to give you a pre-approval before going to make the offer. You should also be aware of all the paperwork that will be needed and this could even include professional and personal recommendation letters. In short, be ready for a serious scrutiny when buying a new home even if it is a condo. Gather your paperwork so that you have everything that may require to be seen.
Know About The Closing Costs
Before you get carried away by the joy of owning a new home, you should know that there are closing costs to consider and these may even be as high as up to 5 percent of the total price. The buyer bears these costs. So whatever amount of price the seller has quoted for you, add another 5 percent to that for the closing costs. In some places, it could be 2 percent, but usually it starts at 2 to 5 percent.
You Need To Ask For Environmental Testing And Inspections
Because it is you who will live in the home that you are buying, it is upon you to call for inspections and pay for the same too. You want to be sure that the structural framework is in good condition. You also want to ensure that the home is up to the required environmental standards, the deck is up to standard and so on. Remember, it is not the prerogative of the seller to disclose any issues with the aforementioned areas, but it is your duty to pay for inspection and bring any issues up.
You Need The Services Of An Agent
The real agent that you will hire plays a very important role, more than just showing you a new listing. He or she will be very aggressive and in the bidding war, you will realize that he will contribute quite a lot to closing the deal. He can also help to get the asking price of the seller lowered. Besides, there will be some technical jargon flying around, which you may not understand, but your realtor will.
Do Not Use Up All Your Savings Paying For The New Home
Even if the home is fairly new, you will find that you will still have to make some changes and they require money. You will also need to keep the number of your plumber and handyman close as you will require them to explain many things like whether the stove runs on electricity or gas, whether the HVAC is ok and so on. First homes are like that, but the second and third homes will be less confusing.
There Is Always Another Property Blowing You Away
You might think that the first listing that you have found is great and you will be swooning with love. Wait until you see the second one and it knocks you off your feet straight away. So, look at a few properties before you decide on “the one.” If you feel that a deal isn’t quite right the way you would want it, just walk away first. By the time you come back, the house will still be there, or you may find a better one.
These are some common scenarios when you go for buying a new house. So, keep these in mind when you go for buying a house next time. In case you are planning to have a home in a busy area of a popular city, you may find houses very costly. In that case, you can consider buying a condo. Condos are normally located in popular locations in city centers and you can find condos in much affordable prices than a regular house. If you are interested in having a condo in Los Angeles, check out this huge list of condo sale Los Angeles. If you are more particularly interested in Santa Monica condos, check this listing of condo sale Santa Monica. Go for condos when you have tight budget but you want to live in a city center in popular cities across the United States.