Things to do before you buy a homeBy | On May 27, 2010
- GET PRE-QUALIFIED FOR A MORTGAGE: This is a step that many prospective home buyers neglect. You may look at a home that you ‘fall in love with,’ but can’t afford. By pre-qualifying, you have an idea of what price range you are looking for in a new home.
- FIND A REALTOR: Ask your family and friends if they know a good Realtor. A Realtor can be a valuable asset in finding the right home for you.
- LOOK FOR A HOME: Start the search for your dream home, but be aware that some homes are members of a ‘neighborhood association’, that may charge a fee for membership. This may pay for maintenance of roads, recreational facilities, or security.
- ENTER INTO A PURCHASE AND SALE AGREEMENT: Offer a price you can afford, work out any ‘Special Conditions’ with the Realtor, then contact an Attorney BEFORE you sign the contract. As it states on the contract “This is a legally binding contract”. Please note that once you sign, and change your mind about the home ‘without cause’, you may lose your deposit.
- HAVE A HOME INSPECTION An inspection of the home you’re planning to buy is a critical part of this process. It alerts you to problems you can arrange for the seller to fix, and may provide your with information that causes you to forgo the purchase all together. Ask your realtor, friends, and family to recommend a home inspector, and make sure you get a home inspection report when the purchase and sale agreement requires.
- HAVE A PLOT PLAN PREPARED: A Plot Plan is performed by a surveyor, which lays out the property lines, and lets you know if there are any encroachments on the property. Many people think this is a waste of money, but here are two examples, which came through our firm in the last year. The first was a client who purchased a second home, for vacation purposes. His wife fell in love with the tennis court, which came with the home. After the plot plan was completed, it was discovered that the tennis court was in fact located partially on the neighbor’s property. The second example was a client who purchased a home, and after a plot plan, it was determined that a neighboring building was located on our client’s property. Buyers show know about these kinds of issues BEFORE the buying a home.
- DEALING WITH THE BANK: We will work with your bank, preparing the documents needed for the closing. Once they are completed, you are ready to buy your new home.