3 Tips About Buying Single Family Homes
Posted on: 28 September 2021
Buying a new home is an exciting time. Whether or not it is your first home, the process can feel like an emotional rollercoaster. From the exhilaration of the house hunting journey, the nerve-wracking negotiations on price, and the stress of closing on time, buying a home is quite the ride. The following tips are classic advice but can easily be forgotten in all the excitement.
1. Work with a real estate agent.
No matter what well-meaning family and friends may have told you, working with a licensed real estate agent is key to navigating the entire home buying process. Large transactions, like purchasing a home, are not everyday occurrences for most people. Therefore, you need an expert to guide you every step of the way and to advise you throughout the process. Plus, while your judgment may be clouded by emotions or indecision, your agent can see things clearly and offer an often much-needed, non-biased opinion.
Furthermore, working with a real estate agent on the 'buy-side' does not cost anything. Your agent's fees are paid for out of the seller's proceeds at closing.
2. Get a home inspection.
Once you have decided on a home and negotiated a selling price, you need to have the home inspected. A home inspector looks over the entire structure to make sure that it is solid. Inspectors examine the foundation, roof, windows, and all mechanical systems, including the furnace, plumbing, and electrical.
Unless you are buying new construction, there will be minor issues with the home that the inspector will point out to you. This is to be expected. Your objective is to have an expert make sure there are not any major issues or defects with the house.
You can also order separate, additional inspections for a well, a septic system, or radon testing, if applicable.
3. Have access to cash reserves.
While saving money to buy a home is hard work, you need more cash on hand than just the down payment. In addition to those funds, you need money for the inspection, closing costs, pro-rated property taxes, homeowner's insurance, homeowner's association dues, mortgage lender fees, and more. Ask your real estate agent to help you estimate a total due at closing.
Furthermore, your mortgage lender may require that you have additional cash reserves in a savings account equal to at least six months of mortgage payments.
Keeping these three tips in mind before you start the hunt for your new house can make the entire process run smoothly. To learn more about single-family homes, contact a real estate agent.
Share