Home Buying Homework: What to do before putting in an offer

Buying a home is an exciting time for future home owners. There’s a lot of buzz surrounding the home buying process, which can unfortunately come with a bit of stress. Knowing what to look for can alleviate that stress and set you up for success.

Here’s three tips to consider before committing to a property…

Understand the costs

The most important thing you can do to set yourself up for success in buying a home is to get pre-approved. Getting pre-approved will give you a clear understanding of how much of a home you can afford based on the payment that fits within your budget.

Speaking with a lender will also help you understand other costs outside of a mortgage, such as the cost of taxes and insurance. Does the home have an HOA payment? All of this will need to be considered and fit into your budget.

Another factor to consider is future maintenance costs. If a home is in need of repairs, that should be factored into your budget as well. You should also consider cost of utilities for the home. Luckily, many homebuyers are able to obtain reports on previous utility costs so they have a good estimate.

Research the area

Researching a location and area is all about your lifestyle and your preferences. One of the most important considerations is where the property is in relation to work and school. Would you prefer a short commute? Can you easily pick children up after school on the ways home? Is it close to public transportation, if needed?

Once you have that nailed down, you’ll want to consider the dynamics of the neighborhood. Is a family-friendly neighborhood important to you? What about having shopping nearby. There is no wrong answer, it is completely based on your preference! With nearby shopping tends to come heavier traffic. But that also comes with convenience.

And lastly, always check safety reports. Many local government provide reporting on the frequency and type of crimes committed within their jurisdiction.

Inspect all aspects of the property

Home Inspection

In most cases, inspecting a property comes after an offer has been made, but before closing on the home. In that window of time in-between, you’ll want to look at a few crucial elements before signing off.

The first, and most obvious, is to have a property inspection done by a professional. A professional inspector will check everything on the homes exterior and interior. On the outside this includes examining the walls, foundation, roof, and drainage. On the inside, they will check the plumbing system, electrical system, HVAC, appliances, and so forth. 

In some cases, it would also be beneficial to have a pest inspection completed. This will check for harmful pests such as terminates that could cause damage to your property.

Title Search

A title search will need to be done on the property before closing to ensure there are no liens or disputes over the property’s ownership. You’ll also have the option to purchase title insurance which protects you against future instances of fraud. We recommend having a discussion with a title attorney to see if this is a good option for you. 

Proper Permitting

Another thing to check for is to make sure that all renovations and repairs were done properly and received the proper permitting beforehand. You don’t want to be stuck dealing with the previous owner’s lazy management.