MORTGAGE BLOGBlog posted On August 08, 2024
After years of saving bit by bit, chipping away at debt, and boosting your credit score in preparation for buying a home, you’ve finally gotten to a good place. It’s time to wave goodbye to landlords and purchase your new home! Where do you even begin? It’s such a big life decision, and you want to make sure you find a home that checks your most important boxes while avoiding money-draining surprises. To help you determine your future home with confidence and clarity, let’s look through home buying green and red flags.
Preapproval
You’ve likely considered the house sales price in your home buying prep. If you’ve set up a preapproval letter with your lender already, you’ll be able to reference the maximum loan amount you qualify for. If not, we’d love to help you get started on the preapproval process. Preparing to take out a mortgage loan can be aided tremendously with a preapproval letter, which will help you set realistic expectations during your home hunt on what you can and can’t afford.
Locational Attributes and Drawbacks
The location of your new home can make a large difference in your day-to-day. How long is your commute from work? If you have children, are you moving into a highly rated school district? What is your proximity to grocery stores, parks, and restaurants? Do you mind living next to a busy highway, or do you prefer a quieter neighborhood? All things to consider and rank from most important to least important. Where you live can significantly raise or lower the sales price, so keep all that in mind while home hunting.
Poor Maintenance & Foundation Issues
Keep a sharp eye as you complete your walk-through with sellers. Do you see any cracks or large gaps in the foundation? What condition is the home in? Can you spot any signs of water damage along the walls and ceilings? Be sure to check for mold lurking around faucets and pipes. Learning to sniff out potential costly repairs and renovations could save you from making the wrong choice. Additionally, an experienced real estate agent should be able to help you evaluate homes and ensure that you’re viewing houses that meet your criteria. A home inspector can also perform a thorough review of the home’s structure, roof, AC/heating, and various other components.
Outdoor Components
Some exterior criteria to consider with your home: What is the parking situation like? Are you guaranteed a space, or will you have to park on the street? Or is a garage a top priority for your home checklist? Do you have dogs and require a backyard? Have you checked out the roof? A home inspection doesn’t always include the roof during the evaluation, so make sure to request this from the inspector. According to Ramsey Solutions, the “average cost to replace a roof is about nine grand,” which could clear through your savings.
After going over these buying tips, the refresher below includes a few warning signs to keep in mind during home hunting.
Red Flags
After taking all of these factors into consideration, you should be well-equipped as a prospective homeowner. If you do decide on a home that needs a few tweaks and repairs, we’d be happy to discuss our renovation loans with you. Our HomeFundIt™ program could also help you with raising money for your down payment, allowing you to buy a home sooner. Best of luck on your home buying journey!
Source: Forbes, Ramsey Solutions
