Buying a house can be an overwhelming process, especially if
you do not know the knack of all the steps and procedures that go with it. Below
are some of the checkpoints one should keep in mind to make the process
smoother. After all, it is our dream home that we are searching and the journey
should be as rewarding as the destination.
CONSULT A GOOD
REALTOR
A dedicated realtor is the first and foremost requirement to
start your house hunt project. One can benefit a lot from the expertise and
research and inputs of the realtor. Your realtor if efficient would be able to
read your specifications and try and show you the houses that you might be
interested in. Also, their network of attorneys, lenders, appraisers etc. comes
in handy in the process of purchase. The sellers also have their realtors and
one can approach them, but always remember that the seller’s realtor is working
for the seller and not you and hence he would always be in favor of his client.
Your realtor is your knight in the shining armor. He is the one who would
communicate and negotiate on your behalf. You can read reviews of realtors in
your area on websites like Zillow or trulia and then take a call. If they are
associated to a real estate firm even better, as you can avail a wide range of
ancillary services provided by the real estate firm just through your realtor.
In other words, if you have managed to find a good realtor
believe me you are baking your cake and eating it too.
SHOP AROUND FOR
LENDERS
It is advisable to always get a pre- approval from various
lenders to be able to know what range of property to target. This would depend
on a lot of criteria like: the credit score of the borrower, the credit history
of the borrower, the percentage of down payment, tenure of the loan and also
the type of loan i.e. variable interest or fixed interest. Based on all these parameters you can choose
from FHA, Conventional or interest only loans.
Different lenders would give you different interest rates
and different quotes and they would also run a credit check. It is advisable
that you shop for the loan at the same time at all the lenders. Meaning if the
credit check is run then there would be a hard hit on the credit score. But the
rule says that the hit is affected every 13 days. Hence, get as many lenders as
you want within 13 days and complete your lenders shopping in just one hard
hit.
Again, if you have a good realtor who is tagged to a real
estate firm, you can use their network and also get customized loan plan.
THE HOUSE HUNT
I believe that no matter what, there is this one house which
is destined for you and that house would wait for you and no one else. If it is
going to happen it would. Be very clear on your criteria like the school
district, the age of the house, the look and feel, the number of rooms, etc. It
is very important that you and your realtor are on the same page as far as your
requirements are concerned.
When you are viewing the properties view them with your décor
and furniture in the mind. Minus the cosmetics of the house as you can change
the cosmetics to suit your requirement. For eg, you might not like the present color
scheme of the house, but that can be changed in few thousands of dollars but if
there is a defect in the elevation or you do not appreciate the floor plan then
definitely strike it out of the list. Always
give importance to things that cannot be changed like the floor plan, the
subdivision and the lot size. Rest all is cosmetics and can be changed.
We were lucky to have a great realtor who educated us on
these grounds. As a result of this you make a practical choice and stay close
to the market rate.
NEVER BUY THE MOST
EXPENSIVE HOUSE IN YOUR SUBDIVISION
This is a very important aspect. While you are hunting for
house you would often like the ones that are all upgraded and remodeled. But wait
and look around. Tomorrow when you would go out in market to sell that
property, you would not get more than the market price of that subdivision or
area. Hence try and be close to the market rate of the subdivision or the area
that you are targeting. As a result you would get the return on your investment
in future. If you end up buying the most expensive house in your subdivision,
you might have a tough time selling it as it is hard to justify the reason you
paid a premium while buying it and so you demand a premium while selling it. Remember
the buyer would not look at your house the way you looked at it while you were
buying.
THE INSPECTION AND
APPRAISAL
It is always recommended to get the property appraised and
inspected. It is in the buyer’s interest. The reason being, we as buyer do not
know the property that well as the seller. The inspection report clarifies
whether the property is in proper condition or not. The appraisal report would
determine the market value of the property. Hence, as a buyer you are assured
whether you are paying the correct price for the property or not.
THE CLOSING
This is the last step. On the day of the closing you give
your down payment check and after a lot of documentation, you are handed over
the keys of the house. Make sure you collect all the warranties from the
current owner and you transfer all the utilities under your name a day before
the closing. This brings to an end of the journey of buying a house.
We were very fortunate to have a great realtor by our side
who educated us through each and every step in this process. I hope this comes
handy to anyone who is in process of finding his dream house.
Good luck. Stay blessed.
