Before you buy a house, there are some things to consider. Be sure you know what you’re doing to avoid costly mistakes down the road.
Before we buy a house we usually visit the house and the neighborhood on several occasions, during different times of the day. We look around to see what kind of traffic there is, what kind of neighbors live in the area, if people are walking the streets, and various other things to see if it is a place we would want to live for a while.
We also pay attention for things like rotted wood, the roof’s condition, and items that may need to be replaced right away. We check out the appliances and their manufactured date, especially the heating and air conditioning units.
Clark Howard also has some tips for home buyers.
- Get a copy of your credit reports four to six months before you start home shopping and pre-quaify for a mortgage before you start looking.
- If you’re buying a house strictly for financial reasons, look at each house you’re considering as you would evaluate a purchase of stocks or bonds.
- Don’t buy one of the first houses in a subdivision. The developer may go bust and be unable to complete the development.
- Make any offer on a home contingent on its passing an inspection. The purchase also should be contingent on your ability to get financing at or below a set interest rate.
- Get an owner’s title insurance policy that covers you, not the lender, if your ownership is successfully challenged.
- Hire a real estate attorney to review the closing papers and, if you’re buying a house still under construction, to draft or review the purchase contract.
- Before you buy a house, try your commute to work during rush hour.
- Learn about the area surrounding a potential purchase, including the potential for new roads or new development.
- Look at a property while it’s raining to see how water flows across it. Look for signs of poor drainage and danger of flooding.
- Buy a house that’s fundamentally sound in construction and materials, even if it doesn’t have the latest, greatest design features.
Be sure to check out Money Saving Insurance Tips for Home Buyers.