First of all, let me say “CONGRATULATIONS!” This is a huge milestone and likely the most important financial decision you’ve ever made. Buying a home can be full of highs and lows. For first time home buyers, here are some key points to be aware of no matter where you are in the process.
LOCATION, LOCATION, LOCATION Decide on the area you want to reside. (Proximity to restaurants, grocery stores, church, pharmacy, good schools, low crime, parks, etc.) This will vary greatly, as some folks desire to live in the country, away from people and nightlife, while others seek the city and a faster pace. If you are seeking maximum return on your investment a good rule of thumb for home investors, including homebuyers, is to buy property in the path of progress. If you research and do your due diligence, you may be able to build or buy a home in which the area or neighborhood is growing or extremely desirable due to low crime, proximity to various businesses, expansion of job opportunities, or repair of the roads, lights, signage, etc.
REVIEW YOUR BUDGET Determine if you can comfortably afford the mortgage payment. Property taxes, home insurance, any HOA fees, and other costs of maintaining a home need to be evaluated before any purchase (remodeling, down payment, etc.).
LAND SURVEY It is vital to know the property boundaries. This is needed should you decide to make changes on the property, such as build a fence, garage, pool, etc. Additionally, you’ll want to avoid any issues with your neighbors.
AREA SURVEY Review any building plans for the neighborhood and surrounding area. Questions to ponder: Is a playground in the works? Restaurants? Nightclubs? Retail? Mobile home parks? Manufacturing plant? Each of these can impact the value of your home and your quality of life.
INSPECTION An independent inspector should inspect the home thoroughly for any items needing repair or replacement. Take this very seriously, and address any/all items in advance, and before proceeding. Typically, once the inspection is complete, negotiation continues with the seller on the appropriate price. (Expect to pay between $300-600 for an inspection.)
THINK ABOUT RENOVATIONS Ensure any renovations were professionally done. Do-it-yourself remodelers looking for a quick fix often use low-quality materials. Is the individual licensed and bonded?
WRITE IT DOWN Protect yourself by getting every part of the sale in writing and reviewed by your realtor.
GET A QUOTE AHEAD OF TIME Get a detailed homeowner insurance quote. Here is a list of items to know/provide your agent for the quote.
Knowing the items below will help ensure you have the correct quote, save you time in the long run, and help avoid any gaps in your coverage.
Members login below for a comprehensive checklist of 13 items you need for an accurate homeowner insurance quote, what to look for in the quote, how to evaluate the quote for accuracy, credit reports and more.
Premium Content
You must be a member to access this content. Subscribe now for instant access to all premium content!
Contact us today!