Should I Talk With My Bank Before Looking at Homes?
Yes. There are so many reasons why talking with your bank and getting pre-approved before looking at homes will help you in this process. Talking with your bank will help you figure out exactly how much you can afford when buying a house. This will also save you time when searching for a home so you are not looking at options that are not within what your bank will approve you for.
Speaking to a mortgage broker will help you understand the breakdown of the payment process. Anything you need to know about down-payments and mortgage payments, they will be able to assist and answer all your questions. Many first time home buyers are not aware of all the costs that come with purchasing a property. A mortgage broker can help you determine what type of financing you should be looking to get.
Is It a Good Idea to Buy Another Home Before Selling My Current One?
The answer to this question is that every situation varies. Although there is no concrete answer, there are many factors that you must consider before buying and selling your home which will help you determine which is the best path for you to take.
If you decide to purchase a new home before selling your current one, the good news is that you will already have a suitable property lined up to move into. This will help ease your mind and you will not have to rush or feel overwhelmed with trying to find another home after yours has been sold. With that being said, buyers will not always be granted the funding to purchase a second home until they have sold their currently owned property. This means that your purchase offer may be contingent upon the sale and transfer of your current home. This can also lead to disappointment if your home does not sell in time and you lose out on being able to purchase the new property if a non-contingent buyer steps in.
With that being said, you will never know how long it will take to sell your home because it’s very unpredictable. However, if your home does happen to sell before you have purchased your new one, this can put you in a good position and give you the leverage of being able to negotiate on the new home you are purchasing, as it will not be contingent to the sale on your current house.
If you do happen to sell your home before you purchase a new home, there are also options such as “rent back” that you can negotiate with the new owners purchasing your home. This essentially means that you can retain possession of your home for a certain amount of time after closing the sale at the expense of paying the buyers mortgage. This will buy you some extra time to find your new place if you haven’t already.
Should I Consider Looking For a Rent to Own Property?
Finding a rent to own property can be quite difficult. They are out there and do exist, but it will likely not be very easy to find. There are a few things to know if you’re considering agreeing to a rent to own property.
The owner of the property is taking a high risk when they offer a rent to own financing option. Often, the client’s credit score might not be very great. Therefore, since this is a risk for the owner, the terms of the deal will need to be favorable for them which might not be ideal for you.
If you are considering renting to own, you should be prepared to likely require putting a considerable amount of money down and pay payments with higher interest rates than what a lender could offer. At the end of the day, if you are able to purchase a home by getting your loan through a bank, you are much better off taking this route. Not only will you save money in the long run by having a lower interest rate, but the terms and conditions will be more favorable for you as well.
Can I Buy a Property Without a Realtor?
It is strongly recommended that you use a realtor when you are buying a home. After all, for most people, purchasing a property is one of, if not THE biggest investment of your life. Attempting to buy a home without a realtor can turn into a big headache and make the process much more stressful than it needed to be.
Realtors know exactly where to look to find you your dream home and have access to many more tools and websites than just anybody. They are going to help you with the negotiating process and everything else that comes along with buying a home. You may think that skipping out on hiring a realtor will save you money in the long run, however, this is often not true. What a lot of first-time buyers are not aware of is that often the seller is actually the one who pays for the realtor fees. You also need to consider your time as well if you choose to not hire a realtor to do the work for you. There is so much that goes into the buying process and it will likely be way more time-consuming if you don’t know where to begin.
How Many Homes Should I Look at Before Making a Purchase Offer?
There is certainly no right answer to this question. So many factors are taken into consideration when purchasing a home and there are also many requirements that will need to be met. For example, maybe you have children and want to be as close as possible to their school. Perhaps, you need a certain number of bedrooms to accommodate your entire family or something with a big yard or a view. Whatever is it you are looking for, it is important you find a home that meets your needs and is going to be as functional as possible for your lifestyle.
Buying a home shouldn’t be a rushed process and you shouldn’t feel forced to invest in something that doesn’t suit what you’re looking for. You should be 100% satisfied with what you are purchasing (even if this means looking at 100 houses before finding the right one). With that being said, this is not always the case and you shouldn’t feel like you are making a mistake if you choose to purchase the first home you see. It all comes down to whatever is best for you and only you can be the judge of that.
What Happens After Making an Offer?
Once you have made your purchase offer, 1 of 4 things can happen. The first thing that could happen is that your offer is accepted. In this case, congrats! This is the best scenario and the one that we all hope for. The second thing that could happen is a counteroffer. This essentially means that the owner has taken your offer into consideration but has responded with another price, (lower than the original) that they would be willing to accept. The third possibility is that your offer is rejected and lastly, the fourth thing that could happen is that the offer is not responded to, period! Scenario number three and four are more uncommon unless the owner is not satisfied (or possibly because they’re offended by a low-ball offer).
Should I Have the Home Inspected Before Agreeing to Buy it?
When buying a home, there are several types of inspections you may choose from and depending on what you are most concerned about, you might choose to have multiple inspections done. You may be thinking that you want to skip out on having the home inspected to save on some costs, however, this could actually end up being much more expensive in the long run if you discover issues with the property later on. At a minimum, it is always recommended that you should at least have a general property inspection completed before finalizing the sale. If you’re unsure about what inspections are appropriate to be done on the home you are interested in buying, ask your realtor what they suggest. For example, there are inspections such as chimney inspections, pest inspections, etc. If you are purchasing a house that is on the newer side, these additional inspections may not be necessary at all.