Of course, the very first thing to do when you’re ready to buy a home is call Atlanta Peach Realty! The following is a list of a few of the important items I make sure my home buying clients know before buying a home.
1. Get Prequalified for a Home Loan
I always advise the first thing to do BEFORE you begin your new home search is to talk with a mortgage lender. This is a very important first step for two reasons. First, you need to be confident you are pre-approved for a home loan and understand the amount of pre-approval. People are often surprised at the amount of home loan they qualify for. Sometimes it may be far more than you expected and sometimes it can be less than you expected. Either way, it is the information you need in order to determine what price range to use for your home search.
Also, many buyers don’t realize that a pre-qualification letter from a lender has become a standard, and often required, part of an offer package to a seller. Unless it is an all cash offer, sellers want to know they are dealing with a buyer who will be able to get the home loan they need to buy the property. Having the pre-qualification letter ready to go when you begin your home search means you will be able to put an offer on a home as soon as you find the home you want. I have seen people get frustrated many times when they are ready to deliver an offer on a home and instead they have to wait several days to get a pre-qualification letter and may lose the property they’re interested in. I don’t let that happen to my clients by suggesting we get the pre-qualification ready up front.
2. Use a REALTOR®
Of course you expect me to say this because I AM a Realtor! One thing I remind all first time home buyers is that, with very rare exceptions, working with an agent to buy a home does not cost you anything! Knowing this, I hope you agree there is never a reason to buy a home without an agent working on your behalf.
Buying a home is the largest single investment many of us will make in our lifetimes. Even the most savvy and experienced home buyers have many questions and concerns surrounding the process and what to expect. As your agent, I take my role as your advocate in the home buying process very seriously. My number one mission is to work on your behalf to negotiate the best terms and price for the home you want. I am also here to answer any and all questions you have about buying a home. Every home buying experience is different and you want an agent who is prepared to support whatever your home buying goals are.
3. See Beyond What You See
I often have to remind my clients about this and I am often guilty of it myself. I am not the kind of person who can walk into a room and see it transformed into the best use of space and interior design. If I walk into a room with old furniture, outdated wallpaper and stained carpet, that’s exactly what I see! However, when we’re looking at homes we have to try to see beyond cosmetic flaws in order to really appreciate the potential of a home. Things like carpet, wall paper, paint color, and obviously the previous owner’s furniture are all things that can be easily removed or changed to fit your tastes when the home is yours. Having an open mind is so important when we look at homes so we don’t pass up on a good house that can easily go from good to great with a little effort.
4. Understand the Benefits of Owner’s Title Insurance
Title insurance is something optional you can purchase at the time of closing when buying a home. In my experience, no one takes the time to make sure you understand title insurance and why you should seriously consider purchasing at the time of closing. The purpose of title insurance is to protect you against financial loss if there is a defect in your home’s legal title. For example, if you purchase your home and later find out that the home legally belonged to someone else at the time of your purchase, you will be protected against financial loss if you are unable to keep the home. This may sound like an extremely rare scenario but title defects are more common than you may think. So common in fact that nearly every mortgage that is issued in this country will have lender title insurance. The lender title insurance does NOT cover the buyer. You must also buy owner title insurance to protect you.
Another misconception I have heard is people thinking title insurance is more important if you’re buying an older home. This is not true! New homes are possibly more prone to title defects. I’ll give you an example. It takes many craftsmen, laborers, architects, subcontractors, material men, and more, to build a new home. What guarantees do you have that the master builder of your home has satisfied all outstanding debts related to construction when you buy? The answer is, none. Almost anyone who did work on your new home has the ability to file a mechanic’s lien on the property up to three months after work is completed. The lien can then remain active up to one year. Without title insurance, you could be faced with legal and financial strife if any of these outstanding liens go to court for judgment.
5. Study Your Home Inspection Report
The main assumption here is that you of course have a home inspection done by a qualified professional. A good home inspection report will yield close to 15-20 pages worth of important information about the home you want to buy. It contains items of immediate and major concern and areas of minor concern throughout your home. Items of immediate or major concern may need to be addressed between the buyer and seller prior to closing. The remaining information in the inspection report is essentially your roadmap for areas to watch and improve within your home over time. I recommend you review/revisit your home inspection report once a year to help determine home improvement projects you want to budget for in the coming year.
