All Things Considered (hopefully) When Buying Your Home

You’re at the point in your life where you’re seriously considering purchasing your first home. You’re sick of paying high rental costs when you know that you’ll never own that property and it simply makes sense to start investing in your own future.

The first step is to speak with a licensed mortgage originator to discuss the payment amount with which you are most comfortable, what purchase price range that would be and what loan amount and purchase price you actually DO qualify for, as these two things - your comfort range vs. your qualification - can be entirely different and most times are. These things can be determined before a credit report is obtained but ultimately the loan officer has to have it in order to furnish a pre-approval on your home loan.

Buying a home is an exciting adventure, and whether this is your first home or your tenth, it’s important that you take your time when evaluating potential properties so that you end up with a property that truly reflects your style, your preferences, your lifestyle and of course, the size of your family.

When considering properties, you also need to think outside of just the property itself. While that Cape Code on the corner may look like your dream home, what about the neighborhood?

Are there homeowner association dues? Are property taxes reasonable? Are you responsible for water charges? Sewer charges? Recycling costs?

Are there any zoning regulations or restrictions that you should be aware of?

You should also consider your own personal lifestyle and make sure that the neighborhood is reflective of where you are in your life and what you are comfortable with.

For instance, perhaps you’re retired and looking to settle down in a quiet, mature neighborhood only to discover that the majority of families around you are all younger couples with small children.

It’s important to look at the big picture when choosing a property so that it truly offers you the setting and the atmosphere that you are most comfortable with. After all, this is your home and you are going to spend many years building a life there!

Driving by a property isn’t enough, and even if you love the layout, structure and design of a home, there are outside factors that should influence your decision to buy.

Some of these things may include:

• Choosing a neighborhood reflective of your own lifestyle.
• Choosing a neighborhood near the conveniences you need (schools, shopping, churches, etc.)
• Considering the layout of a home (open concept, 3 story, split plan, etc.)
• Considering the size of the property and whether there is room to expand.
• Choosing a property with adequate privacy.
• Choosing a property with a backyard, trees or fencing.
• Choosing a property that offers features most important to you (pool, fireplace, gourmet kitchen.)
• Whether the property needs improvements – for instance updating the kitchen and baths (and costs associated)
• Understanding zoning regulations, the housing market, additional costs.

There are other factors to consider outside of the property itself as well, so that you can purchase a home with limited risks involved, including:

• Finding the right real estate agent.
• Hiring a home inspection company.
• Financing opportunities, mortgages, and loans.
• How to put in your first offer.
• Setting a closing date that works for you and the seller.
• Understanding contracts, hiring a real estate attorney.
• Moving expenses, hiring a moving company
• Closing the deal and moving in!

There are many things to keep in mind when buying a home, and if it’s your first time purchasing a property, it can become overwhelming. Rest assured, that your real estate broker and attorney will take care of many of these things, but you want to take a “hands on” approach when evaluating properties and considering your options so that you can get the best deal possible.

One of the biggest mistakes that new home buyers make is rushing into a deal. They see a property that they absolutely love. It’s perfect! The size, privacy, layout – it’s everything they could hope for only to find out that the property needs repairs, or that the land taxes are higher than in a neighboring town.

So, it’s important that you keep an open mind when evaluating potential houses, and that you take your time! There are always other homes that could fit your lifestyle and personal preferences, so if you find one that has potential problems, move on!

Careful planning and thorough research will help you make the transition into your new home easier (and more affordable) than if you rush into an offer, or make a last minute decision on a property, so give yourself adequate time to visit properties before you even begin your search.

If you are currently renting and are considering giving notice to your landlord, make sure that you feel comfortable with the allocated time in finding a new home.

Depending on your area (and your lease), you may be required to give your landlord 60-90 days notice, so keep that in mind so that you don’t accrue additional expenses by having to pay for rent when you are no longer there.

When beginning your search for a home, you want to consider all options so that you can get the best deal possible. This includes:

New Homes vs. Older Homes

Older homes can be more affordable, however you may also be faced with costly repairs, such as replacing old equipment so that it’s up to code. Older homes often carry higher insurance rates because of an increased risk of repairs.

On the other hand, older homes can make for great starter houses, if you have the ability to do a lot of the repairs yourself. And in many cases, you can end up buying a larger house at a fraction of the cost in comparison with a newer home.

In addition, many people prefer mature properties because of the history surrounding the property, as well as existing vegetation, trees, and greenery, which provides privacy, while often giving buyers the opportunity to purchase more land for future development, than with a newer model.

But there are many pro’s and con’s to both a new and older home and it’s important that you fully understand everything about the properties that you are considering. Get as much history on the property as possible.

Ask the Realtor for information about the home, talk to neighbors and check out sale history by searching online.

Reviewing the history of sale transactions on a home can often give you a good idea as to whether there were problems with the property, especially if it’s been sold multiple times over a short period of time.

Also keep in mind that newer homes include a warranty, protecting you from unforeseen costs in repairs (such as roofing or flooring), while older homes will typically be sold “as is," so it's good to ask that the seller provide a warranty through a home warranty company for the first year, then it's up to you to renew it each year thereafter.

When purchasing an older home, you want to make sure that you pay an inspection company to thoroughly inspect the property, including roofing, heating, electrical outlets, and whether the property is up to code including the type of wiring found throughout the property.

While it’s important to have a home inspection on both new and older homes, if the property is aged, you will want to make sure the inspection includes elements that may not be typically included in an inspection process for a newer home.

Moving into your new home should be an exciting and memorable time in your life, and if you really give yourself enough time to evaluate different properties, and you keep an open mind with both newer and older homes, you’ll be in a better position to get the most ‘bang for your buck’ while ending up with a home that you are happy with for years to come.

I'd love to be a part of the team who helps make your home ownership dream come true so don't hesitate to contact me as your first step in the process! (803) 447-1224 or ebambas@gmail.com

Apply Online at www.sc-homeloan.com

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