Consider payment type
Where home-seekers have the option of purchasing property with or without financing, the pros and cons of utilising either payment type should be carefully considered. Generally, purchasers who pay for homes without utilisng a loan avoid higher closing costs and are able to conclude sale-transactions in shorter intervals, while purchasers who seek mortgaging mainly benefit from greater liquidity. Your decision of either option would greatly affect both your cash flow and purchase-process.
Speaking with a mortgage officer
As most home-seekers usually require loans to finance purchasing a home, finding out how much you qualify to borrow becomes the foundation for your property-search. Knowing just how much you can afford to spend toward owning your new home narrows down your search and saves you from viewing homes that are beyond your reach financially.
Breaking the fear barrier
Too often we have all heard the remarks of someone “missed the opportunity of a lifetime” when referring to losing a ‘great deal’ on purchasing a home. Certainly, purchasing a home is one of the most expensive commitments some of us make in our lifetime, and undoubtedly the fear of making a hasty decision comes with the territory. However, purchasers need to control this fear. Fear can be helpful when it drives you to make certain that all things are properly done leading up to your purchase date, but fear can also become crippling when it prevents you from closing the deal on the home you truly want. Many purchasers who prolong purchasing after ensuring all conditions are met often lose that ‘great deal’ at the hands of a more secured purchaser.
If you have decided to purchase a home chances are you are not going to be purchasing your ‘dream house’. What you would actually be purchasing is someone else’s dream property or design, and certainly no two dreams are alike. With this in mind, before viewing any properties, home-seekers should identify aspects of a home that they would be willing to compromise on, and aspects they would not.
Looking into your home’s future
Unquestionably, part of dreaming-up your new home would be dreaming-up who you see living in your new home and how long you plan on living that dream. Purchasers are advised to consider whether the Home they are interested in would be suited for the size of their current family, the possibility of that family expanding, as well as if the home itself suits the lifestyle of the individuals. For instance, suitability for individuals who manage home-businesses, families that require additional areas for prayer-rooms/area, and couples that desire layouts appropriate for entertaining lager numbers of guests.
Looking at your Neighborhood
Many new homeowners discover life beyond the comfort of their front-yard only after having moved into their new home. This road to discovery might fascinate some, but others may quickly learn of terrifying truths about their property’s environs after it’s late to factor such truths into the decision of purchasing or not. While we freely admit that it is impossible to uncover everything about your prospective neighborhood, we encourage home-seekers to find out from local residents about Drainage, Public Transportation, nearby Schools, Police stations, Hospitals, Airports and even recreational facilitates such as shopping centers and restaurants. More than any other factor, your home’s immediate environment can affect your lifestyle; enhancing modest properties or turn dream properties into ‘living-disasters’.
All local governments set standard regulations in terms of property extensions and renovations. Home-seekers ought to inquire about any building restrictions the local government and/or property developer might have before purchasing. Instances where a home in a gated development is being considered, the terms of the lease agreement should be carefully examined as some terms may restrict particular activities, such as fence construction or ownership of dogs.
Verifying Ownership and Property
Although the task of confirming ownership and property may seem painfully obvious, we have witnessed individuals who have been the victims of fraud and deceit. Home-seekers are advised to hire the services of their own experienced Real Estate attorney to conduct such searches and draft ownership documentation known as a Deed of Conveyance. This ensures that the property you have viewed is indeed what you are actually purchasing and that the Vendor is the legal owner of the same property.
Getting a Property Valuation
Once a home is decided on, having a Property Valuation done on the home becomes mandatory for those purchasers applying for a mortgage. Financiers provide qualified clients with a list of trusted property valuators. When possible, we advise home-seekers to have a valuation completed prior to making a deposit on the property as financers only lend based on the valuated amount of the property and not on the sale price. Thus, if a payment is made before a valuation is done, Purchasers run the risk of having the property valuated lower than the selling price, of which the difference has to be accumulated by purchaser. When getting a valuation done prior to paying a deposit is not possible, purchasers should request a clause in the Sales Agreement to address the possibility of the valuation coming in at less than the actual selling price.