Moving home is one of the most stressful things we do in our lives. It's one of the three most stressful things we put ourselves through. The others are getting married and getting divorced. You can't take the stress out of the other two events, but you can remove a lot of the trouble from buying a new house. Understanding the terminology, making sure all the paperwork is in order and that you understand each step, will make this less of a traumatic event.
You can buy a property without a real estate agent, but you will miss their invaluable advice. You won't pay a commission, but you might ignore important things like having a home inspection and doing a full walk-through before closing. You should also make sure you're with a lawyer you can trust. A good lawyer will suggest that the homeowners sign a disclosure form. If there are truly no problems with the place, they'll sign it. If they're hiding a faulty heating system, damaged appliances, or rodent problems, you'll be glad you got a signed disclosure.
Falling in love with the house you're seeing is a trap that's easy to fall into. That will blind you some issues. At first glance, the place might have everything you need including a big backyard, a great garage and tons of natural light. If the house is ticking all your boxes, sit back and evaluate it without the emotional attachment. Look at it from a financial position. Can you afford the repayments? What money do you have for repairs and what work does the house need? Looking at it as a financial commitment rather than a house will help you evaluate if this is your next home or a potential money-pit.
There's no pressure to buy. Don't allow anyone to make you feel pressurized. This is a massive financial commitment. Don't rush into anything. You might have a realtor who says that there's a lot of interest in the place. The realtor might suggest that you have to act now or risk losing the place. Consider what you'll be losing but not making a move. You won't be losing anything. There will always be other properties in that location. If you make a move and it's the wrong one, consider what you'll be committing yourself to. A home that might not be right for you just because the realtor added pressure to an already stressful situation.
The stress comes from the fact that you'll be piling a lot of your money into the house. The stress of moving home and making a life in a new area is underpinned by the stress caused by spending so much money. Don't make this purchase without knowing exactly what you can afford. You need to consider the mortgage amount, any taxes, and the cost of insurance. Don't take the amount offered to you by the bank. Only take out a mortgage you can afford to repay. Lenders will often allow you to borrow more than you can comfortably repay. Make sure you're the one making this decision.
You will want to make your new house a home for many years. That's only possible if you consider the future. Think about the expenses you'll have down the road including childcare and schooling. What about unexpected events like being laid off? You might not find work straight away. Make sure you're not so financially committed that there's no wiggle room for those unexpected events that will occur over the many years you'll be paying for the property.
To Consider Before Your Purchase
Do you need to move, or would you like to move? Always try and move when you’d like to rather than waiting until you need to move. That way you’re in control of the timing.
- Don’t set a deadline. This is a decision that should not be rushed so give yourself plenty of time.
- Get a personal referral for a real estate agent. That’s the best way of making sure you’re using someone who’s up to the task.
What Do They Say on Other Sites
“Here is something you should take into account when thinking about buying a house: Nearly all mortgage loans and lenders require some amount of cash as a down payment. The amount you've set aside for this will determine the kind of mortgage you qualify for. It will also impact how much you can afford to borrow for a home.” (@fr_25april_2019on Wallethub)
“You really don't need a broker but if you decide to go without one, you may miss out on the expertise that a professional realtor can bring to your situation. As in any profession, you have to determine where your strengths and weaknesses may lie." (Bob Maloney on Wallethub)
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