If you’re a new homebuyer, you can protect yourself by following these three tips.
- Know what you can afford: The cost of the house is only one cost in the overall transaction and homeownership. There are also closing costs, taxes, utilities, ongoing maintenance, insurance, and possibly even homeowners association fees that you need to factor into your budget. Once you have a clear picture of these costs, compare them to your monthly income to get the overall picture of what you can afford.
- Choose your lender wisely: Don’t make the mistake of choosing a lender based solely on the lowest rate. Their level of experience in the industry and how well you connect with them personally also matter. A good lender can make a custom mortgage solution based on your financial profile, so choose wisely. I always recommend talking to friends or family members who have done this before for a referral. You can also ask your local real estate advisor.
- Make sure not to overlook the details: We recommend whole house inspection contingencies and others in a real estate transaction. Be sure to look over the sales contract and don’t overlook the items in the ‘included’ or ‘excluded’ sections of it. That will help you ensure that you and the seller are on the same page in terms of what they intend to leave and what they intend to take. Additionally, things like zoning can go overlooked, which can be costly. Look up the zoning for your property so you understand it fully.
Even real estate consultants and attorneys can overlook things like reviewing the deed and any restrictions that apply to the property you’re buying, so be sure to review all these details. If you have any questions or you’re thinking of buying or selling a home here in the Central Pennsylvania market, give us call or send us an email soon. We look forward to helping you.