If you've been considering purchasing a property, now is a great time to do so. With low prices, favorable interest rates, and a wide selection of homes on the market, it's an ideal time to make your real estate dreams a reality. However, the home buying process can be confusing and overwhelming, especially with a flooded market. In this article, we will provide some helpful tips to guide you towards purchasing the home of your dreams.
Test for Radon and Carbon Monoxide
When purchasing a home, it's important to not only test for carbon monoxide, but also for radon. Radon is a radioactive gas that can cause lung cancer, and it's important to have a radon inspection done before finalizing the purchase. If the levels are above 4, the seller should install a radon mitigation system. As the buyer, you can also make this a condition of your purchase. It's important to address this issue before moving into your new home.
Calculate Your Housing Expense-to-Income Ratio
Before you start house hunting, it's important to determine how much you can afford to pay for a mortgage. Mortgage lenders use a housing expense-to-income ratio to calculate this, taking into account property tax payments, principle and interest on the loan, and insurance premiums. This will help you determine a realistic budget for your home purchase.
Tour Multiple Properties
When looking for a home, it's important to tour multiple properties before making a decision. Keep track of the features you like and dislike about each one, and consider developing a rating system to help narrow down your options. This will help you make a more informed decision when it comes time to choose your dream home.
Look for Potential Problems
Before finalizing a home purchase, thoroughly inspect the property for any potential problems. It's important to have the seller address as many of these issues as possible before you move in. This will save you time and money in the long run, especially if you plan on flipping the house.
Do Your Research on the Neighborhood
If you come across a home with a seemingly too-good-to-be-true price, it's important to do your research on the neighborhood. Have your realtor look into the safety and livability of the area, and consider hiring a professional inspector to thoroughly examine the property. This will help you avoid investing in a potential money pit.
Determine Your Mortgage Budget
While your mortgage lender will tell you how much you can borrow based on your income and credit score, it's important to determine your own mortgage budget. Consider your monthly income and expenses, and don't plan on your mortgage payment (including fees and insurance) to be more than 30% of your monthly income.
Hire a Professional Home Inspector
Before finalizing your offer on a home, it's crucial to hire a professional home inspector to conduct a thorough inspection of the property. This will help you avoid any costly mistakes and ensure that you are making a sound investment. Plan to be present during the inspection and make a list of any questions or concerns you have for the inspector.
Buying a home is an exciting and rewarding experience, especially in the current real estate market. However, it's important to be informed and prepared when making such a significant purchase. By following these tips, you