Get A Home Inspection
I would never purchase a home without getting a home inspection first. There may be underlying issues that you are unaware of, and getting a home inspection before purchasing your first home or any home can save you from getting stuck in a home with unexpected issues.
A home inspector can discover:
- Mold
- Plumbing leaks or issues
- Electrical problems
- Roof damage
- Foundation issues
- Asbestos & more
For example, my home inspector advised us that the vapor barrier beneath the house needed to be replaced. This informed me of an unexpected issue and prepared me for the expense so I could calculate whether I could afford to fix it or not.
If there are issues you want to be addressed, you can request the seller to fix them before closing or deduct the cost from the purchase price. Not everyone will agree to this, but it doesn’t hurt to try to save money from unexpected costs.Â
Negotiate The Home Price
Timing significantly affects home prices. At any given time, we can experience a buyer’s market or a seller’s market.
- A seller’s market: When there are more buyers than homes, this creates a shortage that raises home prices and gives sellers more negotiating power.
- A buyer’s market: When there are a lot of sellers, but not a lot of buyers and home prices drop, you, the buyer, have more power to negotiate the price.
During a buyer’s market, it’s acceptable to make a low offer on a home, even if your real estate agent is hesitant. Remember, agents get paid more commission when you buy at higher prices, so it’s natural for them to resist submitting super-low offers.
During a seller’s market, you should still negotiate the price of your home, although you won’t have as much maneuvering power as you would during a buyer’s market.
But regardless of what phase the housing market is in, you should try and negotiate yourself a 7-day contingency period. This allows you allows you to inspect the home and back out of the deal, for any reason, without any recourse.
Close The Deal
Now that all the steps to buying a house are done, you’re ready to close on your mortgage!Â
Before closing, you will receive a closing disclosure from your lender. Be sure to review this thoroughly to ensure the loan’s final terms match what you applied for. Checking the interest rate, closing costs, and terms can prevent issues when you go to the formal loan closing to sign the paperwork for your mortgage loan and become the official owner of your new home.Â
At your mortgage closing, you will sign quite a bit of paperwork that includes the promissory note, a deed of trust, and closing disclosure.
The promissory note is the legal agreement to pay your lender, a deed of trust puts a lien on your property to hold as collateral for your mortgage loan, and a closing disclosure is a list of the final credits and charges on the contract.