Avoiding Unpleasant Surprises: 10 Things to Double-Check Before Buying Real Estate

Buying a home is an exciting chapter in people’s lives, and can mean many things based on the buyer. For one buyer, it may mean settling down into a community and starting a family. For another, it may mean finally having the financial security to afford a home. No matter the reason for buying, it’s important to double-check that these ten things have happened before closing.

Has an Inspection Been Done?

A home inspection is when an independent inspector comes to a home and checks for major health, safety, or mechanical issues. This occurs after the buyer has made an offer on a property but before closing. Buyers should begin negotiating after inspection, taking into account repairs that need to be made. Except in rare cases, buyers should never go through with a home sale before having an inspection done.

Did You Do an Inspection?

When looking at a home, tune out the staged furniture, the fresh paint, and the decorative touches. Instead, look for things that don’t seem right. Turn on all the lights and run all the faucets. Open and shut every door, look under the sinks, and plug something into the outlets to see if they work. Buyers don’t have to know a lot about home maintenance to recognize when something is off. Doing this will give you an idea of what the home inspection might turn up. You may even catch things that don’t make it into the report.

Did You Remember a Pest Inspection?

A pest inspection is separate from a home inspection and involves having a professional come to the home and check for termites, carpenter ants, and other pests that can cause home damage. A small, recent infestation can be taken care of and doesn’t have to mean backing out of the sale. But a larger, chronic infestation may have caused more damage than a buyer will deal with. If the pest inspector finds damage, buyers should decide if the level of damage is a deal-breaker. If you still want to proceed, ask that the seller pay for pest removal and associated damage as a condition of closing.

Are You Using a Realtor?

Homebuyers may hesitate to hire a Realtor, as there’s an idea out there that Realtors drive up the overall price of a home. That may or may not be true, but a good Realtor will protect the interests of the buyer. When looking for a Realtor, ask people you know for recommendations, ask Realtors for referrals, or check online review websites. Find one with an excellent reputation and keep in mind that a listing agent should never represent both the buyer and the seller. Even the most trustworthy agent can’t properly protect the interests of both the seller and the buyer.

Did You Consider all the Costs?

According to Forbes, it’s important not to fixate on the purchase price, because that price isn’t the bottom line for owning a home. Aside from mortgage payments, you’ll also have to pay for home insurance, real estate taxes, and upkeep. Depending on where the home is located, you may even have to pay for things like homeowner association fees. Add up all these extra costs and add them to the monthly mortgage. Is that figure something your budget can handle?

Have You Talked With Multiple Mortgage Lenders?

Most homebuyers need a mortgage lender to finance their home purchase, and that means shopping around. Don’t go with the first lender you talk to unless you’ve talked to others and know that the first lender has the best interest rate. Choosing a lender should look just like shopping for a house: look at multiple options, ask lots of questions, and choose one that meets your current and future needs.

Have You Over Borrowed According to Your Budget?

Mortgage lenders are often willing to lend homebuyers way more than they know they can afford, especially if they have great credit. Look at homes your budget says you can afford, rather than what a lender says you can afford. To do this, you must create a personal budget, if you don’t already use one. If your budget says you can only afford to spend $1,500 each month on housing, including the extra costs mentioned above, then tell your lender and ask for a loan limit that matches.

Have You Asked Yourself What Your Home Needs Will Look Like Down the Road?

If you haven’t already done so, take an hour to sit down and ask yourself what your wants and needs are in a home. Do this before making an offer on a home, and definitely before closing. HGTV suggests taking a five-year view. Are the people who will live in the house now still be the people living there in five years? Will children come into the picture? Will children leave the picture headed for college? Many buyers have fallen in love with a house, purchased it, and then realized just a few years later that, while their home is amazing, it doesn’t meet their needs anymore.

Is Buying Now the Right Decision for You?

Closing isn’t the ideal time to ask yourself this question, but it’s better than asking it after it’s too late. There are a lot of unwritten rules out there about milestones in life, including what age you should purchase a house by. Ignore those rules and ask yourself if this is the right time for you. You can afford a mortgage, and you have a steady job you love, but being ready to buy isn’t just about money. Before closing, or even before making an offer, take 24 hours to make sure this big decision is one that’s right for you.

Do You Have Lingering Questions?

By the time you’re ready to close on a home, every single question you’ve ever thought should have an answer. If there are lingering questions, don’t ignore them. Those questions, no matter what they are, may have answers that end up being a deal breaker for you. So don’t feel silly asking if the neighbor’s dog barks a lot or has a bad habit of wandering. Don’t hesitate to ask if the church bells down the street are annoying. You’re the one making a long-term commitment, so don’t leave questions unanswered.

Purchasing a home is one of the biggest financial decisions most people will ever make. Every step should be well thought out, and every care should be taken to do it the right way. By double-checking these ten things, homebuyers can move into