Factors to Consider When Buying a Home
A choice often has to be made between buying and renting property.
To help you make an informed decision, you need to determine the time you seek to stay in that area and the monthly financial obligations you can afford.
If you are planning to live in a particular area for more than 5 years, it makes a lot of sense to buy a home.
On the other hand, if your job requires you to move regularly, renting a home can be in your best interest.
The costs associated with owning a home are often higher than renting, particularly in the short-term, because of the cost of yard work, privacy, upkeep & maintenance and insurance.
The factors to consider when buying a home include: · Short sale Find out whether the lender will accept a short sale, where the property can be sold for less of the outstanding home mortgage.
If the seller's bank fails to give consent, it means the short sale cannot happen.
Nonetheless, some sellers choose to list real estate as "short sale" without consulting with their lenders.
If a price is determined without seeking the permission of the bank, there will not be a deal.
Therefore, anytime you locate a property advertised as "short sale", find out whether the bank has agreed to have the property sold for less and ask to see any communications with the lender.
· Insurance Homes that have been constructed in flood plains require flood insurance covers that affect the cost of the house.
Therefore, it is advisable to find out from the property agent whether the home is built in a flood plain.
Furthermore, double check with the relevant local authorities to confirm its location.
Find out the insurance ratings for the property because a high rating indicates a high risk.
Knowing the applicable insurance will help you weigh the options and determine whether you can afford to pay any additional costs associated with insurance.
· Documents for mechanical systems/appliances It is advisable to obtain documentation and receipts for the home's mechanical systems and appliances.
However, some owners replace systems before placing the property on the market and fail to keep the paperwork.
Without proper documentation, you may not have adequate background information about when the system malfunctioned, the seller and any warranty.
· Foreclosures for sale Find out whether there are any foreclosures available for sale nearby.
Foreclosures often cost less, which is a factor you may wish to factor in when buying real estate.
With foreclosures in the area, you can expect lots of competition and the benefit of getting better deals.
To help you make an informed decision, you need to determine the time you seek to stay in that area and the monthly financial obligations you can afford.
If you are planning to live in a particular area for more than 5 years, it makes a lot of sense to buy a home.
On the other hand, if your job requires you to move regularly, renting a home can be in your best interest.
The costs associated with owning a home are often higher than renting, particularly in the short-term, because of the cost of yard work, privacy, upkeep & maintenance and insurance.
The factors to consider when buying a home include: · Short sale Find out whether the lender will accept a short sale, where the property can be sold for less of the outstanding home mortgage.
If the seller's bank fails to give consent, it means the short sale cannot happen.
Nonetheless, some sellers choose to list real estate as "short sale" without consulting with their lenders.
If a price is determined without seeking the permission of the bank, there will not be a deal.
Therefore, anytime you locate a property advertised as "short sale", find out whether the bank has agreed to have the property sold for less and ask to see any communications with the lender.
· Insurance Homes that have been constructed in flood plains require flood insurance covers that affect the cost of the house.
Therefore, it is advisable to find out from the property agent whether the home is built in a flood plain.
Furthermore, double check with the relevant local authorities to confirm its location.
Find out the insurance ratings for the property because a high rating indicates a high risk.
Knowing the applicable insurance will help you weigh the options and determine whether you can afford to pay any additional costs associated with insurance.
· Documents for mechanical systems/appliances It is advisable to obtain documentation and receipts for the home's mechanical systems and appliances.
However, some owners replace systems before placing the property on the market and fail to keep the paperwork.
Without proper documentation, you may not have adequate background information about when the system malfunctioned, the seller and any warranty.
· Foreclosures for sale Find out whether there are any foreclosures available for sale nearby.
Foreclosures often cost less, which is a factor you may wish to factor in when buying real estate.
With foreclosures in the area, you can expect lots of competition and the benefit of getting better deals.
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