Buying a home is an exciting milestone in your life. It symbolizes stability, security and the ability to create a home that reflects your personality and taste. But like any big financial decision, it can be overwhelming, especially if you're a first-time home buyer. That's why we're here to guide you through buying real estate in Indiana, from saving for a down payment to closing the deal.
Indiana is a great place to buy a home, and Indianapolis is the most popular place to build a home in the state. The housing market is affordable and the state has a low cost of living compared to other Midwestern states. Whether you're looking for a suburban home with a big yard or a downtown condo with a view, Indiana has something for everyone. But before you start looking at properties, there are a few things you need to do to prepare for buying a home. In this article, we'll walk you through the steps you need to take to buy a home in Indiana.
Save on down payment and closing costs
You'll have to roll up your sleeves and start saving for a down payment and closing costs now, but the rewards of owning your own home will pay off in the end. The first step is to set a budget and stick to it. Look for areas where you can cut costs, such as dining out or subscription services. Savings strategies such as setting up automatic transfers to a savings account or using a cash-back credit card can also help increase your savings.
When it comes to down payment options, consider government-backed loans, such as VA and FHA loans, that require little or no down payment. Conventional loans also offer lower down payment options, but be aware that you may need to pay private mortgage insurance until your loan balance reaches 80% of the purchase price. You should also factor in closing costs of about 1% to 3% of the home's purchase price. Research financial aid programs that may be available to you, such as cash advances or grants.
Before investing, it is important to research real estate value trends in the desired area. Indiana has a stable real estate market, and home values have been steadily increasing in recent years. The benefits of home ownership include tax deductions and the potential for capital growth. Don't be afraid to negotiate with your lender or seller to get the best possible deal. And remember, saving for a down payment and closing costs may seem daunting, but the investment potential of home ownership can pay off in the long run.
Decide what you need and what you want
Deciding on your needs and wants is key when looking for a new home because it allows you to prioritize what's important to you. When considering your needs versus wants, keep your budgeting tips and lifestyle factors in mind. Here are some items to consider:
- Size requirements: Consider the number of bedrooms and bathrooms required for your family. Are you planning to expand your family in the future?
– Location considerations: Do you need to be close to work, school or public transport? What about access to major highways or airports?
– Prioritize features: What features are must-haves versus nice-to-haves? For example, if you like to cook, a modern kitchen may be essential.
It is also important to consider your personal preferences and future needs. While some features may not be necessary now, they may be important for resale value or personal enjoyment in the future. When considering your needs, consider nearby amenities such as parks, restaurants and shops. Keep in mind that your lifestyle may change over time, so it's important to choose a home that can accommodate these changes.
Finally, remember that deciding on your needs and wants is only the first step in the home buying process. It is important to work with a knowledgeable and reliable real estate agent who can help you find a property that meets your criteria and fits your budget. By taking the time to prioritize your needs and wants, you can ensure that you find a home that you will enjoy for years to come.
Check your credit score
Checking your creditworthiness is crucial when preparing to apply for a mortgage as it determines eligibility and interest rates for different types of loans. Before you start looking for your dream home in Indiana, take the time to check your credit score and credit report. This will give you an idea of where you stand financially and whether you need to take steps to improve your credit score.
Improving your credit may take time and effort, but it pays off in the long run. Start by creating a budget plan that will help you reduce debt and increase your credit utilization ratio. Credit monitoring services can also help you monitor your credit score and report suspicious activity that may indicate identity theft. If you need additional help, consider credit counseling services or dispute any errors on your credit report.
Once you have a better understanding of your credit score and have taken steps to improve it, you can start exploring your loan options. Different types of loans have different credit requirements, so make sure you're applying for a loan that you qualify for. With a little preparation and effort, you can increase your chances of getting approved for a mortgage and buying your dream home in Indiana.
Find a great real estate agent in Indiana
Looking for a top Realtor in the Hoosier State? Let's take a look at how to find the perfect partner for your shopping journey. There are several qualities to consider when choosing a broker. First, you want a real estate agent who has experience in the neighborhoods you are interested in and who has completed a large number of transactions in the past year. In addition, it is important to research brokerage firms and check agent ratings and credentials.
Once you have a list of potential agents, meeting them in person is key. During the call, discuss your budget and search criteria. Be sure to discuss with your real estate agent the type of property you are interested in, as well as the location and price range. It is also important to understand the agent's role in the buying process and the importance of communication. You should feel comfortable asking questions and discussing your concerns with your agent.
Regarding commissions, negotiation with your broker is possible. Be sure to discuss this upfront and understand how much you are paying for their services. Finally, consider the benefits of working with a local agent who knows the market well and can provide valuable insights. By choosing the right real estate agent, you can have a smooth and successful home purchase.
Calculate how much you can pay for the house
Are you ready to take control of your finances and create a budget for your dream home? It's time to calculate how much you can comfortably pay for your monthly housing allowance. To do this, there are some budgeting tips you can follow to ensure you factor in all of your living expenses.
First, use an affordability calculator to determine what you can afford based on your income, expenses, and debt-to-income ratio. This tool will give you an estimate of how much house you can afford and what your monthly payment will be. Second, consider your savings strategies and payment options. A larger down payment can lower your monthly payment and interest rates on your mortgage. Third, research mortgage rates and loan qualifications to find the best option for you and your financial planning.
Keep in mind that there are several affordability factors to consider when calculating your budget. Property taxes, home insurance and private mortgage insurance can contribute to your monthly payment. It is important to consider all these costs to avoid any surprises in the future. By following these budgeting tips and taking all housing costs into account, you can confidently determine how much you can afford for a home and find the perfect home for you and your family.
Determine which type of mortgage is right for you
It's time to find out what type of mortgage best suits your financial situation and home ownership goals. One option to consider is a fixed rate mortgage, which has a fixed interest rate throughout the life of the loan. This can give you peace of mind knowing that your monthly payment will not change. Another option is variable rate mortgages, which have a lower initial interest rate that can change over time. This can be a good option if you plan to sell or refinance before the rate adjusts.
If you have a lower credit score or less money for a down payment, FHA and VA loans are worth considering. FHA loans have lower creditworthiness and only require a 3.5% down payment, but they come with mortgage insurance premiums that can be expensive. VA loans, on the other hand, offer 0% down payment and do not have private mortgage insurance, but they do have a financing fee that can be included in the loan.
If you're looking for a more expensive home, you might want to consider taking out big loans. These are loans that exceed the harmonized loan limit set by Fannie Mae and Freddie Mac. Jumbo loans tend to have higher interest rates and may require a larger down payment. It's also important to consider whether you qualify for down payment programs or whether prepaying your mortgage can lower your interest rate. Be sure to weigh all your options and talk to your mortgage lender to determine what's best for you.
Get pre-approved for a mortgage
Before you start looking for your dream home, make sure you get a mortgage in advance so you know exactly how much you can afford and what type of loan you qualify for. This will save you time and heartbreak like Sarah, who fell in love with a house only to find out later that it was out of her price range. To get pre-approved, you need to gather some documents such as proof of income, employment history and credit report. Be sure to ask your mortgage lender about interest rates, loan options, income requirements, debt-to-income ratio and mortgage insurance.
Getting pre-approved for a mortgage just got easier with the online pre-approval process. You can submit your application and required documents online and the lender will review them to determine if you qualify for the loan. This procedure is especially useful for first-time homebuyers who may have questions about the mortgage requalification procedure. Your mortgage lender can provide you with a list of refinancing options if you already own a home but want to explore new mortgage options.
Once pre-approved, you can start looking for properties in your price range and make an offer with confidence. Remember that a pre-approval letter does not guarantee that you will get a loan, but it does give you an advantage over other buyers who do not have a pre-approval. So take the time to get pre-approved and start your journey home on the right foot.
Choose the right place
Choosing the ideal location is crucial when buying a home in Indiana because it can have a big impact on your quality of life. Consider the pros and cons of each neighborhood and city you're interested in to find the right location. See school districts, crime rates and amenities offered in the area. You'll also want to consider your commute times and any future events in the area that could affect the property's value.
When researching neighborhoods, also consider neighborhood culture and climate factors. Some areas may have a close-knit community feel, while others are more geared toward young professionals. Climatic factors such as tornadoes or extreme snowfall can also influence your decision. In addition, access to healthcare is important, especially if you have pre-existing conditions or want to be close to a hospital.
Ultimately, choosing the right place for your new home in Indiana depends on your personal preferences and lifestyle. Take the time to explore different neighborhoods and cities to find one that suits your needs. Don't rush into a decision based solely on property value, as a good location can have a greater impact on your overall happiness and well-being.
Start your Indiana home search
It's time to start your search for the perfect home in Indiana! When starting your home search, it's important to keep in mind Indiana's popular neighborhoods, as well as your time frame for buying a home and working on a budget. To begin, prioritize your must-haves and use them as a guide for your search.
Here are some tips to get you started:
– Find open houses: Visit open houses in neighborhoods you're interested in to get a feel for the area and available homes.
- Research Schools: If schools are important to you, research school districts in the areas you are considering.
- Dealing with multiple offers: Be prepared to act quickly and make the best offer if you are in a competitive market.
- Negotiate closing costs: Don't be afraid to negotiate closing costs with the seller to keep your budget under control.
- Understanding Property Taxes: Research property taxes in the areas you are considering to avoid surprises later.
- Consider trade-in value: Keep trade-in value in mind as you search for your home. You want to make sure you're investing wisely.
- Hire a home inspector: Once you've found a home you're interested in, hire a professional home inspector to make sure there are no hidden problems that could cost you dearly.
By keeping these tips in mind and working with your real estate agent, you'll be well on your way to finding your dream home in Indiana. Good luck!
Make an offer
As you search for your perfect home, it's important to know how to make an offer that will stand out and attract a homeowner, giving you the best chance of securing the property. Your real estate agent can help you with market analysis and comparative analysis to determine the fair market value of the property. With this information, you can make a competitive offer that is neither too low nor too high.
After you make an offer, the homeowner can respond with a counteroffer. This is where negotiation tactics come into play. Your agent can help you navigate this process and come to an agreement that works for both parties. Be prepared for unscheduled inspections and secure serious cash to show the seller that you are serious about buying their home. You can also include an escalation clause in your offer, which automatically raises your offer if another buyer makes a higher offer.
When you and the seller agree on all the terms, it's time to sign the sales contract. This document describes closing timelines, vendor concessions, and all other details related to the purchase. It is important to read this contract carefully and ask all questions before signing. With these steps in mind, you can make an offer on your dream home in Indiana with confidence.
Inspections and assessments
Before officially buying a home, it is important to have inspections and appraisals done, which gives peace of mind and the ability to renegotiate terms if necessary. Hiring a professional to conduct a thorough property inspection can help uncover common problems such as problems with the roof, foundation, electrical system, HVAC system, plumbing and septic system. It is important to have a list of items to review so that nothing is overlooked.
In addition to a general home inspection, it is advisable to perform specialized inspections to uncover any hidden problems that may not be revealed on the property disclosure form. Radon testing is important in Indiana because radon levels can be high in certain areas. A termite and pest inspection can also help identify pest damage that may not be immediately apparent. If problems are discovered during the inspection, you may be able to negotiate with the seller for repairs or include a contingency fee in your contract.
The appraisal process is also important when buying a home with a mortgage. The appraiser will determine the value of the property, which will determine how much the lender is willing to lend you. It is important to ensure that the appraiser is qualified and experienced and takes into account all the unique characteristics of the property. If the appraisal is lower than expected, you may have to renegotiate the terms of your contract or even end the sale. If you have an inspection contingency in your contract, you can stop the sale if significant problems are discovered during the inspection process.
Arranging repairs and loans
Are you ready to close the contract on your dream home? Don't let unexpected breakdowns catch you off guard - negotiate repairs and loans like a pro. As an Indiana home buyer, you have the right to request repairs or credits for certain defects that may affect the value, safety or longevity of the property. Consider the following tactics for successfully negotiating repairs and loans:
– Read the inspection report carefully and identify the main defects that require immediate attention. Get repair estimates from licensed contractors to get a clear idea of the cost and scope of repairs.
– Carefully evaluate the seller's counter offers and concessions. If the seller doesn't want to make the repairs, you can claim a repair credit that can be deducted from the sale price or closing costs.
– Consider purchasing a home warranty to cover major systems and appliances in the event of future breakdowns or repairs. This can give you peace of mind and protect you from unexpected expenses.
To make sure the repairs are done right, get referrals from trusted contractors or your real estate agent. You can also choose to do some DIY repairs if you have the skills and tools, but make sure you get the proper permits and inspections if necessary. Ultimately, the goal of negotiating repairs and loans is to ensure that you make a fair and informed decision based on the condition of the property. With the right approach and preparation, you can successfully complete this process and enjoy your new home in Indiana.
Secure your financing
Just a little more and you've arrived! Now is the time to secure your financing and make your home ownership dreams come true. The first step is to research lenders and consider mortgage interest deductions. You want to find a lender that not only offers competitive rates, but also has a good reputation for customer service and reliability. Once you've found a few potential lenders, it's time to research borrowing costs and understand your loan options.
Before applying for a loan, assess your debt-to-income ratio. Lenders typically look for a ratio of 43% or less. If your ratio is higher, you may want to pay off some debt or consider a cheaper home. When you feel financially ready, gather your financial documents and contact lenders to get pre-qualified or pre-approved. Prequalification is a simple process that gives you an estimate of how much you can borrow, while prequalification is more detailed and requires a credit check.
Once you're pre-approved, it's time to start looking for the best mortgage. Consider interest, closing costs and the term of the loan. Understand mortgage insurance and how it affects your monthly payments. Finally, determine the loan repayment term. A 30-year mortgage is the most common, but a 15- or 20-year mortgage may suit your financial situation better. Remember that securing your financing is a critical step in the home buying process, so take your time and make an informed decision.
Make one final run
Now that you've secured your financing, it's time to finally go through the Indiana home buying process. This is a key step in the home buying process as you can be sure that the property is in the same condition as when you first viewed it and that all agreed upon repairs have been carried out.
During your final inspection, you should look for any new damage or problems that may have occurred since your last visit. Common problems to watch out for are leaks, mold and pests. Additionally, make sure the seller has left all household items and personal property, such as appliances, and has not left any trash or unwanted items on the property.
Preparation for passing is important. Be sure to bring a checklist that you must follow and all documentation of agreed repairs. Don't panic if you run into problems during the walkthrough. Instead, talk to your broker about how to handle this situation. In many cases, the seller will be willing to make the necessary repairs or offer a credit to cover the cost. Remember, a thorough final check is essential to ensure a successful shopping experience.
Close your new home!
As you prepare to close on your new home, it's important to be aware of the various documents and closing costs you'll encounter so you can confidently sign and settle into your dream home. The closing process typically involves reviewing and signing several documents, including the final loan application, mortgage promissory note, contract and disclosure statement. You must also pay closing costs, which can be divided into four categories: property and security costs, lender costs, prepaid costs, and other closing costs.
To protect your investment, purchase property insurance and home insurance before you close on your new home. Property taxes and homeowner association fees may also be included in your closing costs, depending on the terms of your sales contract. Consider purchasing a home warranty to cover unexpected repair and maintenance costs after you move in.
As you prepare to move into your new home, you'll need to create a moving checklist and set up utilities, such as electricity, gas and internet. You may also consider installing a home security system to protect your property and family. Finally, schedule regular home maintenance to keep your property in top condition and avoid expensive repairs in the future. With these steps, you can close on your new home worry-free and enjoy your investment for years to come.
Frequently asked questions
What are the real estate tax rates in Indiana?
Evaluating affordability is an important first step when considering buying a home in Indiana. Property tax rates vary by county, with some areas having higher rates than others. By comparing counties, you can find the best option for your budget. Understanding exemptions, such as the homestead exemption, can also lower your tax bill. The impact of home value on property taxes should also be considered, as more expensive homes will have higher tax rates. When it comes to tax payment options, Indiana allows for both annual and bi-annual payments. Historical rates and future forecasts can provide insight into possible changes to your tax bill. Real estate sales tax and the appeals process are also important to understand. For those interested in investing in tax laws, Indiana has a robust system. In general, understanding property tax rates is critical for any Indiana homeowner.
How do I know if a neighborhood is safe and suitable for a family?
When looking for a safe, family-friendly neighborhood, there are several important factors to consider. School assessment should be one of your top priorities, as well as crime statistics in the area. It's also important to look for nearby playgrounds, as well as community events that bring families together. A walkability rating should be taken into account, as should access to public transport. It's also a good idea to check out nearby hospitals and family businesses. Finally, be sure to evaluate the quality of the parks in the area and the availability of kindergartens. By considering all of these factors, you can ensure that you find a neighborhood that is not only safe, but also enjoyable for families.
What is the average time it takes to close on a home in Indiana?
Closing on a home in Indiana can take anywhere from 30 to 60 days, depending on several factors that affect the process. Factors that can affect closing time include title searches, appraisals and inspections, and negotiating a closing date. Common delays can include financing issues, property disputes, or legal complications. Both the seller and the buyer have obligations during this period, with the seller providing the necessary documents and information and the buyer getting pre-approved for the loan. It is also essential to understand the breakdown of closing costs, including fees such as title insurance, appraisal fees and attorney fees. After closing, there are post-closing responsibilities such as transferring utilities and updating insurance policies. To ensure a smooth closing process, it is critical to work with a knowledgeable and reliable broker who can guide you through every step of the process.
Are there any state laws or regulations I should be aware of when buying a home in Indiana?
Congratulations on your decision to buy a home in Indiana! As you dive into the process, you may be surprised by state-specific laws and regulations that you should be aware of. Broker requirements, disclosure laws and home warranty options are just some of the things to consider before making an offer. In addition, zoning laws, title insurance policies, mortgage lending policies and the property appraisal process are important factors that affect your purchase. Remember to also consider any environmental issues or floodplains as well as HOA regulations that may affect your future home. Although it can be frustrating, keep in mind that following these regulations will ensure a smooth and successful buying process.
How do I choose a reputable home inspector in Indiana?
To choose a reputable home inspector in Indiana, start with your research. Search for the best home inspectors in your area and check their references. Ask about their checklist and what it includes. Request price quotes and read online reviews from previous customers. You can also ask friends, family or your broker for referrals. After selecting an inspector, schedule an inspection of the purchase. During the inspection process, the inspector will thoroughly inspect the property and identify any hidden problems in the home. At the end of the inspection, you will receive an inspection report with a description of the problems found. A reputable home inspector will provide you with the information you need to make an informed home buying decision.
What are the 3 most important things when buying a house? ›
They say the three most important things to think about when buying a home are location, location, location. You can change almost everything else, but you can't change your home's location.
- Get your finances in order. ...
- Get the ball rolling for a mortgage. ...
- Choose your team of pros. ...
- Find your new home. ...
- Make an offer. ...
- Go to closing.
It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments.What is the first step if you want to buy a house? ›
The steps to buying a house can make for a long overall process. First, you'll need to be ready to be a homeowner and set a budget. Next, you'll work with a lender to get preapproved for a mortgage. Then, you'll start shopping for properties, ideally with a trusted estate agent at your side.What are the three C's of home buying? ›
They evaluate credit and payment history, income and assets available for a down payment and categorize their findings as the Three C's: Capacity, Credit and Collateral.What are 3 of the 6 things you need to buy a house? ›
The process can differ among lenders but in every case, there are six boxes to check off when applying for a home loan: Get your down payment together; pick a lender, check your credit score, check your debt-to-income ratio, set aside closing costs, and apply for pre-approval of a mortgage.What credit score is needed for a 300k house? ›
A conventional loan requires a credit score of at least 620, but it's ideal to have a score of 740 or above, which could allow you to make a lower down payment, get a more attractive interest rate and save on private mortgage insurance.How much of a loan can I get with a 650 credit score? ›
You can borrow as much as $40,000 - $100,000+ with a 650 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.How much can you borrow with a 700 credit score? ›
The average credit limit for those with a 700 credit score is right around $4,500. However, if you were to pull out a 700 credit score personal loan, you should be able to access more money than you would with just a credit card.How much money should I have to buy a house for the first time? ›
If you're getting a mortgage, a smart way to buy a house is to save up at least 25% of its sale price in cash to cover a down payment, closing costs and moving fees. So, if you buy a home for $250,000, you might pay more than $60,000 to cover all of the different buying expenses.
How much is a downpayment on a 500k house? ›
For a $500,000 home, a 20% down payment would be $100,000. At a 5.5% rate, the monthly payment for this would be $2,940 (this includes taxes and insurance - scroll down to see how much local taxes can impact your monthly payment and may alter this number for you).How am I supposed to afford a house? ›
Stick to the 28/36 Rule
No matter how you finance your home purchase, most experts agree that people should not spend more than 28% of their gross income on housing expenses, and no more than 36% on debt. For example, if you earn $5,000 each month, your ideal mortgage payment should be no more than $1,400 per month.
What Is the 28/36 Rule? The 28/36 rule refers to a common-sense approach used to calculate the amount of debt an individual or household should assume. A household should spend a maximum of 28% of its gross monthly income on total housing expenses according to this rule, and no more than 36% on total debt service.What is the 30 house rule? ›
You may have heard it—the old rule that says, “Homeowners shouldn't spend more than 30% of their gross monthly income on housing.” The idea is to ensure they still have 70% of their income to spend on other expenses. The intent is good. But is it realistic today? That depends on your financial situation.What is the triple 30 rule? ›
You should be spending no more than 30% of your gross income on a monthly mortgage payment, have at least 30% of the home's value saved up in cash or semi-liquid assets, and buy a home valued at no more than three times your annual household gross income.What are the most valuable things in a house? ›
- (1) Furniture. ...
- (2) Clothes and accessories. ...
- (3) Jewellery and valuables. ...
- (4) Carpets and furnishings. ...
- (5) Electrical items and computers. ...
- (6) Sports and music equipment. ...
- (7) Garden furniture and items. ...
- (8) Collections.
The adage "location, location, location" is still king and continues to be the most important factor for profitability in real estate investing. Proximity to amenities, green space, scenic views, and the neighborhood's status factor prominently into residential property valuations.
- → 1. Qualifying Credit.
- → 2. Proof of Income and Finances.
- → 3. Cash Needed to Close On Your Home.
- → 4. Home Buying Budget.
- → 5. Mortgage Loan.
- → 6. Mortgage Pre-Approval.
- → 7. Real Estate Agent.
- → Final Thoughts.
You will likely need a credit score of 660 or higher for a $20,000 personal loan. Most lenders that offer personal loans of $20,000 or more require fair credit or better for approval, along with enough income to afford the monthly payments.Can I get a 50K loan with a 650 credit score? ›
For a loan of 50K, lenders usually want the borrower to have a minimum credit score of 650 but will sometimes consider a credit score of 600 or a bit lower. For a loan of 50K or more, a poor credit score is anything below 600 and you might find it difficult to get an unsecured personal loan.
Can I get a 20k loan with 750 credit score? ›
You should have a 640 or higher credit score in order to qualify for a $20,000 personal loan. If you have bad or fair credit you may not qualify for the lowest rates. However, in order to rebuild your credit you may have to pay higher interest rates and make on-time payments.Can you be denied at 700 credit score? ›
A high score doesn't guarantee approval
A high credit score can help you achieve many financial goals, but you may be surprised that it doesn't guarantee you automatic approval for every credit card you want. Experts say a FICO score of at least 700 can qualify you for just about any card on the market.
You can borrow $50,000 - $100,000+ with a 720 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.Can I get a car with a 700 credit score? ›
As you can see, a 700 credit score puts you in the “good” or “prime” category for financing, making 700 a good credit score to buy a car. While it's always a good idea to get your credit score in its best possible shape before buying a car, if you're already around the 700 range you will be good to go.What is the most important thing to do before buying a house? ›
Check your credit score
Your credit score will help you determine your financing options; lenders use it (among other factors) to set the terms and rates of your loan. The higher your credit score, the lower the interest rate you will be eligible for — which means that lower scores equate to more expensive mortgages.
Location, size, age, condition, value, and your budget are all important things to keep in mind. It's important to do your research and make sure that you're getting a good deal on the property.What to look for when viewing a house checklist? ›
- Why is the seller moving? ...
- What comes with the property? ...
- How old is the roof? ...
- How old — and how efficient — is the heating and cooling system? ...
- Are there any disclosures? ...
- Are there any problems with the house? ...
- Have you made any additions or renovations? ...
- What's the water pressure like?
- Determine how much house you can afford. ...
- Research your housing market. ...
- Build your savings. ...
- Reduce your debt. ...
- Improve your credit. ...
- Get pre-approved for a mortgage loan. ...
- Shop for a home and make an offer. ...
- Location and neighbors/neighborhood. ...
- Square footage and floor plan. ...
- Roof and gutters. ...
- Signs of water damage. ...
- Electrical panels. ...
- Furnace and AC units. ...
- Cracks in exposed concrete, uneven flooring, doors that stick. ...
- Yard size, features, and shape.
- Neighborhood Safety. ...
- Closest Grocery, Pharmacy, and Department Stores. ...
- School District. ...
- Nearby Parks, Walking Paths, or Dog Parks. ...
- Commute to Work. ...
- Types of Restaurants in the Area. ...
- Things to remember.
What are two disadvantages of owning a home? ›
- Costs for home maintenance and repairs can impact savings quickly.
- Moving into a home can be costly.
- A longer commitment will be required vs. ...
- Mortgage payments can be higher than rental payments.
- Property taxes will cost you extra — over and above the expense of your mortgage.
- Don't compromise because of a time crunch. ...
- Avoid online lenders. ...
- Avoid homes that need too many updates. ...
- Pretty investor flips may hide expensive flaws. ...
- Don't pass over a home that has easy fixes. ...
- Know how to spot houses with visible signs of foundation issues. ...
- Avoid flood plains. ...
- Be sure the property is insurable.
- Hold the criticism until after you leave.
- Avoid making an emotional decision.
- Don't ask intrusive questions.
- Avoid sharing too much.
- Don't say the price is unrealistic.
We recommend first-time home buyers view around 6 – 12 homes before buying. This ballpark figure should be just the right amount to help you find the perfect home in your price range. Weighing your options is essential, but looking at every home that piques your interest can have downsides.