Look to see if there is anything unusal about the land that the house is built on. Is the section prone to flooding? Is the driveway shared with another property. Are the boundaries and fences where they should be? This is where professional advice is needed to ensure you don't buy into a problem.
Yes, probably! When done professionally, a home inspection will be extremely thorough and, will most likely identify some problems (or protential problems). Most problems will be minor in nature and can be repaired after closing. Even newly constructed homes will have problems noted on an inspection report.
However, the home inspector will sometimes identify major, expensive to rectify problems. When this happens the buyer and the seller will often negotiate a solution before closing. If major problems are found, the buyer may insist on paying a lower purchase price, or possibily to change the contract terms. It really depends on the situation, the nature of the problem(s) and the terms and conditions in the contract.
That is why, before signing any contract, it pays to seek proper legal advice. You need to protect yourself in the likelihood of a home inspection report identifying problems.
When buying a home it always pays to arrange a home inspection. These people are professionals and know what to look for. They have the correct equipment and can identify problems that the average person wouldn't find.
The home inspector's report will review the condition of the home's heating system, plumbing, electrical system and central air conditioning system (temperature permitting). The home inspection report should also review the roof, attic, visible insulation, walls, ceilings, floors, windows, doors, foundation, basement, landscaping, and visible structure of the property.
Their are several organizations that provide support for the Home Inspectors. Inspectors who belong to an association and abide by a set of guidelines generally promote professionalism in the industry.
The big question then: Is the home inspector, who is about to inspect the property you are buying, a member of a professional Home Inspection organization?
The point is that most companies affiliated with professional organizations are serious about what they do. These companies are also usually well aware of changes in the building codes and city requirements as well as new developments in the industry.
National Home Inspection organizations include:
Choosing a price range is a critical factor when searching for a home to buy. Your real estate agent should look for homes in the range you're comfortable with, not merely what you qualify for. If you locate a home that comes in under budget - great!
If the asking price is slightly over budget, you might be able to negotiate the price down. When it's time to make the offer to buy a house, expect your real estate agent to provide a list of comparable sales in the area. This should help you in deciding the amount to offer.
Some of us spend hours wandering malls looking for fashion items, or think nothing of spending 40 or 50 minutes in the supermarket to buy $200 worth of groceries.
Yet, for most of us, the purchase of a home is one of the largest transactions we will ever make. That is why the purchase of a home needs to be taken seriously and be thoroughly researched.
If you are borrowing money to buy a home - you need to get the best mortgage deal to suit your needs. If you are signing a contract to purchase the home - you need to get good legal advice. If you are using the services of a real estate agent - you need to select a good one to represent you.
The same goes for arranging a home inspection. If you are going to take the purchase of a home seriously - then arranging a home inspection is usually a worthwhile investment.
A trained home inspector is equipped to evaluate the home in detail and give you a report that will allow you to make a good decision about purchasing the home. An home inspection report will describe the property in detail and (when done thorougly), will identify potential problems.
Visit open houses and ask lots of questions. Doing this will give you a good feel for how properties compare on price, features, quality etc. When I bought my last home I visited over 60 open houses before I put in an offer.
If you need to take out a mortgage to by the property, then get pre-qualified for a loan before you start looking for a property to buy.
A mortgage lender will want the answers to questions like:
Remember too, when interest rates are low, you may be best to opt for a fixed rate mortgage where the interest rate is established at its origination and continues unchanged through the life of the loan.
Decide what features you want in a home before you start looking. Decide what features are high priority and what features you might be prepared to compromise on.
Always look for a home which comes closest to what you want. Don’t have such a detailed list of requirements that you literally shut out any chance of finding a suitable home.
The golden rule when buying a home is to do your research, get a property appraisal, get a feel for the home and area it is in, before you sign any contract.
Once you’ve bought the property, it’s too late to change your mind.
Read and understand documents and contract before you sign. If in doubt always seek professional legal and/or financial advice.
A good real estate agent will usually make documents available to you for preview before you are required to sign them. If at all possible, ask for these documents upfront.
As a buyer, ask for copies of:
It’s been said that knowledge is power. But, in my view knowledge is NOT power. Knowledge PLUS action is power.
You see, the thing is, the information in this real estate blog and on my real estate tips website will NEVER work if you don't work it.
It's one thing to want to buy or sell property, but quite another to actually set goals to make it happen. Moving from a "gonna-doer" to actually "doing it" means working towards goals in a conscious and dedicated manner.
If you set yourself up to expect success in real estate you will achieve success. It starts by telling yourselves that you can do it. It is about making things work rather than focusing on what you can't do and telling yourself you can't. The basic concept is really that simple, but extremely powerful.
Cosigning means using your good credit to help your someone else qualify for a loan. Be careful about cosigning especially with family or friends because when you co-sign for a loan, you're also responsible for it. Consider what could happen if the other party failed to pay the mortgage... the house could go into foreclosure. Why would you want to risk your good credit for someone else who may not have a good credit rating?
It is important to note that you would have to be able to qualify for the loan in the debt-to-income ratio and have the credit to qualify for the loan.
An alternative to cosigning is for you to take full ownership of the property and then sell the house to the other person under a contract. In this case the other party could have a certain amount of time (maybe 2 years) to purchase the property for an agreed price by refinancing the existing loan into his or her name. The contract could include a clause whereby the selling price is increased by 10% per year to give the other party the incentive to refinance as soon as possible. The other party could then get ownership when he or she acts in accordance with the contract terms and conditions. The other party would make payments to you and you would pay the mortgage.
Always seek professional legal and financial advice before entering into any legally binding contract. This is especially so if there is a risk of damaging your financial position or your your good credit record. Remember too, that refinancing an existing loan is usually much quicker and easier than arranging a new loan.
In summary, you can cosign, but YOU ARE LIABLE for the loan. This is a serious matter, don't just seek help from this site, consult legal, financial/credit and tax professionals.
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