Tthings to consider when considering a home purchase

So you are tired of renting and have decided to buy a home. You have scrimped and saved your money for a down payment, now what? Here are a couple things to consider.

How much home can you afford?Contact a qualified mortgage professional and get preapproved for a mortgage. They will ask you questions to determine the ratio between your income and your debt. This will help them determine the price range you can afford. Make sure that the payment for a home in the price range they recommend is also a payment that you feel comfortable with. That way, you will not fall in love with a home only to find you can not afford it. Or worse yet, buy a home and not be able to furnish it and make the payments. Shop wisely and make an educated decision.

How do I find a home? Do not limit your search to looking on the Internet or in magazines. Find a Realtor who you have confidence in, to represent you and help you find a home. A Realtor has the most up to date information on homes out there through the multiple listing service. The homes you see in magazines, websites, or even newspapers could have already been sold.

How do I chose the right Realtor? Choosing the right agent is very important, they will be representing your interests through the whole transaction. Ask your family or friends if they have recently bought a home and could possibly recommend someone to you. Feel free to interview more than one. Make sure whoever you select is dedicated to serving your needs throughout and after the sale. Also make sure that they want a long term business relationship with you, not just one deal.

Should I have a home inspection?I always recommend a home inspection to my clients. Trying to save the couple hundred dollars by not getting an inspection can cost you thousands later. A home inspector can detect issues that you may not see. They will also educate you on the maintenance that may be required. Home inspections however are to uncover material defects, not minor maintenance issues.

What else do I need to consider when shopping for a home? You need to consider location. Is the home convenient to where we work or attend school. If you have children, you will want to consider the school district. Is it rated good? Perhaps the private schools or colleges nearby. Is your family size going to change within 3-5 years? Will the home be big enough or perhaps too big?

How much money do I need to close?In addition to your down payment, you will also need closing costs. Your Realtor and/or mortgage professional will give you an estimate when you put in an offer on a home. As you get closer to your closing date, the numbers will be closer to the actual cost. Closing costs include charges from your mortgage company, title insurance, prorated real estate taxes and association fees (if applicable), escrows for taxes and homeowner insurance if required by lender , home owners insurance policy, attorney fees (if applicable) and other possible costs. Make sure you know what will be required.

Should I purchase a Home Warranty?I suggest a home warranty to all my clients whether they are buying or selling a home. In most plans, the mechanics of the home (electric, plumbing, heating) are covered. You must call the home warranty company first, before the repairman. Then you just pay a deductible. As a buyer, you could request that the seller provide you a warranty or purchase one yourself. There are more than one warranty companies out there, so make sure you understand what is covered and what is not.

When you would like to start walking through some current homes that are on the market in the Bucks County Real Estate market, call Linda Tremblay or Marcie Purcell.