Surprise home buying moves will indeed be a part of the process. So, don’t panic. As a home buyer, you will encounter unknowns (at least to you), as well as unexpected circumstances. It’s just part of the experience. Now, that doesn’t mean it will be filled with all sorts of catastrophes. But, a sizeable percentage of home purchase transactions do include bumps along the road to closing. In fact, some even have problems after the closing occurs. Moreover, on average, approximately 10 percent of sale transactions fall through. One possible reason is some home buyers just aren’t ready for one or more parts of the process.
A Brief Guide to the Home Buying Process
In order to buy a home, you’ll need to start preparing early. Before you go through this process, start to pay down your debt a couple of years or more out. Once you’ve paid down debt, then it’s time to start saving up a down payment, putting money aside for inspections, the closing, moving expenses, and miscellaneous items along the way. Plus, you should have between 6 to 8 months worth of expenses saved up, just in case.
“Wouldn’t it be great if buying a home were as simple as it is in a game of Monopoly? All you’d have to do is find a desirable neighborhood, hand the bank a few bucks, and you’d receive a house. Of course, the home-buying process is a bit more complicated in real life (especially for first-time home buyers), but it’s not impossible. Competition among buyers in many markets has gotten intense, so if you’re serious about homeownership, you’d better get your act together.” —Realtor.com
A few months before you begin your house hunt (about 6 to 8 months prior), you should begin your preparation. Go to Annual Credit Report.com and get your files from all three bureaus. (You can do this once per year, for free.) Review these documents carefully. Dispute any errors in writing, through snail mail. Follow up to ensure the errors are corrected. Then, you can go for a pre-qualification and follow it with a pre-approval for a mortgage.
Top 4 Surprise Home Buying Moves most Buyers don’t Know About
So, just what are the top surprise home buying moves buyers don’t know about? Well, these do come up during the process, though not all are always part of the experience. Here’s what you need to know:
- Scrutinizing property disclosures. When the seller accepts your purchase offer, you’ll receive a property disclosure. Don’t just brush this aside. Pay close attention to the details and be sure to follow up with the seller about anything of concern.
- Buying residential home title insurance. You’ll need to obtain title insurance in order to protect your rights to the ownership of the house. It’s usually required when you apply for a mortgage. And, it’s something that’s very important.
- Preparing for the upcoming home inspection. A home inspection helps you as the buyer identify any existing problems, as well as possible future issues. So, take full advantage, attend the inspection and ask plenty of questions. This way, you’ll be in-the-know and will more effectively avoid surprises down the road. Plus, you’ll see things firsthand.
- Carefully reviewing any and all of the HOA rules. If you are buying into a HOA community, you really need to fully understand what you’re getting into. After all, these are rules you’ll have to follow. So, it’s best to know what to expect.
If you are considering buying or selling a home in Orlando, contact us for the latest market information. We’ll also provide you with the right advice about the local real estate market so you make the best decisions.