If you are preparing to buy the house of your dreams then congratulations, this is a major achievement! However, the road to buying a home is a bit daunting, and if you don’t know where to start or have begun doing some research, this guide contains the five most important factors that you have to consider before making the big investment.
Today’s housing marketing has a very aggressive trend, which means you need to create a “task force” of all the right professionals who will help you make the right decision as a home buyer. This is just as important as getting your finances in order. Let’s look at five professionals you need to have on your team on your home-buying journey.
- Lenders. Compare Different Lending Institutions
The first major step you need to take get one step closer to buying your dream house is bringing a good lender on board. A lender that helps you make better decisions and guides you is a major win. Or if you manage to have one that you can get in touch with easily via phone or email can also be important for you.
If you are looking for a house in a hot market, the best thing you can do is hunt for lenders that offer a pre-approval letter. This can significantly help you solidify your offer. Moreover, if you’re searching for a lender that can deliver an affordable discount on your loan, ask them if they have savings offers based on where you are located, or if they offer lending offers for low to moderate income families such as Fanny Mae’s HomeReady.
Irrespective of what your personal needs are, it is vital to ensure that you understand the pre-approval process of each lender. If you think your lender is a being a bit difficult at the initial stages, drop it. But before you zoom in on another lender, get an official LE (loan estimate). The LE is a standard document that contains a clear summary of your monthly mortgage payment program, its features, and the risks and costs associated with it.
- Real Estate Agent. Make Sure You Thoroughly Interview and Evaluate Agents Before Hiring One
You would be surprised to hear that many people don’t conduct interviews with real estate agents before they decide to bring them onboard. You have to understand that not all real estate professional are equal in terms of expertise, skill and experience.
So it is vital to conduct evaluations and interviews with real estate agents before hiring them. You could also do some due diligence online, see if they have a portfolio on their website and be sure to check client testimonials and reviews. You could also individually get in touch with some of the clients via phone, to ask them how their experience was with a particular real estate agent. Remember that great real estate agents have a proven track record, which comprises of winning bids and happy clients.
- Real Estate Attorney. Research and Evaluate Properly
Real estate attorneys are responsible for helping clients draw up, negotiate and thoroughly review your terms of contract. This also includes different clauses pertaining to timelines and deadlines of the contract as well as other contingencies.
However, one of the most important benefits of a real estate attorney is the fact that they help protect your rights and ensure you are not swindled out of a good deal. They will evaluate and review all the necessary documentation such as disclosures and more importantly, your closing documents. They will also help eliminate any problems associated with title insurance.
So, you need to ensure you pick the best one for your team. Do some research online, look for credible attorneys with a solid track record and a list of happy client lists. Also, do not forget to interview the potential real estate attorney!
In addition, many states require attorneys by law and New York state is one of them.
- Home Inspectors. The Counterpart to Appraisers
Think of home inspectors as counterpart of an appraiser. Appraisers are sent in by the lender to estimate the accurate value of the property you intend to buy. Home inspectors on the other hand, are on your team. They will help inspect the entire property from roof to basement, looking for major and minor damages, potential restoration possibilities, code violations, structural damage, water issues, seepage, mold, etc.
Moreover, they will provide you with a detailed assessment of repairs and replacements costs on things like plumbing and heating, electrical, heating, air conditioning, insulations, etc. The same goes for roofs, walls and the exterior layout of the house. A routine home inspection can last about two to three hours and could cost up to a couple of hundred dollars. However, there are also some professional home inspectors that provide a whole range of repair and replacement services and could offer you a good discount deal if you hire them.
- Homeowner’s Insurance Providers
Homeowner’s insurance is very important; it can help protect you and your lender from bearing undue liabilities when it comes to major damages. And as a prerequisite to your lending application, your lender will require the total cost of your home insurance. They will also need a confirmation of the insurance cost paid before the loan is processed and finalized.
So, now you know about five important professionals you need to have on your team. Buying a home is a lot more than visiting nice homes and picking one. Not only do you need professional help when visiting the different houses, there’s a ton of paperwork that needs to be managed hand numerous formalities handled. You simply can’t do it all yourself. Remember the advice regarding how to hire and work with these professionals when you’re shopping for a house.