BUYING A HOME, BEING PREPARED WILL MAKE THE PROCESS GO SMOOTHER
Buying a home is not easy; in fact, it’s a full time job. That’s why you need to be well prepared before you start; being prepared will make the process go smoothly. In fact, once you’ve done your homework, you will be in a position to be the boss and delegate work to your assistants. Consider yourself to be the CEO of a company that you have formed for the purpose of buying a home; you have funded the operation, and you will be paying your temporary assistants. Your assistants include your real estate agent, your appraiser, your home inspection engineer, your mortgage lender, your title company, and most often, your attorney. These professionals are being paid to facilitate your operation, and provide you with proper advice. Of course, it’s your company and you make the final decisions.
Let’s assume that you’ve already weighed the advantages of renting versus buying, You know that owning your own home has financial benefits in terms of tax relief and equity appreciation, owning has nice lifestyle benefits and you can make alterations to suit your own taste. On the other hand, you know that buying a home means that you are prepared to accept a large long term debt and that initially; you will be depleting most of your financial resources. You know that there is no superintendent to call upon, and that there will be maintenance and repair expenditures to be prepared for. You know that, similar to other investments, there is a possibility of capital depreciation if the neighborhood does not maintain the same value that it had when you purchased the property. Like many other persons, you have decided that the advantages outweigh the disadvantages.
Home ownership can mean the acquisition of a home, a condominium, a cooperative unit, or a home that is part of a home owner association. Although each has its own special considerations, the home buying procedure is similar for each Now that you are ready to go house hunting you probably have a good idea of your choice of locations. It is wise to consider neighboring locations, there can be a significant difference in home size, values, taxes, community services, transportation, etc. so it’s worth taking the time to view neighboring areas. You have probably given consideration to style of home, new or old, move in condition, or you are willing to accept a home that needs some work in order to purchase at a lower initial cost (although your cash flow analysis should take into account future expenditures for the work that will need to be done). An older home will usually have higher annual maintenance costs than a newer home.