Buying a home can be scary, there’s no doubt about it. But, there are a few common “What If’s” that actually have easy and quick solutions to give you better peace of mind through this nerve wracking transaction. We’ve compiled a list of the top 5 concerns home buyers have and why you shouldn’t worry about any of them. You’ll be on your way to your dream home in no time!
1. What if we find problems with the home?
While some people seek out a good fixer-upper, most people don’t want to find out that their prospective home has a leaky roof or a cracked foundation. Well, this is one problem that comes with a pretty simple solution – a Home Inspection.
An inspectors job is to thoroughly inspect the home and make sure you know exactly what you’re getting into – before you shell out the money. If there is any problems with the home, the inspector will let you know what they are, how much money and effort they will take to fix and what may need your attention down the road.
Having a home inspection is essential if you want to know if the home you are thinking of purchasing is really worth it. Sometimes, a home may have unfixable hidden problems, like a cracked foundation or sinkage. Not only will this give you an insight into the kind of condition your home is in, it will also give you room to negotiate the price of the home if something does need to be fixed, like a damaged roof or leak in the basement.
2. What if I lose my deposit?
Much of the time, when it comes to purchasing a home you will be asked to put down a deposit on the home that will remain in escrow. Usually, this is roughly 3% of the homes value, or in dollars, $15,000 on a $500,000 home. This isn’t pocket change to most people so it can be very daunting to put up that type of cash without knowing if the home is yours.
The good news is, it’s next to impossible to lose your deposit as a buyer. It’s customary to sign a contract between buyer and seller and since escrow accounts need both the buyer and seller’s signatures in order to remove any money from the account, your deposit won’t be taken without your consent.
Working closely with a Realtor can help you get through the “in-between” time of inspections, disclosures or loan applications so your money can get out of the escrow account and you can get into your new home.
3. What if I won’t be able to find a home in time for…
First off, it’s never a good idea to buy a home because of a time-crunch issue. Many home buyers have deadlines they have to meet such as a lease running up in their current home or their previous home being sold. These are still not good reasons to rush into a real estate transaction which takes a lot of time, effort and thought.
Instead of feeling pressured to buy a home when your current situation runs up, give yourself some much needed time to scour the market for your dream home by having an alternate living arrangement. Maybe you’ll live with your parents or a friend for a month or two while you home hunt, or maybe you’ll rent a small apartment month-to-month. There are many options that don’t involve jumping into a transaction that you just aren’t sure of.
4. What if I can’t afford it?
This a very popular fear among home buyers, especially those looking for their first home. With rent, things are often more flexible, but what if you get sick or injured and can’t afford your mortgage payment?
The only surefire way to avoid this situation is to have an emergency fund set up before buying your home. This should include enough money to cover at least one month of expenses to keep you feeling safe. Another good backup plan to have is a comprehensive health insurance plan that will cover serious injuries or illnesses should they come up.
Before signing on to any mortgage, make sure to make a complete budget and see how much wiggle room you will have each month. If it’s too tight for decent savings, you may have to rethink your choice of home and go with something cheaper.
5. What if my agent isn’t on my side?
A good Real Estate agent will always have your best interest in mind. It is their business to find you the home of your dreams and ensure everything goes smoothly during the transaction process.
It’s a good idea to “shop around” for an agent you really click with before beginning the home buying process. It’s a good idea to have a one-on-one with your agent before starting the hunt for a new home to explain exactly what you are looking for, and what you aren’t. Once you are sure you are on the same page, you can move forward in finding the house of your dreams!
Remember, you don’t have to stick with a Real Estate agent if you feel doubts or question their motives. Simply move on and find on you trust will find what’s best for you.
So if any of these “what if’s” have been playing in your head, rest assured there is always an answer when it comes to home buying!