things to know before buying a house

Buying a house is a major financial and personal decision. Here’s a comprehensive list of things to know before buying a house, broken down into key categories:

🏦 Financial Readiness

1. Know Your Budget
   • Factor in down payment, monthly mortgage, insurance, taxes, and maintenance.
   • Don’t forget closing costs (typically 2–5% of the home’s price).
2. Check Your Credit Score
   • Higher scores get better mortgage rates.
   • Aim for 700+, but 620 is often the minimum for conventional loans.
3. Get Pre-Approved for a Mortgage
   • Shows sellers you’re serious and gives you a clear price range.
4. Understand Loan Options
   • Fixed-rate vs. adjustable-rate mortgages
   • FHA, VA, USDA loans (if you qualify)

📍 Location Considerations

5. Neighborhood Research
   • Check crime rates, school districts, amenities, and future development plans.
   • Visit during different times of day.
6. Commute and Accessibility
   • Test the commute to work, public transport options, road conditions.

🏠 Property Condition & Type

7. Hire a Home Inspector
   • Uncover structural issues, pests, HVAC/plumbing/electric problems.
   • Make the purchase contingent on inspection results.
8. Understand What You’re Buying
   • Condo, townhouse, single-family, multi-family — each has pros/cons.
   • Check HOA rules and fees if applicable.
9. Age of Major Components
   • Roof, HVAC, water heater, windows — replacements can be expensive.

📄 Legal and Contractual Details

10. Read the Seller’s Disclosures

• Known issues must be legally disclosed (e.g., past flooding, foundation problems).

11. Title Search and Insurance

• Ensure the seller has clear ownership and no legal claims on the property.

12. Review All Documents Carefully

• Understand contingencies, repair requests, deadlines, and terms.

💡 Long-Term Thinking

13. Resale Value Potential

• Consider trends in the neighborhood, school rankings, and nearby businesses.

14. Future Life Changes

• Plan for kids, job relocation, or aging family members.

15. Maintenance Costs

• Budget for ongoing upkeep (e.g., lawn care, repairs, property taxes).