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
- 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).
- Check Your Credit Score
- Higher scores get better mortgage rates.
- Aim for 700+, but 620 is often the minimum for conventional loans.
- Get Pre-Approved for a Mortgage
- Shows sellers you’re serious and gives you a clear price range.
- Understand Loan Options
- Fixed-rate vs. adjustable-rate mortgages
- FHA, VA, USDA loans (if you qualify)
📍 Location Considerations
- Neighborhood Research
- Check crime rates, school districts, amenities, and future development plans.
- Visit during different times of day.
- Commute and Accessibility
- Test the commute to work, public transport options, road conditions.
🏠 Property Condition & Type
- Hire a Home Inspector
- Uncover structural issues, pests, HVAC/plumbing/electric problems.
- Make the purchase contingent on inspection results.
- Understand What You’re Buying
- Condo, townhouse, single-family, multi-family — each has pros/cons.
- Check HOA rules and fees if applicable.
- Age of Major Components
- Roof, HVAC, water heater, windows — replacements can be expensive.
📄 Legal and Contractual Details
- Read the Seller’s Disclosures
- Known issues must be legally disclosed (e.g., past flooding, foundation problems).
- Title Search and Insurance
- Ensure the seller has clear ownership and no legal claims on the property.
- Review All Documents Carefully
- Understand contingencies, repair requests, deadlines, and terms.
💡 Long-Term Thinking
- Resale Value Potential
- Consider trends in the neighborhood, school rankings, and nearby businesses.
- Future Life Changes
- Plan for kids, job relocation, or aging family members.
- Maintenance Costs
- Budget for ongoing upkeep (e.g., lawn care, repairs, property taxes).