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Monday, August 12, 2013

Common things people look over when buying a home

Buying a new home can be exciting, which means that certain important issues could be forgotten during the commotion. Buying a home is a huge commitment, and time and care need to be taken during every step of the process. A single misstep during the home-buying process can lead to tremendous expenses down the line.

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Getting an official inspection

Not all mortgage loans require an officialinspection of the property, and if a home buyer is buying with cash they don't need to do one, either. Many home buyers may go over the property carefully and believe that it is entirely up to code, but there are many issues that even a very careful buyer may miss. Further, not all official inspections cover all aspects. Some inspections may only look for mold and structural damage, neglecting to check that everything is up to code.

A home buyer might find themselves with the perfect property, only to later find out that a porch is a few inches long or that a water feature in the back yard is a few inches too tall. While these issues may sound trivial, they can actually cost thousands of dollars to correct later, and this may be money that the home buyer did not anticipate having to spend. By forgoing the official inspection, you may also miss significant structural damage, and this type of damage can lead to tens of thousands of dollars in repair costs.

Getting an official appraisal

Along with an inspection, an officialappraisal is also necessary when purchasing a home. Though the home may have an old appraisal or property value appraisals may be used, it's important to get a current appraisal that takes into account the current market rates. Not only does this make sure that the home buyer does not spend too much money on their home, but it also can give them leverage to make a lower bid on a property that they still truly want.

Without an official appraisal, it's usually difficult to say exactly how expensive a home might be. The market can vary very greatly from neighborhood to neighborhood, and it has been fluctuating especially in recent years, which makes approximations even more difficult.

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Considering extra costs

The bank will consider the costs of the home buyer's mortgage and their property taxes when pricing out how much home the buyer can afford. However, they will not calculate in any homeowner's association or apartment owner association costs, and these can actually be fairly significant. A home buyer must seek out all relevant costs for their home to be absolutely certain they can afford it. Association costs can be anywhere from a few dollars a week to hundreds of dollars every month.

Home buyers who are very close to exceeding the maximum amount they can afford for a home may be pushed over their monthly budget by a large association fee. Certain towns may also have association fees that need to be paid, either on a mandatory level or to take advantage of amenities in the town. The perfect home could be found in the perfect neighborhood only to find that a $300 or even $400 association fee is tacked on at the end of every month. Nonpayment of association fees can eventually lead to a lien on the property, so it is very important that they are paid and that they can safely fit into the monthly budget.

With these considerations, you can successfully buy a home that is safe and up-to-code, will have few major surprise expenses in the coming months, is not overpriced and is truly in your budget. Just be careful that, in the excitement, you don’t overlook a single one of these important steps!

About the author: This article was contributed by Richard Craft, a regular contributor here at Moneycation. He writes this on behalf of Quick Roofing in Dallas, your number one choice when looking for roof repairs in the Dallas area. Check out their website today and see how they can help you fix the roof of your new home!