The Best Advice for Your Protection Before Signing a Property DealPosted on: October 18, 2020 by Gavin Muirhead
Buying a property is a major milestone. It will most likely be the biggest financial decision you will ever make in your lifetime. For this reason, it is important to consider everything before signing the property deal. The process can become overwhelming, but by taking everything one step at a time, you can make the decision easier.
Key Points to Consider Before Signing a Property Deal
Before you sign the property deal, take into consideration the following points:
Determine How Much You Can Afford
Before you get your heart set on property, determine how much you can afford to pay. Take into consideration that you have to buy home insurance that will be escrowed through your mortgage company if you have a loan. There are several mortgage calculators online to help determine your price range. Knowing ahead of time will save you time. You will know which properties to look at and which ones to pass up. Getting preapproved will also help speed up the entire process. It will also show the seller that you are serious about purchasing a property.
Save for a Down Payment and Closing Costs
Before shopping for property, save as much money as you can. A typical down payment should be 20% of the total price. Closing costs can range between 3% to 4% of the purchase price. This might seem like a lot of money, but having it available will save you money in the long run. Many lenders also have other options for financing down payments, and some sellers can agree to pay closing costs to close the sale. Talk with several lenders to find out what the best option is for you.
Shop for Your Loan
Mortgage rates, fees, and closing costs vary between lenders. Compare multiple mortgage lenders before making your final decision.
Research the Location
When you buy a property, it is important to check out the area. Look at the crime rate and review the sex offender database. Drive around and get a feel of the neighborhood. See if there are local businesses doing well in the area. Look for the closest police and fire stations that will service your area. Check out any parks and exercise trails. The more involved your neighbors are in the upkeep of the community, the safer it usually is.
Check out the School District
Even if you do not have kids, it is important to check out the school district because this affects the value of homes. Schools districts with high-level SAT scores and large graduating percentages often have properties that retain or increase their value.
Look at Local Insurance Rates
Insurance rates can vary greatly. The location of the property can impact the cost. Check with several different insurance companies to get an idea of the insurance prices in the neighborhoods where you are interested.
Check the Taxes
Research the local taxes in the area. Do not be taken off guard by unexpected taxes. Check the property tax, state tax, city tax, school tax, sales tax, income tax and gas tax.
Review all Title Registrations
Registrations can be a good thing, but they can also restrict you from doing what you want with the property. Know exactly what you will be allowed to do with the property before you sign the property deal.
Get Everything in Writing
Just because you make a verbal agreement with the seller does not mean that they will keep their end of the bargain. To cover yourself as well as the seller, make sure to get everything in writing so there are no misunderstandings.
Run a Background Check
Background checks are often run on both buyers and sellers alike. Background checks can help to authenticate property ownership. They will also find issues that may arise during the process such as tax debt, liens and abstract of judgment.
Completing the Process
Buying a property can be exciting, but do not jump into it without doing all your research. Be prepared and get the help that you need. Many buyers start looking at homes before doing any research. This can make the home buying process more stressful than it needs to be. Before you begin viewing homes, know where you want to live and get preapproved for a loan. This will speed up the process tremendously.
You Can Count on Our Results
A background check is important when buying or selling a property. It can save you the headache of having a deal fall through. At Affordable Background Checks, our team is one of the most experienced in the industry and the best in your area. We will get you results that you can trust, and we will get the job done fast. Your satisfaction is guaranteed, so contact us today!