BDRE drafted home buyer tips and hints that may help you in your home search and purchase, they are:
- Home Payments: Break down home payments in a monthly fashion and make sure to add in the city/town taxes, insurance, PMI, and any HOA fees to get a real monthly number. It’s important that you can match up this number to your monthly income and other expenses to know where you will stand. The mortgage app on our website is great for this. Match this number up against your current rental payments to great a good idea of what monthly payment range you are comfortable with.
- Home Wants: Remember, in most, if not all, instances a home will not have 100% of what you are looking for.
- Home Inspection: Always use the home inspection process after an offer is accepted to make sure the home does not have any hidden faults that would change your mind about buying it. BDRE can guide you on finding reputable home inspectors.
- After the Home Inspection: Please remember that every home inspection finds faults with every property, so be ready for it. Keep your eye on the major items and any items that would be a deal breaker to you. The home inspection is like an insurance policy — looking for major defects that could turn the home into a money pit. You would be better off walking away the money pit and finding something better.
- Pre-Approval: When getting ready to buy a home, watch your purchases around that time as some purchases can affect your pre-approval and loan approval amounts. For example: no big credit card purchases and no new cars — wait until the home closes for these purchases, if they fit your budget.
- Counter-Offer: In the counter offer process, remember that in Massachusetts a verbal offer is not binding and you need to have it in writing and signed by both parties. So once you have reached an agreement, get that offer signed and over to the seller for signing as soon as possible.
- Loan Commitment Letter: Around 10-15 days before closing you will need to have a loan commitment letter from your lender. This states that you are approved for the loan and that the lender is ready to move forward with the closing. You need to make sure you get this, or get a signed time extension, to protect your earnest deposit money on the P&S. The bank may only need a day or two more to approve the commitment, but get the signed extension no matter what.
- Foreclosures: Foreclosures may seem like a great deal, but always take into consideration that most, if not all, of them need lots of work and will cost you some money to be up and running before move in.
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