Home purchase tips for beginners
Pay close attention to reservations and clauses that may creep into both home and owner insurance. These can be very general and at worst make insurance really useless. For example, if there are many K3s in roof construction, then the insurance may find that it does not cover coverage in terms of roof damage. Thus, all damage shows on or off the roof are not covered. With the homes for sale in Laguna Beach CA you can have all the settings.
The pitfalls are many when buying housing for the first time, and therefore it can pay off with thorough preparation before the purchase agreement is signed as a first-time buyer or generally as a buyer. No matter how many times you have shopped, it is important that you prepare well and get professional advice along the way. If this is the first time you have to sign a purchase agreement, it is essential to get sparring from external and independent parties during the process so that the dream home does not end up being a nightmare.
In general, there are four professions that you must bring to the team when you buy a house, and you should be aware that they do not all deal with your interests in focus; there are other stakeholders in the game.
The Banking Advisor
Before you even get to bid on a house or apartment, go to the bank and talk to your advisor. You need to find out how much you can borrow and how you want to borrow the money.
The bank will ask to see your budget, your most recent annual statement and possibly your last three paychecks. If you buy the property with a partner, their papers must also be put in the pile. After that, the bank starts to figure out how much you can borrow, and they primarily look at two things: your availability amount and your debt factor.
The available amount is the amount you have left each month when all fixed expenses are paid i.e. money for food, clothing, cinema trips etc. The higher the amount available, the more money you can borrow. A debt factor is a number that tells you how much you owe in relation to how much you earn. This includes all loans, such as car loans, student loans, cash loans etc., and the lower the number, the more creditworthy you are in the bank’s eyes.
When talking to the bank, be aware that they obviously want to make money on your loans. Therefore, you may well be skeptical about the loan proposals they submit to you, and it can often pay off to ask more banks so you have something to compare with.
The Realtor
Although more and more homes are being sold through self-sale, most homeowners are still going through a real estate agent. You can use the respective brokers’ websites to search for housing or you can go to a broker in the area where you want to buy a home. When you have found a house or apartment you would like to see, you make an appointment for a show and you will be sent the sales record, the condition report and other important documents.
