When you buy a house, it’s a significant commitment. Whether you intend to live in it or it’s an investment, you’re going to put a lot of your money into it. It would be a disaster if you signed the contract and went to look at your new property, only to discover a raft of problems. You need to make sure that you’re making a sound investment, and that you won’t regret committing your time and money to something so important. Before you sign the contract, there are several things you should do to avoid any legal issues or unexpected problems with the property. Don’t buy anything without doing these essential tasks first.
Perform a Title Search
When you’re researching a home that you’re interested in, performing a title search is an essential task. Doing this will show you the name or names and addresses of whoever currently owns the property. You’ll also be able to see past owners, as well as any liens, charges and interests that might be on the property. Conducting a title search helps to protect you by letting you know if there are any issues you should be concerned about.
Have Your Lawyer Check the Contract
Most people will struggle to understand the entirety of a housing contract, so it’s important that you don’t sign it right away. If you use an estate agent, they can help you understand the terms of the contract. But your attorney should also look at it for you and see if there is anything you might want to change. If the contract is a standard form one for your state, you probably won’t need a lawyer, but you can still use one.
Make Sure you’re Not Paying Too Much
Of course, ensuring that you pay the right amount for the property is vital. When you make an offer, you’ll need to take several things into account. However, the most important thing to think about will probably be how much your mortgage lenders are willing to give you. They will have someone independent value the house to determine its worth. They’re unlikely to help you pay for your home if you want to offer way over the market value.
Know What Needs Fixing
Having the home inspected is another crucial task. You need to flag up any major problems, or even minor ones so that you can work out what you would need to spend on top of buying the home. If you find that the house needs a lot of work you weren’t aware of, you might decide not to go ahead with the purchase. Another option is to have the cost of the repairs written into the contract.
Don’t forget to check who will be responsible for insuring the home during the handover period. You need to ensure that the property is protected, and it might be your responsibility to take out a policy. You don’t want to leave it unprotected during the purchase process, especially if it will remain empty for a period.
Espana Gomez is an author of this blog. Recently she works as an interior design assistant in her town. She loves daydreaming about beautiful homes and interior decor.