What To Look For When Buying A House

There's a lot to look for when you're buying a house. It's a time-consuming process, from getting a loan to doing your final walkthrough.

Some preparation can improve the odds of buying the right house, whether it's a starter home or your forever home. You could weigh the features you want against other factors, from red flags to school districts to the price range.

Let's explore some key factors to consider when you're shopping for a new home.

Before You Start Looking At Houses

Some home buyers love perusing houses in person and online through the multiple listing service. It's easy to fall into the trap of home shopping before you have all the necessary ducks in a row.

When you do a little work beforehand, searching for your dream home or starter home can go more smoothly. There are some key questions house hunters, especially first-time home buyers, should ask themselves before they start house hunting.

Questions like: How much can I afford? How do I get preapproved for a mortgage? How do I find the right real estate agent? What are the qualities I want in a home? What type of neighborhood do I want to live in? Answering these questions one at a time, in the right order, can go a long way.

How Much House Can You Afford?

It’s hard to overstate the importance of knowing how much home you can afford before beginning your home search.

Figure out what you spend a month, how that relates to your monthly income and how much you have saved. Consider your credit score and what type of interest rates you can get on a mortgage loan. Then, you can estimate a down payment on your mortgage and how much you can afford for your monthly mortgage payment. Consider homeowners association fees and homeowners insurance, too.

It’s also important to budget for any improvements like adding a pool, replacing a roof, building a garage or other such renovations. When you’re going through this process, allow wiggle room in these estimates for two key reasons:

• Unforeseen expenses are bound to pop up.
• You don't want to struggle to make ends meet each month to buy your dream home, especially if it’s overpriced.

Are You Preapproved For A Mortgage?

Perhaps you saw a “coming soon” listing for your dream home and you want to be ready when the property officially hits the market. First, you need to know how much you can afford. Understanding your budget starts with mortgage preapproval.

Preapproval is a critical first step that will come in handy later for several reasons. Being preapproved for a home loan allows you to see what you can afford and what you want to pay. Note: These two numbers can be very different. There’s no reason to overpay for a house.

In addition, being preapproved shows a seller you’re serious about purchasing, which is critical in a buyer’s market. You’ll have more of an advantage negotiating in a competitive market, sometimes referred to as a “seller’s market,” in most locations around the country.

If you’re ready to start the home buying process, our friends at Rocket Mortgage^® can help you understand what you qualify for. They can also provide a Verified Approval Letter, which confirms your credit history, income and assets. This can make your purchase offer even stronger!

Did You Find The Right Real Estate Agent?

Having an experienced professional guide is a real benefit. Start by finding a real estate agent you trust to help you through the home search process.

Ask family and friends for referrals, read online reviews and interview several agents. Discuss your nonnegotiables and ask extensive questions about their experience with your specific situation and desired location. Ultimately, it may come down to your gut and which agent feels like the right fit.

Understanding Different Types Of Sales

There are several types of home sales and not all of them are common. Understanding the sale details can have a huge impact on the timeline of the sale, the condition of the home and more.

Here are types of atypical sales to ask your REALTOR^® about during the home buying process:

• Short sale: A short sale helps a financially distressed homeowner avoid foreclosure. The home is sold for less than the amount remaining on the mortgage and all the proceeds from the sale go back to the lender. Properties sold with a short sale may need more work than other properties.
• For sale by owner: Homes that are for sale by owner are listed without the help of a REALTOR®. The seller does not have to pay commission to a listing agent.

8 Things To Look For When Buying A House

As we mentioned earlier, it's easy to get caught up in the fun aspects of going to open houses and imagining life in a new house. While it's great to enjoy the process, it's important to ask the right questions about every property you visit. Here are some basic questions that can help you zero in on the right homes.

The Neighborhood

Investigating the neighborhood of a potential home and other aspects about its location is as important as the home itself. Location is everything for being happy in your new home and for making sure it holds or increases in value.

Research all you can about the area, including schools, transportation, distance to the nearest airport, nearby homes, busy roads, job opportunities, flood zones and anything else you and your real estate agent can think of that might impact the home’s value.

The Size Of The House

The size of a house is important. Think about the number of bedrooms, number of bathrooms, storage space and other factors specific to your family’s needs.

The Floor Plan

A floor plan should make the best use of the square footage. Think about how you will use the rooms and whether the layout works.

The Exterior Of The Home

Always review the foundation, the roof, the home’s siding and upkeep of the landscaping. This can save you time and money down the line by making sure everything is in tiptop shape. It can also identify problems to address before closing or move-in.

Natural Light

When it comes to a home's natural light, there is only so much you can change after purchasing it. Improvements like adding windows, skylights or solar tubes can help, but you can't change which way the sun faces.

The Basement And Attic

Look carefully at the basement and attic of a potential home. Are they finished spaces or can they be finished later on? Pay special attention to signs of health hazards, damaged areas or evidence of pests. Consider radon testing and professional insulation inspection as well.

The Garage

If you're considering a home with a garage, be sure to check it out thoroughly. Think about parking space, whether the garage is attached or separate along with how much garage storage you need.

Renovation And Repair Needs

Some homes are solid but need a few renovations to be even better. Consider upgrades like flooring, paint, kitchen remodels, room additions and anything else that could impact your finances. You might also think about other amenities and their systems, from the water heater to the air conditioning unit, that might need replacement.

The Importance Of A Home Inspection

Home buying could be stressful, and you may be wondering if you have the right knowledge and experience to see everything that needs to be seen. That's why a professional home inspection is recommended. Your real estate agent can help you find a good home inspector who will look at every aspect of the home to ensure you’re not missing anything before you buy.

A home inspection is a visual examination of a property you’re considering. This happens once the property is under contract and its status is changed to “pending.” The inspector checks the home's systems and structures, which they summarize in a written report that often includes photos. They highlight problems they noticed, repairs they'd recommend and potential risks.

It’s a very valuable process, but it's not a guarantee that a property is in good condition. An inspection is simply information to help a buyer make a well-informed decision when they are considering moving forward with a home purchase. It’s also important to remember to ask questions when looking at a house, as well. The seller can give you better insights into the home they’ve been living in.

Red Flags That Could Be Deal Breakers

A home inspector should spot potential problems, but an astute home buyer can also spot red flags. Here are a few signs of potential trouble with a home.

HVAC System Problems

As you walk through a home, see if you notice variations in temperature throughout the home. This can indicate problems with the heating, ventilation and air conditioning (HVAC) systems. It can also be a sign of outdated insulation.

Water Stains And Moldy Odors

Moisture can cause a multitude of problems for homeowners. Watch for water stains and moldy odors – these can be signs of water damage and mold.

Do-It-Yourself (DIY) Upgrades

It's great to be handy enough to repair or upgrade your home. But when it's someone else's work? You'll want to be sure they did the job correctly and according to applicable building codes.

Watch for home additions that don't match the architecture and aesthetics of the rest of the home. Exposed wiring and plumbing can also tip you off to DIY work.

Broken Plumbing Fixtures

Flush every toilet and let the water run for a few moments in the showers and sinks. Notice how quickly the water warms up, how easily the sinks drain and whether there are any odd plumbing noises.

Slow drains and tepid water can be signs of problems with the plumbing fixtures.

Short Sales

A short sale can be a good deal, as it helps a homeowner avoid foreclosure. However, if the seller is experiencing financial hardship, they might not be able to afford home repairs. This means their home's problems could become your problems, but the price you pay should reflect those problems.

Certain Types Of Cracks

Many older homes have a few cracks in the walls or ceilings and many of them are benign. Large, jagged cracks radiating diagonally from the corners of door and window frames, though, can be a sign of structural problems. It’s best to have these cracks thoroughly inspected when they are spotted, large or small.

Time On Market

Homes that have been on the market a long time might have some underlying issues. Maybe the owners priced it too high – or it's riddled with red flags. A long time on the market is, by itself, not a reason to cross a home off your list. But it can put savvy home buyers on guard.

Ask Questions Throughout The Process

Best possible advice: Be curious. You should always feel comfortable asking your lender, home inspector and real estate agent any questions that arise. Take notes, ask for more photos or another tour and get clarifications on mortgage terms. You'll feel more informed and at ease every step of the way.

The Bottom Line: What To Look For When Buying A House

Trust your eyes and gut when it comes to looking at your new possible home. Combine that with trusting the expertise from all the professionals you will lean on during the process to ensure you make the right decision.

Ready to start looking for a new home? Start the mortgage approval process today!