The housing market is particularly competitive right now. The number of homes being built and sold is significantly less than the demand for them. Because of this, many prospective home buyers waive purchasing steps that protect them and their new asset. Before closing on a home, it is vital to negotiate closing costs, complete a home inspection, and check the title to ensure everything is in order and set up for your success.
The costs associated with buying a home can quickly add up. Hiring a real estate agent, conducting an inspection, taking out a mortgage will add up quickly. As the purchaser, you reserve the right to negotiate your closing costs. According to Investopedia, you can often get rid of junk fees, which include administrative, application, appraisal, processing, and settlement fees when you stand your ground with your lender. Negotiating your closing costs will help you be more aware of what you are paying for and will often save you money.
As the potential owner, it is wise to hire a qualified third-party inspector to conduct a home inspection. According to J Bixler Inspections, an inspection can take up to several hours to complete. However, taking a look at the structural integrity of the home, inside and out, will save you from unexpected and expensive repairs in the future. If any discrepancies are found, the cost of the home or required maintenance before the purchase can be negotiated. To protect you and their business, mortgage lenders also require an inspection to process your loan.
Once the home has passed a safety inspection, it is important to conduct a title search. According to Architectural Digest, a title company investigates title legitimacy, use restrictions, unpaid taxes on the property, or any other concerns that they may find. Conducting title research will protect you from lapses by previous owners. Checking the title for tax and use information is just as important as checking the structure of the home.
When you have jumped through all the hoops, negotiated closing costs, completed a home inspection, and check the title, you are now ready to sign on the dotted line. Remember that closing on a home can take weeks, don’t rush the process as that will put you at risk for further complications down the road. Waiting to find the right home that checks all the boxes will be well worth it in the end.
Read this next: How to Celebrate Moving Into Your Very First Home