If you are well-prepared, the probability of a smooth and hassle-free process is high. Today, I have outlined several things you should consider when you've made up your mind to buy a house:
1. Budget and Current Financial Situation
Determine your budget based on your financial situation and confirm its feasibility through pre-approval. Also, make sure to check the amount of the down payment and closing costs in advance to avoid surprises later on.
2. Location
Deciding where to purchase a house is crucial. Investigate the distance from places you frequently visit, such as schools, workplaces, and stores. Also, look into the quality of the neighborhood and the school district.
3. Property Type
It's not always best to follow the crowd. Consider your current lifestyle and how it might change in the next 7 to 10 years. Choose between a single-family home, a condominium, or a townhouse, and think about specific features like the number of bedrooms, bathrooms, and garage spaces.
4. Property History
If you've found a house, it's a good idea to check its transaction history. Some houses change owners frequently in a short period. In such cases, be thorough in your inspection and carefully assess the condition of the neighbors.
5. Permits and Zoning
Check whether any part of the house violates zoning regulations or is being used illegally. For instance, some people start real estate investments by purchasing multi-units in downtown Chicago using FHA loans. In such cases, some units may be illegal in terms of taxation. Also, confirm if there are any pending rezoning efforts in the area.
6. Surrounding Environment
Make sure there are no undesirable facilities or flood zones near the house.
7. Resale Value
I always emphasize that real estate is one of life's largest investments. Therefore, analyze in advance whether the property's value will increase and by how much when you decide to sell it after 7 to 10 years.
8. Future Development
I recommend checking if there is any new development around the house you like. The value of your home might increase or decrease rapidly due to these developments. Make sure to investigate this aspect as well.
Today, I've introduced several things you should check before buying a house. If you have any questions, feel free to reach out anytime. I look forward to providing you with more valuable information in the future.
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