Whether you are just considering setting out into the world of new homeownership or you are almost ready to make the leap and start looking at homes, purchasing a home is not a simple process. In fact, purchasing property can be incredibly nuanced, with many moving pieces, and so it is often easy to overlook some very beneficial choices early on. Before you start the process of purchasing a home, do not forget the following considerations that can make a big difference in the security of your home (and your investment in it) going forward.
Get Preapproved Before You Start Your Search
As much as you may be excited to bolt directly out into the housing market and see what is available, it is important that you prepare first. One such way to protect yourself early on and equip yourself with the tools you will need is to get preapproved for a mortgage. If you were to find a home that you really loved but did not have preapproval, you would need to spend days or even weeks securing documentation from your bank proving that you are able to afford that home. In the meantime, of course, that property would likely already be sold. Preapproval serves a number of purposes, though most people associate it with the ability to immediately demonstrate to a seller that you are a bona fide candidate as a buyer. However, preapproval can also help you in your own financial planning by showing you how much of a mortgage you can qualify for and what it would cost you.
Don’t Skimp On The Inspection
If you have found a home that speaks to you, you may be worried that if you do not close immediately, you will lose your chance. However, is it vital that you are thorough when picking a property, and that it includes the home inspection. Do not skimp in this area; failure to do an adequate home inspection using a skilled third party could leave you on the hook with a home that has catastrophic (and expensive) problems such as asbestos in the attic or a cracked foundation that are difficult and costly to repair. A few hundred dollars on a home inspection now could save you thousands later and help you make an informed choice.
Consider Homeowners Insurance Before You Close
Along the same lines as that home inspection, do not forget to secure a homeowner’s insurance policy before you close. As you are working with your mortgage paperwork and signing everything that needs to be signed, it can be easy to forget to do your due diligence on a homeowner’s insurance policy. This type of insurance can protect your investment, and some lenders even require it as part of closing.
Don’t Forget The (Enhanced) Title Insurance Policy
One of the easiest things to forget when you are in the chaotic process of closing on a home is to acquire title insurance. It may not seem important, since part of the closing process includes a cursory review of a property’s title history, but title insurance can actually protect you from some of the most costly and surprising upsets that can happen to your home.
Title insurance exists in order to offer protection against issues with a property’s title. This could include anything from liens on the property that you did not know about to a previously unknown heir showing up and placing a claim on the property—meaning that you must give the house over to them, losing your entire investment. Title insurance defends against these circumstances, with enhanced policies providing even more protection. An additional benefit of title insurance is that unlike a homeowner’s insurance policy or other types of insurance that are paid monthly, title insurance is paid as a lump sum before closing, after which you are permanently protected. This makes it a worthwhile additional expense before you close so that you can have peace of mind that your investment is safeguarded.
Trust The Real Estate Professionals To Answer Your Questions
If you are moving into the home-buying phase of your life plans, you already have a lot to think about, and navigating what constitutes good title insurance is an added stressor that you do not need to deal with right now. Trust the experts at Mathis Title Company to help you decide which type of title insurance is right for you and how much protection you need. Reach out to schedule an appointment to get the process started or simply to ask a few questions about how title insurance works and whether you need it. We are happy to help.