Buying your first home might be one of the most stress but important purchases that you make. It can be easy to make some routine mistakes during the course of this transaction. To help you avoid these potentially costly errors, it is important to be mindful of these three home buying tips.
Understand The Closing Costs Of The Transaction
It can be easy to only pay attention to the listed price of the home. However, there are numerous other expenses that are involved with these transactions. For example, you will have to pay to have the ownership documents of the property reissued in your name, there will be real estate agent fees as well as taxes. In order to fully understand the price of the property that you are wanting to purchase, you will need to carefully review the contract of sale so that you have a detailed understanding about these expenses. Otherwise, you may find it exceedingly difficult to make effective comparisons between properties.
Hire A Surveyor To Map The Property Boundaries
Before you commit to buying a piece of property, it is essential for you to have a professional surveyor map the property boundaries. Without this step, you may not be sure of the exact property boundaries, and this can have a profound impact on your future use of the land. A common example of this would be the installation of a fence or the addition of another structure. It can be easy to violate property boundaries during these projects, which can result in you paying for any damages or changes that were done to the neighboring property.
Buy A Title Insurance Policy
Many first-time buyers are unaware of the consequences of buying a piece of property that has a lien against it. When a lien is present, you will be forced to pay the debt of the previous owner to retain the property. This occurs when the property was listed as collateral for financing that defaulted. Failure to pay these debts can result in the property being foreclosed to settle these debts. You can protect yourself against this risk by investing in title insurance. These policies ensure that the there are no other claims of ownership over the property. In the event that a lien is discovered, the insurance company will be liable for resolving the debt. These policies may seem somewhat expensive, but these fees are minor when compared to the expenses that they can help you avoid.