Congratulations! You finally found a house that suits your taste and potential needs. Also, you may probably found a good community, sweet neighborhood, at a reasonable price. Your deal beat out the odds in the competition, and your next step is the contract.
As your home-buying saga continues, you’re now set on owning a new house in just a few weeks! So brace yourself, there will be a lot of happenings that you need to face – some are good, and some are not-so-good.
The not-so-good scenario can range between normal flaws in the process of homeownership, while others are the nightmares of deal-breakers that you can’t totally ignore!
Here are the top deal-breakers and potential house problems that you might possibly encounter, and some tips to ditch them.
Deal-Breaker #1: Your Lender Will Be Creative With Your House Loan
If you received an offer regarding your new home before you were approved for a mortgage, your bank would dig into your finances to figure out how much they are willing to give you. Sometimes, this decision can go well, and also it can go wrong.
If you succeed with an offer to an affordable house with a down payment of 10% or higher, you are probably on the right track to get approved for a 15-year fixed monthly installment of no more than of your 25% take-home salary. Also, another loan option should be ditch right away.
However, there are lots of home-buyers that fall in love with their home of dreams, especially in luxury montana ranches for sale, which sometimes the total house price is the value they can’t afford.
Lenders will do anything that they can to make your impossible ownership to become a reality. Usually, these lenders will adjust rotten financing options such as adjustable-rate installments or sometimes, piggyback riding loans. This reality will shock you!
A simple 30-year fixed-rate monthly installment is a rip-off that can cost you more than tens of thousands of interest to catch you in debt for a couple of decades! Always remember, a lender who will make your dream come true by offering bad mortgage installments should be ditch immediately.
Deal-Breaker #2: Home Inspection Makes a Biggest Revelation About the Problems
Even if you’re good-to-go for a home loan, the bank will need to ensure that the home you have chosen is a good investment. Meaning, they will inspect the house thoroughly by a licensed professional home inspector.
Usually, even new homes will create some issues after the inspection. Minor problems can be ignored or resolved by adjusting the terms of the purchasing contract. However, for some problems like pest infestation or water damage signs can’t be ignored!
Pest damages can cause more than $5 billion on property damage annually; the homeowner’s insurance does not cover the expenses that you need for repairs. Meaning all the costs are from your pocket. In addition to that expenses, you also need to pay professional fees to the exterminator to eradicate the pest infestation.
The only thing that you can do is run away from this house, which can cause you a larger expense in the future. Not only it will save your pocket, but it can give you peace of mind as well. That’s why it’s essential to make a decision wisely, so you won’t have any regrets in the future.