Buying a home doesn’t have to be stressful. With a little preparation and planning, you can quickly find the home that’s right for you and greatly reduce the likelihood of any roadblocks to closing.
Get Pre-Qualified with a Lender
Understand Additional Fees
Understand Insurance Requirements
Understand Issues Surrounding Short Sale or Foreclosure
Know the Neighborhood
1. Get Pre-Qualified with a Lender
- Pre-qualified buyers are in a stronger position to negotiate, as financing is not a contingency
- In multiple offer situations, sellers are often more likely to choose an offer in which financing is already secured
- Knowing how much money you have to spend on your home can help you narrow your search
- You’ll have one less thing to worry about as you prepare for your move
2. Know and Understand what Additional Fees (if any) may come with your Home Purchase
- A condominium requires monthly fees be paid to the association, and special assessments for needed repairs or unforeseen expenses can be levied at any time
- Many communities require you to a member of the homeowner’s association, which requires a fee (usually annually) to cover expenses related to upkeep around the community
- Some newer communities have Community Development District (CDD) fees that cover amenities/improvements in the community; the fees go to repaying a loan from the county to the developer and usually appear on your tax bill
- If your home is in a golf course community, you may also be required to obtain a club membership, sometimes including minimums for food/beverage services
3. Know the Insurance Requirements for Your Home
- If your home is in a flood zone, especially a flood zone A, your lender may require that you obtain flood insurance in addition to your regular homeowner’s policy
- Your home’s proximity to a fire station can have an impact on the cost of your insurance policy
- If you’ll be keeping anything of extraordinary value in your home, e.g., fine art, jewelry, wine, etc., you may want to discuss additional coverage with your agent
- Be sure to ask your agent about any special discounts available on your home, e.g., an alarm system, etc.
4. If Considering a Short Sale or Foreclosure, Understand the Issues Upfront
- If you have a deadline for being in your home (for children to start school, for example), then the extended timeline and uncertainty of a short sale or foreclosed home may not be right for you
- Short sales and foreclosures are generally sold “as is”, meaning you are on the hook for any required repairs or outstanding fees (HOA, condo association, etc.)
- Be prepared to work on the bank’s timeline and to be treated like a number
- Lastly, see my primer on buying a short sale (will link to some of your other content on short sales)
5. Do Your Research and Know the Neighborhood
- Research the neighborhoods you may be interested in to determine distance from your workplace, what amenities are available and how close you’ll be to shopping, services, schools, etc.
- If you have questions about zoning or what’s being built around your neighborhood of choice, check the appropriate county websites (ask me for a list)
- Get a copy of any covenants and restrictions that are in place for your targeted communities
- View a list of popular communities here in northeast Florida
