Making the decision to invest in real estate can be an important purchase for anyone to make, but it is an unfortunate fact that many first-time buyers can feel overwhelmed by this process. To help individuals avoid making some common oversights, it is important to consider the following two tips before you start shopping for your first real estate purchase.
Meet With The Bank Before You Start Trying To Tour Homes
Many first-time buyers make the assumption that the first step in buying real estate is choosing a property that you want to buy. However, this is not actually the case because you should consider meeting with your banking representative first. These individuals will be able to explain your financing options and what type of loans you might be able to qualify to receive. Furthermore, they may be able to provide you with a letter proving you are pre-qualified for a mortgage.
This step is important due to the fact that many home sellers will insist on seeing proof that the buyer can actually purchase the house. In particular, this is a common practice for those that are selling particularly expensive or in-demand properties. While this may inconvenience you, it ensures that the seller is only dealing with serious buyers.
Understand The Dangers Of Buying Property With A Contested Title
It is common for first-time buyers to assume that their part in the transaction ends when the exchange money for the title. While this is true in most cases, there can be instances where the title to the property is contested. This can happen when the seller had an undisclosed lien against the property or if they were involved in a legal dispute over the rights to the real estate. If you make the mistake of purchasing property that is involved in this type of conflict, you may find that you are forced to forfeit ownership.
To protect yourself from this outcome, you should make sure to always purchase title insurance before buying a home. This type of insurance is designed to protect you from the financial repercussions of these events.
Purchasing real estate can be a stressful experience for a number of reasons. In addition to the significant costs of these purchases, you will also need to address a number of details to ensure that your buying experience is as enjoyable and risk-free as possible. Knowing the value of receiving a letter of pre-qualification from your bank as well as the need to buy title insurance will help you to have the smoothest buying experience possible. Contact a professional like Aaron Lillie - Real Estate Sales Representative for more information.