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Go through the area at different times and days. There may be a business that shuts down for nights and weekends so you might not hear any noise or smell then. Most train tracks are easy to see on mapquest or google.
Find out about schools if you have kids. Is it a good school? Do they need to be bussed far?
I second all the lists made. Also don't just get a pre approval and think you're set financially because they seem to have little to do with what a lender will actually give you in the end so in addition to that, make sure you familiarize yourself with lender guidelines.
Have proper documentation for your finances and be prepared to justify anything they MIGHT question, if you need gift money know what the max is you can get and from who according to your loan type and get it from someone who won't fight providing the required documents from their own accounts.
Get a detailed PITI calculator to get an idea of what a lender may think you can afford (because it may differ from what you KNOW you can afford) and leave yourself enough time in the buying process to make room for other people's negligence slowness or mistakes so you don't find yourself in a last minute pinch. Good luck!
There are a lot of good recommendations on here. I would add that you should never -- ever -- move next to commercial property or anything that's not zoned residential. That quiet little church next door might turn into a Burger King in two years.
Research everything in the area with regard to prices before you even start the process of looking. This is (probably) the biggest purchase of your life, don't let emotion cause you to make a huge financial blunder. I've seen people put more research into the tv they are going to buy or put more effort into saving 20% at the department store or cutting coupons at the grocery store, than they put into one of their largest financial purchases. Research everything, what were prices like before the bubble, how have they fared after the bubble, how much distressed inventory is there, how have prices been trending over the last few years, how do median incomes in the area compare to prices, how do rents compare to prices? It may be a better area to rent or better area to buy, but you should know that going in.
> That quiet little church next door might turn into a Burger King in two years.
It's more than that. That little church may have ambitions to turn into a big church with a revival tent. The college may want more space. The hospital (and hospitals are the worst) may want two or three new buildings. All these things take zoning variances (in most places). But just try to oppose a zoning variance as one person against an entire institution with lawyers and consultants.
Hospitals are the worst because they will bring in people on crutches to testify...don't believe me? I've seen it.
When you get the inspection done, BE THERE! I bought my house from out of state and thats my biggest regret, that I wasnt there for it. Also, have the seller or pay for it yourself, but get a home warranty. Hang out in the area as much as you can to see how the neighborhood really is. I got lucky on that point, nicest town ever, but I realize I was lucky and it could've turned out badly. Even though you'll think the contracts are never ending, READ them all before signing. Dont trust anyone else to tell you what they say.
Dont expect the house to be perfect, few are. I'd go for a better neighborhood than a "perfect" house. You can always fix up the home, cant change where its at. Good luck and happy shopping!
Last edited by breeinmo.; 09-17-2012 at 08:20 PM..
Don't be too focused on finding a house that's absolutely perfect or you may walk away from the experience with no home to show for it. Learn to compromise; you'll be surprised that a lot of properties, though lacking in features that are important to you, actually have a lot of potential to be your "dream home". Also, try to find out how safe the neighborhood is; find out how prevalent crime is in the area and if the HOA is doing anything about it (neighborhood watch, 24/7 security, etc.).
I always walk right up to the door of neighboring houses to talk to neighbors and ask THEM about the area. I know it sounds crazy, but it gives you a good idea who your neighbors are and they will tell you all the dirt about the neighborhood and the street. Best thing I ever did. I also agree with all the other good advice on here and not getting attached to the first home you see that you like. Sometimes it is hard to walk away from what you think is your "dream home" but in the long run you will find the house that is right for you!
If you are buying from another state . . . RENT FIRST ! Cannot be stressed enough.
What are your reasonings behind this?
I understand renting will help you get familiar with a new area but I've noticed in some areas rentals cost more than if you were to buy in the same neighborhood. It's also difficult to find a month to month lease so then you are stuck in a 1 year lease agreement.
Make sure to get a Title Insurance Policy--paid for by the Seller is best (which is standard in Michigan, but not everywhere). It should list all of the liens, easements and encumbrances which either need to be discharged or noted as a exception to the policy. Make sure that you understand the "Exceptions"--what the policy won't cover. Request that the title company provide the documents from the "Exceptions" list so that you can read everything firsthand. Also have a qualified real estate attorney review your contracts, the title policy, all closing documents and the deed.
Big issue: make sure that you understand what the taxes are on the property, and what they will be once you close. To know this, you'll need to know the property tax process and rates for the given area. For example, in Michigan, property taxes can go up dramatically once a property is transferred to a new owner. Property tax procedures vary from state to state, and tax rates vary from community to community.
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