Buying a home is exciting, especially as you picture creating a life in your new house. But purchasing a new home is a major investment that can have legal and financial consequences if you do not prepare properly beforehand.
In 2019 in the U.S., according to data from the National Association of REALTORS®, people purchased 5.34 million existing homes. If you are one of the many interested in making a purchase, taking certain steps can protect your interests before and after closing day.
1. Understand the implications of a purchase offer
It is extremely difficult to get out of a purchase offer. Whenever you submit an offer, remember that this is a legally binding agreement, and you should be willing to purchase the home if the seller accepts your terms, conditions and price.
2. Move forward with a formal inspection
To push through a faster home sale, you may be willing to forgo the formal inspection period. The inspection is your opportunity to determine if the house has any defects that could harm its value, so do not purchase a home without having a professional inspect it first.
3. Purchase title insurance
Title insurance protects you from loss if there are defects with the property’s title. If the title company discovers something wrong with the home’s title, this insurance protects you from losing your home.
You should also read over all purchase and financing documents before signing. Fully understanding the house you buy and the terms of the sale can protect your interests later on.