Before you start looking for houses on sale, check these points:
- Make sure you can maintain visa status for at least couple of years. DO NOT BUY IF YOU ARE NOT CONFIDENT.
- Limit your budget to what you can afford to pay off in case of emergency like visa issues. I personally limited myself to the amount what I can arrange in case of emergency.
- Look for properties which can be easily rented in case you go back to home country. This is very important.
- Decide what type of house you want / can afford
- Condo: Less area, less maintenance, high HOA, smaller cost, ideal for small family or couples
- Town house: Ideal for 2+2 family, moderate space and maintenance since you own from land to roof, less HOA
- Family house: Area is no issue, ideal for any family size, no HOA, high maintenance cost or high effort if you do maintenance yourself, more cost
- Have a check on your finance: Monthly expense = mortgage (principal + interest) + property tax + insurance + HOA + unexpected maintenance
- If you are looking for alternative to rental house then make sure monthly expense wont go too beyond current rent
- if you are looking for investment property then monthly expense doesn’t cut your monthly salary by more than 30%
- Down payment shouldn’t cut your savings too much. You need to have some liquid money for unexpected events.
- Check your credit score. Make efforts to increase if it is low.
- Get pre approved letter from your fav financial institute. It gives you idea of the loan amount you will get, so you know the limit.
- If you have no experience in this area then you should think about having real estate agent.
- Know the state and local taxes
- Know the areas around ( schools rating, crime rate, grocery stores, commute to work, resale value, rental possibilities in future etc)
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Once you are ready to search,
- Write down what you want. (Must have and Should have list) Example below :-
- MUST: Condo with at least 2 bedrooms
- MUST: Construction should be max 25 yrs old
- Ok with any appliances
- Ok with any floor
- Should have reserved parking
- Should have gated community
- Don’t rush but don’t wait too much for good properties (which fall under your criteria)
- Don’t hesitate to go and see the house in person if you liked it online.
- Don’t commit anything to seller before house inspection and loan approval
- Take your friend or anyone experienced in home ownership. They will help you see the corners.
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Once you know the property:
- Think about having real estate agent
- Get house inspection done. Choose independent contractor after your research even if your agent recommends someone..
- Ask for Home warranty from seller
- Get the flaws corrected before you complete the process
- Check if prior property taxes are paid by seller
- Ask if seller can pay 50% of closing cost
- Check if bank can give you some grant towards closing cost..