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50 Important Things To Do Before Buying A House

Shannon December 4, 2018

Gather your bank statements before you apply to get a mortgage. Credit: Pexels

36. Prepare Your Bank Statements

When you go to apply for a mortgage, the lender will want to see at least three months of bank statements as proof of income. In preparation for this, you should start to “clean up” your bank account, which may mean cutting down on your normal embarrassing purchases, because they will be able to see every transaction you make.

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If you received a large financial gift, you may need to get it on paper. Credit: Pixabay

37. Document Large Financial Gifts

A lot of newlywed couples will get a gift of money from their parents after they tie the knot, and for some, it is a significant amount of money. If you deposit this into your bank account, your lender may be suspicious that you may have actually taken out a loan from your parents, and that you will be bogged down with repaying multiple parties. Ask the person who gave you this gift to sign on a piece of paper that they gave that money to you as a present, and not a loan.

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You need do get your tax paperwork together before applying for a mortgage. Credit: Pixabay

38. Prepare Your Taxes

Banks and mortgage companies will want to see last year’s taxes, so make sure you bring a copy with you. If there is something concerning you about your taxes, feel free to visit an accountant, because the IRS allows you to amend your taxes for up to 3 years. If you are self-employed, the lender will want to see your tax statements from the past three years, and they will average them all together.

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You need to budget for last-minute expenses before you buy your home. Credit: Pixabay

39. Plan For Unexpected Costs

When you are buying a house, it is almost guaranteed that Murphy’s Law will come into play. (“If it can go wrong, it will.”) Try to set aside a couple thousand dollars for unexpected costs, so that you are prepared to pay for things that come up, instead of borrowing more money.

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Keep the future resale of your house in mind before making drastic changes. Credit: Pixabay

40. Keep Future Resale In Mind

Even if you are looking to buy a “forever home”, you may want to downsize after retirement, or maybe you will get a new job in another state. This is especially important when you are doing rehab projects. For example, maybe you want an all-pink house, but all future buyers are going to be completely thrown off.

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Check the house water pressure before you buy. Credit: Pixabay

41. Check the Water Pressure

When you are touring a house, flush the toilets and check the water pressure in the sink and shower. If it seems weak, it may be an indication that the house needs a new water pump, or there could be an expensive plumbing issue.

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During your meeting with the real estate agent, ask for any records of issues. Credit: Pixabay

42. Ask For Disclosure On Potential Issues

Depending on where you live, your real estate agent may not be obligated to tell you when something has gone wrong with the house. Sometimes, a house is listed “As-Is” in order to protect a seller from being liable for any major problems with the property. Ask the real estate agent to be as honest as possible, and if they have any paperwork available. If at all possible, do some research on that address online, too.

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Even if you don’t have kids yet, you should still consider if the house are buying is your “forever home”. Credit: Pixabay

43. Think About Your Future Needs

Plenty of people buy a “starter home” before they move on to upgrade to a “forever home”, but in some cases, it is better to try to think into the future and buy the best house right away. Even if a house is perfect for what you need right now, try to imagine yourself 5, 10, or 20 years from now. If you have kids someday, is the house going to feel too small? You will save yourself a lot of time and effort from moving place to place by thinking into the future.

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44. Don’t Obsess Over Just One Feature In a Home

If you are very insistent on having one or two particular things in your future house, you are going to have a very hard time finding something that fits your every single one of your needs. For example, if you must have a wrap-around porch or a swimming pool, it could limit the possibilities in your home-buying search. Try to be open-minded, and remember that you can always add upgrades later after you settle down.

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You don’t want someone to break their arm when they visit your house. Credit: Pixabay

45. Look Out For Potential Liabilities

When you move into a house, there could be things about the property that may end up with someone getting sued or seriously injured. For example, are there dead trees that can possibly fall on your neighbor’s roof? Is there a rusty swing set in the backyard? Is the floor about to cave in? Calculate the cost of getting these things fixed, because they need to be dealt with almost immediately to prevent something terrible from happening.

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If you have health issues, it is essential to live close to a doctor. Credit: Pixabay

46. Check The Proximity to Health Care

Even if you are perfectly healthy, you never know if you will get sick or injured. Check for doctor’s offices that accept your insurance provider where you live, and make a test drive to the nearest hospital, so that you know where to go in case of emergency. If you or a family member has a pre-existing health condition, proximity to good health care can make a huge difference.

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Be sure to research your options for homeowners insurance online. Credit: Pixabay

47. Estimate The Cost Of Your Homeowner’s Insurance

It is a very good idea to get homeowners insurance when you buy a house, but make sure to ask the right questions about the policy with your insurance agent. For example, if a house is located in a floodplain, the insurance company might refuse to give you flood insurance, because they do not want to give you a payout.

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Scope out the neighbors before you move into a new house. Credit: Pexels

48. Scope Out the Neighbors

Normally, it’s not polite to stare, but you should try to pay attention to the type of people who live next door or on the same street. Your interaction with your neighbors makes a huge difference in the comfort and happiness of your new house. Some obvious red flags to watch out for are lawns that have not been cut in ages, old broken-down cars sitting in the yard, or any signs of anything dangerous like gang activity.

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Keep your pets in mind when looking for a new home. Credit: Pixabay

49. Don’t Forget Your Pets

If you have dogs or cats, this house will be their new home, too! Keep them in mind when you are looking at a potential neighborhood to live in. How easy or difficult would it be to walk your dog in the morning? If you don’t have a backyard, is there a dog park nearby for them to run around? Depending on how seriously you take your furry friend’s well-being, it may narrow down the options of where you can live.

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When you are a home owner, you have to practically be a super hero to handle everything. Credit: Pixabay

50. Be Prepared For Anything

Before you jump into the huge responsibility of buying a house, ask yourself if you are truly prepared for the worst case scenario. Do you have enough money saved to continue paying the mortgage if you lose your job for a couple months, or you need to have a surgery? What if you get a divorce? These are not nice things to think about, but it is better to have a game plan than to be caught off-guard. Too many people lost their homes in the 2008 recession because they were not prepared for the worst. It’s not good to dwell on the dreaded “what if”, but by preparing for anything, you can stay calm and enjoy your new home to the very fullest. Good luck!

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