What do you need to consider when closing on a home?

Buying your first home can be daunting. It is probably the biggest purchase you have ever made, and you are committing to pay a significant percentage of your wages for the next quarter of a century.

The most important thing is to ensure that the owner has the right to sell the property and that you will not face problems from others who claim ownership later. Title issues can happen for several reasons. One is because the current or previous one owes money. Builders who work on a house can place a lien on the property, meaning that the owner cannot sell it without paying the debt. Another reason for title issues is family disputes over inheritance. If you discover problems, you might still be able to proceed with the purchase if you can get the issues resolved first.

Understand what you are buying

Saving money by getting a cheap survey could cost you a lot more in the long run. Check what the survey covers to ensure you can buy with confidence. Most houses have faults. The important thing is to understand the price of fixing them and what will happen if you do not. Some issues are cosmetic, but others could injure you or cause the house to depreciate if not remedied.

Understand the long term cost of the property

When you see a house on the market for $250,000, remember it will cost you much more than that. Take time to work out the true cost, including mortgage fees and interest, transaction fees, insurance, upkeep and bills.

Getting help when buying real estate reduces the chance of errors and increases the likelihood you end up with somewhere you call home for years to come.