Did you decide against a home inspection or hire your friend’s uncle Billy who dabbles in home repair when he’s not teaching yoga at the local YMCA? Your home has a structural issue that the Seller had hid and now after several months you discover that one side of your home and it’s 3 bedrooms are all tilting.
Never ever, ever skip a home inspection and always hire a skilled home Inspector. It’s important to know what is under, that is visually able to be seen. What’s hidden is what the Inspector reveals. Once any imperfections, minor or major will be made visible, you are then armed with valuable information regarding your home purchase. Now you’re able to make an educated decision on whether or not you’ll continue with the home purchase.
Home appraises for less than your home purchase offer
Understand the options when this is a possibility, particularly when folding closing costs into the home’s sales price. The appraisal comes back lower than the purchase price.
You will have 3 options; pay difference between home’s value (appraisal) and purchase price, Seller reduces sales price or you cancel the home purchase. Your Lender will not lend you money for more than the value of the home, so consider what you’ll do ahead of time when considering what price you’ll offer the home Seller.
You should plan on your Real Estate Agent’s direction on a home purchase price, so you know how your offer price will likely pan out.
You paid lower taxes this past year, affecting your home purchasing power
What, you’re only approved for that amount; yet you make so much more money!
How much do your write off from your taxes each year? When a Lender considers your loan value, they look at your net earnings and not your gross income. If you have a way in twiddling the numbers down so you have to pay less taxes, you’re also twiddling away your home purchasing power. Business expenses incurred reduce your taxable income and hence, you net income. If you’re a business owner, self employed or you utilize a lot of tax saving deductions, you might want to think of lessening those deductions if you have your eyes set on qualifying for a larger home loan.