What You Should Vet When Buying a Home

The purchase of a home is one of the largest purchases one will make in their lifetime making it all the more important to know what to vet when buying a home

Let me start by saying, when my husband and I bought our first home together, we completely went about it the wrong way. Fortunately, we still lucked out and had an amazing experience, but I’ve known others to not be so lucky, which is why it is important to be educated on important factors when buying your first home. These people can make or break your experience and knowing how to vet them can save you headaches and money down the road.

Below is what to vet when buying a home

Realtor

When we started looking for a home, we went into it blindly. We saw a home, contacted the listed agent and started working with her immediately to find our first home together.

I would never recommend this to anyone I know. There are a series of vetting that should take place with not only selecting your home but selecting the people you will be working with to help you close on that home.

Our realtor ended up being amazing. She not only helped us purchase our first home, but she also helped us with our investment property. She owns rental properties and has an architecture background that gives her deference in her industry. To top all of this off she is an experienced and trustworthy realtor.

All these qualities make for a great home buying experience. When choosing your realtor, get references from family and friends. Make sure to also google each potential realtor and read their reviews. It is important to confirm that your realtor is licensed and can provide you with their sales record to see if they would be a good fit for your needs.

Don’t be afraid to ask your realtor about their expertise, length of time in the industry and experience with home buyers.

Inspector

Your home inspector can save you from or lead you into buying a money pit. An inspector’s job is to highlight issues with a property and provide you an opportunity to request improvements before closing. Their job entails determining the integrity of a home. A good one will perform a thorough inspection and provide a written report.

This is a job you don’t want rushed. It’s also important your inspector doesn’t have any conflicts of interests or hidden motives. Many realtors will suggest or recommend an inspector and or list of inspectors which should be taken with caution.

Because realtors interest surround closing the deal, they may choose a home inspector that won’t highlight or report conditions that will kill their deal.

Get referrals from other home buyers that had an inspector that reported problems with properties they have wanted. Also be sure to check reviews of others experience. Lastly, verify that the inspector is certified by National Association of Certified Home Inspectors (NACHI) and/or the National Society of Home Inspectors (NSHI).

Lender/Broker

You have two choices when it comes to financing your home. You can go with a bank or a mortgage broker. A bank lender is a financial institution that makes loans directly to you while a broker works with lenders to identify a good match for you, the buyer.

The main difference is that a mortgage broker doesn’t loan you money. They match borrowers with lenders who will provide them competitive rates and terms based on their financial circumstances. One may be better for you than the other depending on your needs and circumstance.

Mortgage Lender Pros and Cons

Pros:

You can apply directly with the bank to obtain your loan, saving you time
There isn’t a fee associated with obtaining the loan
You may be able to get a better rate if you have a relationship with the lender

Cons

If you want multiple rate quotes you will have to contact each lender individually
You may not have access to some lenders that only have a relationship with brokers

Mortgage broker Pro’s and Cons

Pros:

Mortgage brokers work have relationships with multiple lenders allowing you to be connected to lenders you otherwise wouldn’t know about
Their connection to multiple lenders makes it easy to compare loan options
They can help you find competitive rates and terms

Cons

There is sometimes a broker fee associated with connecting you with a lender
Due to their relationship and sometimes financial incentives from lenders they may have biases that pushes them to recommend certain lenders

It is important to get quotes from both sources and compare offers. Some processes and options may save you money while others may save you time. They key is to shop for rates and make an educated decision.

Share your thoughts on what to vet when buying a home

RELATED POST: Money Saving Tips for Spenders