6 Tips for Buying a House in the New Year

Can’t wait to get the keys to your new home in the New Year but not sure where to start? Home buying tips can be very helpful to get prepared for this big life change. At Bay National Title Company, we help clients every day close on their dream homes and get those precious keys in hand. We’ve curated some of the most important home buying tips and tricks to give you the confidence you need during this exciting and sometimes nerve-wracking time. 

 

Top Tips to Buying a New Home

1. Make a List of “Must-Haves” and “Willing- to-Sacrifice”

Our homes are precious spaces, and we want to be comfortable, safe, and be able to do what we want to do. Align your “must-haves” and “willing to sacrifice” with your budget. 

• Do you have a large family and need a big kitchen? 
• Are you willing to give up an expansive master bath for a fireplace in the living room? 

These two lists will save you a lot of time during the home buying process and help you to be realistic about your expectations within your budget. 

 

2. Gather Your Documentation Ahead of Time

It’s easy to get caught up in all the excitement when you are touring through beautiful homes trying to make a decision. But when you have made the decision, you may need to act fast — particularly if you are in a very competitive market. 

Gathering documentation is one of the most valuable of the home buying tips and tricks because preparedness is key to being able to get the home you really want.

You’ll need to gather all of your documents you’ll need to apply for a mortgage, including: 

• income statements
• bank statements 

Organize them so they are ready when you need them. Get pre-approval for the mortgage loan if possible. Doing so will help to shorten the time it takes to get to the closing day.

 

3. Contact a Title Company as Soon as Possible

Homeownership is wonderful. Having a clear title and being protected long term as a homeowner is equally important. Contacting a title company isn’t one of those home buying tips that not everyone thinks about when they are thinking of purchasing their dream home. However, contacting one as soon as possible is crucial to a successful, efficient, and better closing experience. 

A title company will perform a thorough title search on the property to look for anything that could interfere with your rights as the homeowner. From unpaid tax liens to errors in previous records associated with the home, it is crucial to discover issues as soon as possible so they can be resolved before the closing day. The last thing potential new homeowners want is to be surprised by a legal judgment associated with the property, a previously undisclosed loan, or non-monetary encumbrance on closing day. 

 

4. Get Title Insurance

When buying a new home, you always want to protect your rights to the property and your financial security. Title insurance will not only protect you throughout the closing process — it will also safeguard you for the entire length of time you own the home.  

Two policies are needed: a Lender’s Policy that protects the financial institution and the Owner Policy that protects your legal rights to the property and your financial future. Your Owner Policy protects you through the process of closing and would cover costs associated with issues that may come up months or years down the line, such as a previously unknown heir. 

Title insurance is different from other types of insurance in that there is just a one-time fee. This is a minimal cost and is much less than the expenses that can accumulate if there is an issue with property rights or liens after closing day.  

5. Be Open to Multiple Areas

The New Year will be a great time to buy a home. Mortgage rates are expected to remain reasonable, and single-family home construction is expected to increase. Also, Millennials are going to be very active in the housing market. Taking all of this into consideration, there are going to be a lot of competitive markets out there. 

Another one of the best tips for buying a new house is to be flexible about the areas where you are willing to relocate. You may be able to get more for your money and still have a reasonable commute to work and good schools for your kids. 

 

6. Work With an Experienced Team

When you are making one of the most significant purchases of your lifetime, it is crucial to work with an experienced team. From real estate agents to title companies, expertise matters. Doing so will reduce your stress and give you the confidence you need that “all the I’s are dotted, and the T’s are crossed.” You will get comprehensive, quality services that are streamlined and efficient, and people who listen to your needs and maintain clear communication channels. 

An experienced team will handle any issues that may arise in the real estate transaction with expertise and advise potential homeowners on the next steps. Just like with any other professional services such as healthcare, you want to make sure you get quality services and that the processes and documentation in buying your new home are performed correctly and efficiently to avoid unnecessary delays in closing. 

 

Contact Bay National Title Company for a Better Closing Experience

Here at Bay National Title Company, we give homebuyers and real estate industry professionals the information they need —from home buying tips for the New Year to detailed information about closing on a home.

We take the time to explain the choices regarding the decisions you need to make when it comes to closing on a home. We’re also dedicated to delivering a better closing experience— providing unsurpassed customer care with unmatched accuracy and security that offers the peace of mind and confidence you need.