3 Key Things to Know Before Buying a House

Buying a home is a huge deal. It is one of the biggest decisions that you will make in your lifetime. The problem is that there’s so much information to understand about the home-buying process that things can quickly become overwhelming. That is why having a crash course before starting your search is so important. If you don’t know what the FHA is, what 203k loans are, or what home inspectors do, then you came to the right place.

FHA Guidelines

To begin, the FHA stands for the Federal Housing Administration. It is a United States government agency. A fun fact about it is that is was founded by President Franklin Delano Roosevelt and was created in part by the National Housing Act.

So what exactly does the FHA do? They set standards for construction, for one thing. They also insure loans made by banks or private lenders for home construction. FHA guidelines are put into place to help make the process as easy as pie. The FHA guidelines were carefully thought-out by nationally certified master inspectors all over the country.

Home Inspections

When buying a home, you should always have a proper home inspection performed. Around 90% of U.S. homeowners surveyed believe a home inspection is a necessity, with 64% of homeowners saying they saved a lot of money as a result of their home inspection in the long run. Who doesn’t love to save money? These home inspections can catch any issues in the home before you sign that dotted line and those issues become your financial responsibility. In addition, they’ll keep you from purchasing a home with hidden issues that you can’t realistically afford to fix.

Loans

Having a loan of some kind is often required to buy a home. Not many people have $200,000 at their immedioate disposal. While there are many different types of home loans, a 203k loan is a great option to look into. This loan is backed by the federal government and is specifically geared towards buyers who want to fix up older or damaged homes to restore these properties. This can be a great way to get a relatively customized home at a lower price and with more preferable financing. That said, you should always compare interest rates and read the fine print when applying and agreeing to any loan amount.

In closing, buying a house is a huge decision that is going to take some time and research. Don’t rush into it and overlook things. Every step of the way is there for a reason. Of course, this process can be incredibly exciting and fulfilling — especially if you have the right tools at your disposal.