5 Things to Research Before Buying a House
When you buy a home, it’s important to have a clear idea of what you’re looking for. The market can seem overwhelming. Once you dive in and start looking, it’s easy to be swayed by something appealing and follow your heart — and sometimes overlook things you might regret later.
Take time to think beforehand and decide what features are non-negotiable, what would be nice, and what you don’t want as well. That allows you to narrow down your search and focus on properties where you can be happy long-term.
Knowing what you want also helps your real estate agent help you — finding properties you’ll like.
This time spent preparing pays off.
Here are five key things to research before buying a house.
5 Things to Consider When Buying a House
1. Location
The location of your home significantly impacts your daily life, affecting commute times, accessibility to essential services, and the overall feel of the community.
Begin by considering the proximity to your workplace, schools, public transportation, and other frequently visited places such as grocery stores, parks, and medical facilities.
The next consideration is more of an art than a science: The neighborhood’s character should align with your lifestyle preferences. Take into account factors like safety, noise levels, and the availability of recreational activities.
Web Resources
Lots of great resources exist online for checking out neighborhoods you are considering. No computer-generated data will compare to talking with a resident, but these online tools can help you develop a feel for areas of interest and narrow down your search.
- AreaVibes.com will do lots of data crunching and give you a “livability score” – with letter grades for each component from crime to amenities to cost of living.
- You can find detailed statistics on locations you’re considering at Moving.com. Choose the “Compare Cities” tab to compare two cities against each other.
- Research nearby crime statistics at myLocalcrime.com and view a sex offender map at FamilyWatchdog.us.
- Read school ratings and reviews at GreatSchools.org.
- If you don’t want to rely on a car, check out how easy it is to get around by walking or biking and by public transportation at WalkScore.com.
In-Person Visit
If you’re nearby, nothing beats visiting in person.
Drive through different neighborhoods to gain a feel for the vibe, or even park your car and take a walk. Look for the schools, grocery stores, and nearby health care centers. Explore local community amenities such as restaurants, shops, and entertainment options.
If you’re close to making a purchase, and you see a neighbor outside caring for their lawn, don’t be afraid to greet them. If you feel comfortable striking up a conversation, that could be your chance to ask any specific questions you have after your research, such as, “What’s your favorite thing about this neighborhood?” or “Will my child find other kids to play with here?”
If you know the locations of future work or school sites, drive from a potential neighborhood at rush hour to see the traffic situation.
2. Needs and wants
It’s important to differentiate between needs and wants to help guide your home search.
Start by listing out the must-have elements that are crucial for your day-to-day living—these might include the number of bedrooms and bathrooms, proximity to work or schools, or accessibility features for family members with mobility issues. Needs are non-negotiable factors that will impact your quality of life and functionality within the home.
Then consider wants — desirable but not essential features. These can range from aesthetic preferences like hardwood flooring, a modern kitchen, or a spacious backyard, to lifestyle-enhancing amenities like a swimming pool or a home office. While wants can enhance your living experience, they should be flexible to accommodate budget and availability.
Here are some important questions to ask yourself:
- How many bedrooms and bathrooms do you need?
- How much square footage do you want?
- Who will need office/study space in the house? What do you want that space to look like?
- Will you need to drive to work? How far are you willing to drive?
- How important is a great school district?
- Are walkability and public transportation important for your family?
- How important is proximity to a hospital?
- How important is outdoor space for playing and socializing?
- Are you looking for child-friendly considerations? (e.g., other children in the neighborhood, sidewalks for riding bikes, a fenced yard)
- Do you have strong feelings about having a homeowners association? (No homeowners association means lower costs and more freedom; on the other hand, an HOA may mean amenities like a pool and private snow removal services, plus your neighbors can’t keep three broken-down cars on their lawn.)
- Are you comfortable looking at fixer-uppers that will mean more work but potentially more savings, or do you want a home that is move-in ready?
Have everyone in the family make a list of qualities that are important to them. Then go over the lists together and choose on your top non-negotiables – the needs. Put the other nice to haves on a separate list of wants to look for when buying your home.
The Mundane Necessities
One more note: Keep in mind that while a pool is fun, your home’s HVAC system and water heater have a bigger impact on your day to day life. If major systems need replacing, these can be major renovations. When you’re looking at a particular home, find out the roof’s age as well as the approximate installation date of other major systems such as the heating and cooling systems and the water heater.
All systems need updating and replacing eventually. When you receive a home inspection report, however, look for major issues and red flags as well as predicted timelines for costly repairs. Surprises in this realm are not fun and can take away from your enjoyment of the home.
3. Financing options
When you’re ready to seriously begin looking for a home, it’s important to secure financing. Choose a reputable financier and find out what options they have available for you. If you are a first-time buyer, you may qualify for government-backed programs with more flexible requirements for qualification and down payment.
Also think about the financing term you’re looking for. While a 30-year term is common and offers lower monthly payments, a 15-year term has the advantage of shorter payback periods and lower costs over the life of the financing.
How much can you pull together for a down payment and closing costs? If you can put 20 percent down, that may eliminate the need for private mortgage insurance (PMI), but you don’t want to deplete your savings entirely. Leave some aside for an emergency fund.
It’s important to make sure that your choice of financing aligns with your values. Since you’re reading this blog post, Islamic financing is something you likely are already interested in. Here’s an overview of Guidance Residential’s trusted Declining Balance Co-Ownership Program and how it compares to conventional mortgages. If you’re the type who likes all the details, read more about all our Islamic home finance options.
4. Pre-approval and budget
Before you start house hunting, you’ll most likely need to get pre-approval for financing. This step provides several advantages that can empower you as a buyer.
Pre-approval involves a lender reviewing your financial situation, including income, debts, and credit history to determine the amount and terms of financing they are willing to offer you.
Having a pre-approval letter demonstrates to your real estate agent and sellers alike that you are a serious and qualified buyer. Agents may not show you homes until you have this letter. Sellers are also more likely to consider and potentially accept offers from pre-approved buyers, knowing that the financing is already in place.
Pre-approval also helps you establish a clear budget for your home search. By knowing how much you can borrow, you can focus your search on properties within your price range, saving time and avoiding the disappointment of falling in love with a home that is financially out of reach. Before you begin house hunting, use this information to decide a reasonable range for your home’s purchase price — and stick with it.
To obtain pre-approval, you will need to provide documentation to the financier, such as proof of income, employment verification, credit reports, and statements of assets and liabilities. After reviewing the documentation, the financier will issue a pre-approval letter, often specifying the amount, type of financing, and terms for which you qualify.
As an added bonus, pre-approval can highlight any financial issues that need to be addressed before making an offer on a home. For instance, if your credit score is lower than required or if there are discrepancies in your financial records, getting pre-approved will give you the opportunity to resolve these issues early. This proactive approach can prevent delays or complications during the final stages of the home-buying process.
If you’re just looking for a quick estimate of how much house you can afford, you can get pre-qualified online in fewer than 10 minutes with Guidance Residential. When you’re ready to get pre-approved, you can also do this online at your convenience. Your Account Executive is available to help you with any questions along the way.
With pre-approval complete, you’ll be ready to move quickly when you find the right home.
5. Real estate agents
The right real estate agent can significantly enhance your experience and ensure a successful transaction. A good real estate agent acts not only as your guide to provide expert advice, but also as a skilled advocate and negotiator on your behalf.
To begin with, ask for recommendations from friends, family, and colleagues who have recently purchased homes. Personal referrals can be a valuable source of honest feedback about an agent’s performance, communication style, and professionalism. Additionally, online reviews and ratings on platforms such as Zillow or Realtor.com can provide insight into an agent’s reputation and track record.
Don’t feel too shy to ask an agent about their experience in the local market, their approach to buying and selling homes, and how they plan to meet your specific needs. An experienced agent will have a thorough understanding of market trends, pricing, property taxes, and the nuances of different neighborhoods. This knowledge is invaluable in helping you find a home that matches your criteria and budget.
Communication is key when working with a real estate agent. Your agent will communicate not only with you but also with other professionals as they arrange for necessities like the home inspection. Ensure that the agent you choose is responsive and available to address your questions and concerns promptly. Clear and frequent communication will help you stay informed throughout the process and make informed decisions with confidence.
Also, consider the agent’s network and resources. A well-connected agent has access to a wide range of listings, including those that may not yet be on the market. They can also recommend reliable mortgage brokers, home inspectors, and other professionals who are essential to the home-buying process.
Your real estate agent will be your eyes and ears in the housing market, so he or she needs to understand you and your goals. Finding the right fit makes a big difference in your home buying experience. You can meet with a few agents before choosing one to work with. Guidance Home Services also are available to help match you with a proven real estate agent in your local area.
By taking the time to find the right real estate agent, you can ensure a smoother and more successful home-buying experience.
What You Absolutely Need to Know About Buying a Home
Buying a home is one of the most important decisions you will make. Know that the team at Guidance Residential is here for you every step of the way from pre-qualification and pre-approval on through to finding the right real estate agent for you and your family. We invite you to explore the home buying process with Guidance Residential today.
Guidance Residential’s co-ownership model of Islamic home financing remains the #1 U.S. Islamic home financing provider, with more than 40,000 families assisted over more than 20 years. Learn more and get started on your home finance journey today.
Your Guidance Residential Account Executive is here to help with any questions. Looking to refinance or purchase? Have a friend or family member who is looking for a home? Call 1.866.Guidance, or start an application today.
Originally published January 2019, updated May 2024.
