While purchasing a property, what are the crucial factors apart from the following that should be considered:
Any dues
Comparative rates of similar property
Some recent deals of area
Available loan facilities
Future scope
Expected escalation of prices.
What are you purchasing the property for? Rental, Flip, etc.
Other topics that should be considered when buying property:
Property Construction - in harmony with area? Structural problems?
Age of Construction - Determines economic and actual life.
Condition of Property
If you are buying outside of a real estate agent (MLS):
Property liens - 2nd mortgage, late HOA dues
Unpaid property taxes?
Why is the property being sold? Foreclosure? No cash flow? Too many repairs? Moving?
i would ask the same question…
what are you trying to do with the property… exit strategy? long term income? short term gains?
doesn’t matter what the neighborhood is if i’ll be getting $500/m cash flow…
I agreed with all the above, just wanna add one of the most important aspects: if property has clear title, meaning that liens is completely taken off.
Unless you are purchasing a property from an auction or a tax sale, all liens must be cleared off the property. For example, all REO properties will come will clear title. This is why buyers have Title Insurance. It also is the reason why you want a Warranty Deed rather than a Quit Claim Deed.
Here’s the 4 ways to purchase a property
First is strengthen your credit. The higher your FICO score, which ranges from 300 to 850, the better interest rate you’ll qualify for. This is extremely important. The difference between a 4.5% interest mortgage and a 5% interest mortgage can mean tens of thousands of dollars over the life of the loan.
Second
Get pre-approved to get the actual amount you can pay. Apply to several lenders within a two week period so that the inquiries do not damage your credit report. Do this before contacting a real estate agent so you have a firm idea of what you can afford, and you don’t accidentally fall in love with a house that you cannot afford.
Third
Shop for your mortgage. Wait — why would I shop for a mortgage before deciding on a house? Isn’t that totally backward? Not necessarily. Shopping for a mortgage before you decide on a house can be beneficial for one overriding reason:
* You'll know exactly how much you can borrow before you buy your home. Too many people fall in love with a home that they — well — can't afford. They struggle finding a mortgage that covers the cost of the home. Finding a mortgage first and a home second is decidedly less sexy, but it's twice as smart. You'll immediately be able to tell whether a home is in your price range or out of it.
Fourth
If you qualify, check out first-time buyers’ programs. These often have much lower down payment requirements. These are offered by various states and local governments. You may also be able to access up to $10,000 from your 401(k) or Roth IRA without penalty. Ask your broker or employer’s human resources department for specifics regarding borrowing against those assets.
This post is an excerpt from
http://www.wikihow.com/Buy-a-House
Kristine, your post said “4 ways to purchase a property.” Perhaps it would have been better to say “4 step to purchase a property.” 4 Ways to purchase a property would be more in the neighborhood of: (1) Cash, (2) Bank Mortgage, (3) Land Contract or (4) Lease Option.
Plus getting pre-approved and shopping for a mortgage are nearly the same thing. This is really one step. It is the pre-approval that determines your mortgage amount.
• Any leans or taxes you would be responsible for
• Condition of property
• Location of property
• Repair costs
• If your living in it, what the up keep cost will be
• Age
Hope this helps a little :biggrin