Helpful tips for first time home buyers that you didn’t think of. Keep these in mind while house hunting.
Spring is the most popular time to buy and sell a house. Maybe you are shopping for your first home and you don’t know where to start? Buying your first home is a huge deal and one of the biggest purchases you’ll ever make. There is a lot that goes into buying your first home that you might not know about and it can be overwhelming. We bought our first home about 3 years ago and we learned a lot during the process. I’d love to share some tips you might not have though of and what I wish I knew before buying a house!
Save for a down payment
Save. Save. Save. The down payment requirement depends on the type of mortgage and lender you choose. It’s best to save for a down payment and also make sure you still have some money left in your savings incase of an emergency! Experts suggest to save for at least 20% down.
Make a list of your must haves
Know what you want. Do you absolutely need 3 bedrooms, a garage, a basement, maybe a pool? Then sit down and make a list of you must-haves before you make any big decisions. Also, always check what kind of heating/cooling system the house has and think about how much it will cost. (Electric, gas, propane, oil, etc.) These are all different prices and depending on where you live can be a big deal for your budget.
Don’t be afraid to ask questions
Buying your first home is a learning process and you will have so many questions. Make sure you find the right agent. Check out reviews when looking for a real estate agent. Don’t be afraid to ask them questions, they are there to help you!
Don’t underestimate remodeling costs
If the house needs some work then I suggest you over budget the remodeling costs just to be safe. There are always little problems you can run into along the way. Renovations aren’t as easy as they make it look on TV. Not only does remodeling a home cost money, but it’s also a lot of time and energy as well. So make sure you take that into consideration.
Scope the place out
Do your research! If there is a house your interested in, don’t be afraid to do a little stalking. Look up the noise level on Zillow, talk to some neighbors if you see them outside, drive by the house at different times of the day to get a real feel for it. This will give you a better idea of what it’s like to live there, because just seeing the house once for a little while does not show you what the people around it are like. You can also ask your real estate agent for info on schools, crime, etc.
Don’t forget to budget for closing costs and taxes
Make sure you know what the taxes and closing costs are and make sure you’re taking them into consideration. Along with your down payment you will also have to pay for closing costs. Many people tend to forget about these expenses.
Only borrow what you can pay for
Just because you’re approved for huge amount, doesn’t mean you should buy the most expensive house you can. You don’t want to be house-poor. In deciding how big a loan to actually take, you’ll want to look at the house’s total cost, not just the monthly payment.
Be prepared to sign your life away
They aren’t kidding when they say you are going to sign your life away when you buy a house. You are going to sign a lot of papers. I mean A LOT. It can seem super overwhelming, but just know this is a normal part of buying a home.
Hopefully you found these tips helpful. Good luck on your new home search! If you have any other tips for first time home buyers or questions leave them in the comments below.
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