In 2018, first time home buyers consisted of about 34% of the total home buyers in the US. If you are looking forward to joining these ranks in 2019, you are most probably wondering about the things you should know before the final decision.
Many people dream of buying a house for many years before they begin the process. You may have planned how many bedrooms you want for your house, or even what your neighborhood should have.
However, the process of buying a home is more than picking your favorite listing and closing the deal. It’s essential to understand the hidden costs, what you should look for, and the questions to ask.
The process involves many challenges, although you can overcome them if you’re determined. If you aren’t sure where to start, here are some useful ideas to use. If you stick to them, it will be easy for you to get your dream house.
1. Understand Your Need vs. Wants
Do you want a ready to move in house or not? What things would you like to have in your new home? Finding the right questions to these answers in your early house hunting will guide you up to the final stages.
The decision may not be easy for a first-time buyer. Thus, it might be advisable for you to look for an advisor to help you. An advisor will guide you through the pros and cons of each decision.
The more thoughtful and careful you will be in this stage, the more satisfied you will be with your final decision.
2. Factor in All Fees for Buying a House
It’s easy and exciting to search online and find an estimation of your dream house. You should, however, beware that the price tag of a new house comes along with additional fees and expenses.
Most estimated mortgages don’t include down payments, insurance fees, closing costs, and taxes. So, when establishing your wish list and budget, think beyond the listed price of the house.
Also, spend only what you can afford. As a serious buyer, you must have a serious budget. Don’t just fall for any affordable property.
Besides, the house that you finally chose must be cheaper than your worth. It will be useless for you to use all your savings and net worth to purchase the home. How will you pay your bills?
For the best decision, use a mortgage calculator to know what you can afford every month. Also, spend time to compare different prices in the market.
3. Find a Great Real Estate Agent
Although you can carry out all the processes alone, the purchase will be smoother if you have someone to help you. A real estate agent helps you to look for the best house, and to negotiate the deal.
Look for an agent with a good reputation and experience in the industry. You need someone who will be able to command the room by offering their knowledge and expertise.
If you are not sure of how to select one, look for what others say about them. For instance, you can go through online reviews and ratings.
An excellent realtor should be reliable and have good communication skills. They should also be affordable.
Most of them are paid in commissions, although others need a down payment for the work. Be sure to select options which work well for you.
4. Get a Good Inspector
Besides the real estate agent, you need an inspector. The work of an inspector is to go through the house to confirm that its aspects go hand in hand with the description.
A house may look lovely and updated, but it may have underlying problems that you will have to deal with some years down the line.
Since inspectors work for the benefit of the buyer, you shouldn’t hesitate to get one. Avoid blind investments by hiring a good inspector before closing the deal.
5. Buying a Home Is a Commitment
The word commitment is scary. It is, however, a word that you must be familiar with when purchasing a house.
If you are planning to buy a house with another person such as a business partner or friend, consider this a long term commitment. Most mortgages last for 25 years, but most partnerships do not last for that long.
It’s good to buy a house with another person, especially in this period when the interest rates are increasing daily. However, you should consider the level of your commitment very carefully.
If your home buying partner is not your spouse, it might be necessary to engage a lawyer. The lawyer will put together the mortgage payments, liabilities, repairs, and much more just in case the partnership comes to an end.
6. Go an Extra Mile
With the internet, it’s pretty easy to get whatever we want. If you want a specific house, you only need to Google its address. According to studies, 84% of home buyers find online information quite crucial for their house search.
Much as the internet helps us to find the homes we need, most real estate’s photos can be tricky. When shopping for your first home, don’t depend too much on the pictures you see. You can’t know what a place looks like until you get there physically.
Just because the house listings have mentioned several features doesn’t mean that they are real. Also, the list doesn’t mean the entire features available have been mentioned.
No concern or question is considered too silly or small to inquire about. So, feel free to ask about what you want or what concerns you.
7. Be Sure You Are Ready
Purchasing the first house is more than a financial investment. So, before you consider buying it, take time to measure your readiness.
Unlike living in an apartment, owning a home comes with its responsibilities. For instance, you have to finance all repairs, bills, and much.
Don’t buy a home under pressure. Wait until you’re financially and emotionally ready.
Plan Well
Buying a house is an exciting process. It will be your place to decorate as you want.
You will also share it with your friends and family. For this reason, the purchase should be made with a lot of knowledge and research.
Contact Mecklenburg Mortgage and get an opportunity to speak to experts about your next purchase. We will advise you on the best rates in the market to ensure that you get the best property for your money.