This post is all about things you need to know before buying your first home.
Before I bought my first house, I had a lot of questions that a lot of friends and family and my real estate answered for me. But you don’t know what you don’t know. And that includes questions! There’s a lot of things you just might not even know to ask.
So here’s the top 15 things you need to know before buying your first home.
1. Your first house will not be your last
That is not to say that some people only ever buy one house, but that is not the norm. If you can afford your dream home and you find it, absolutely go for it! But don’t wait until you can afford your dream home to purchase a house. If you can afford a house that may be a little smaller than you hoped or doesn’t check every box you had in your mind, go for it.
Becoming a homeowner is the first step to building financial stability. It’s okay if it takes three, five, even ten years to afford your dream home. The important thing is, you took the first step and you’ve set yourself up for success.
Remember, paying each month to rent an apartment or house is like dumping money in the garbage. When you purchase a house, you’re making an investment and each month you pay into that mortgage, you are building equity. Make the best of the home you can afford and before you know it, you will be signing on your dream house in no time.
2. Just because you qualify for the loan, doesn’t mean you can afford it
This is such a tough one!
Just because the bank approves you for the loan, does not mean you should take it.
Make sure you really understand the finances of it and how much you will be spending on other living expenses. Figure out your exact budget for every expense you will have before deciding on the house.
Basically, don’t go house broke.
It might be your dream home, but if you can’t afford it, start small and work your way toward that dream home. It’s better to be ready financially than to force yourself into a situation that leaves you putting your whole paycheck every month towards the mortgage. Believe me, it’s not fun.
So keep dreaming, but remember to stay within your means and one day you will work your way to your dream home. It will be that much more rewarding!
3. Don’t put all your eggs in one basket
This point tails on the last one. Don’t spend all your savings on the downpayment, even if it means not putting down 20%.
Consider the deck, is it in good condition? Do you want to replace it? Do the walls need painting? How is the grass/landscaping? Also consider furniture. Are you starting from scratch and need to furnish the entire home? How big is your home, are there a lot of rooms?
Calculate all of this into your budget before making any offer on a home. It could save you down the road.
4. The seller pays for your realtor, so find the best one
This is something I think a lot of people don’t think about.
You do not have to pay for your agent when you are buying a house. Do your research and get the best realtor. Interview several realtors, ask about market analysis and market data. You want someone who has been doing this for years, will do their homework, and can really give you good insights on homes in your area to get you the best deal. This is something I didn’t stop to think about.
5. Don’t pass on the inspection!
Whatever you do, ALWAYS get an inspection done. And make sure it’s someone reputable. This could save you thousands of dollars or even change your entire mind about buying the house.
If the house needs a lot of work, and you still want it, negotiate a lower price. Times are different now. It’s not like it was back when people were offering huge amounts of money double the worth of the actual house and passing on the inspections. A lot of them never even saw the house in person before making the deal. This gives me a heart attack just thinking about it.
Please, please, please do not ever do that. Always consider how much more money you want to invest into making it better before making an offer.
6. Remember to negotiate
Tailing on the last point, there is always room for negotiation. Thankfully we did this and it saved us a HUGE amount of money. If a house has been on the market for a while, try to find out why. You never know what’s going on behind the scenes and if they need to sell the home quickly. It could be anything from moving out of state for a job or the sellers could be buying another home that requires them to sell their home (that’s what happened to us and it saved us a lot of money). Not every situation is like that, but understanding the seasons, being willing to wait for the price to drop and understanding your buying power is a game changer.
That in mind, you always want to be reasonable with your negotiating too. Sometimes if you’re too outrageous in your offer, you can insult the seller and they won’t accept any offer you give them.
7. Consider location
Location can say a lot about a home.
Is it in a flood zone? How far is the nearest school? Is it a high traffic area? Is it near water? Being near water could mean lots of mosquitos and paying big bucks for bug services. Decide what is worth compromising to you and what’s not. It’s always good to know what you’re getting into and to plan accordingly. Ask your realtor about this, they should be able to give you information about the location.
I would also check the sex offender registry in the neighborhood and surrounding area. This is particularly important if you have or plan to have kids.
Ultimately, decide what is worth compromising to you and what’s not. It’s always good to know what you’re getting into and to plan accordingly.
8. Get the carpet professionally steamed BEFORE moving in!
8. Get the carpet professionally steamed BEFORE moving in!
You will THANK yourself 100 times over for doing this! It’s worth every penny, trust me!
I think this is something a lot of people overlook when purchasing their first home, but it is an absolute MUST. Start fresh with a clean carpet, you don’t know who lived there before and what that carpet has been through.
9. Paint walls, replace carpet/floors, and other big repair items BEFORE moving in
It will be a pain in the butt moving furniture…AGAIN if you don’t. And you might even put it off for months or even years to avoid the hassle.
You don’t realize how much of a pain it is to move furniture around, especially when you’re living there and have painters in your house every day. I only got a couple rooms painted before I moved in, and now I wish I had done a lot more than that.
Plan ahead so you can save yourself in the long run.
10. Check under rugs!!
You never know what the home seller might be trying to hide. We discovered under the living room rug was a big pee stain from their dog! Professional cleaners couldn’t even get it out, so check everything!
11. Ask for gift cards
You will be spending a LOT of money at stores like Home Depot, Lowes and other home improvement stores if this is your first house. So consider adding gift cards to your Christmas and Birthday lists!
12. Take your time
Never feel rushed or pressured into buying a house you’re unsure of. If the sellers are telling you an offer only stands for a day or two and you really aren’t sure about it, don’t accept the offer.
You are the one that will be left paying for that house at the end of the day.
So don’t do anything you aren’t comfortable with. Wait until you are absolutely confident and certain that this is the right move for you.
And remember, there’s always new houses being put on the market, so be patient and if you miss out on one house, there will always be another…and you might even like the next one better.
13. Go for walks in the neighborhood
My husband and I did this before we bought our house and I highly recommend it. You can get a really good idea of the kind of neighbors you will have, the community and safety of a neighborhood by just going for walks. I recommend going in the day time and at night time. It’s also just fun to dream and imagine yourself living here some day!
14. Don’t bother looking at a house that’s not in your price range
Now, this might be debatable. But for me, I know I didn’t bother looking at any house that was way out of my price range. The house I ended up buying was originally listed way out of my price range, so I never even clicked on the listing. It wasn’t until the price came down a lot that I began looking at it.
The risk is if you start looking at so many houses out of your price range, it could lead to discontentment with what you actually can afford.
It’s always good to dream and inspire yourself, and sure, you can look at your dream houses, but just be careful not to set unrealistic expectations on yourself in that moment or feel discouraged.
15. Look at the house as many times as you need
Never feel pressured to rush into anything with the fear of “bothering” the sellers or your real estate agent. If you feel like you need to see the house one more time…for the 5th time…don’t feel bad, just do it. You’re the one that’s going to end up stuck paying for that house, not them.
BONUS TIP: Don’t take out any loans or new credit cards when you’re ready to buy a house
Mortgage loaners will tell you not to take out any loans or open new credit cards when you are applying for the loan. It complicates everything and can affect whether or not you get approved. You don’t want to drag the process on longer, so keep that in mind whenever you’re ready to buy a house.
This post is all about things to know before purchasing your first house.
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