There is a lot of stress involved when it comes to buying your first-ever home. Many first-time home buyers have no idea where to begin on this huge investment. However, you want to make sure that you have your eyes wide open when making such a large emotional and financial investment. Here are a few tips to help make that first purchase a little bit easier:
1. Know Your Budget.
Before you ever even think about looking at homes, it is in your best interest to determine your budget. If you aren't paying with a lump sum of cash, then you will need to consult with a mortgage broker or a bank in order to determine your home purchasing budget. You will also need to determine potential future costs, such as property taxes, utility costs, HOA fees, home inspection fees, etc. Make sure that you do have a steady income to maintain these costs once you have completed the purchase.
2. Stay Realistic!
While you probably want the biggest, prettiest house in the neighborhood, it may not necessarily be realistic. Speak with a realtor about homes in the neighborhood that you are interested in. See what they typically sell for and make sure it's within your budget. Otherwise, it may be time to face the truth and move to a more affordable neighborhood. You can avoid disappointment by doing your research and ensuring your budget can purchase a home in the current real estate market.
3. Create a List of Needs Vs. Wants.
Grab a piece of paper and a pen and determine what you can and cannot live without. While it may be nice to have a Jacuzzi in the master bathroom, it is possible to live without it. This is especially true if every other part of the home meets your needs. Keep in mind that you can always renovate and upgrade at a later date if there is something missing from the home that you can afford to purchase now.
4. Request Full Disclosure.
When you request full disclosure from the seller or occupant of the home, they are legally required to inform you of any and all problems associated with the property and its structure. This includes mold, malfunctioning drainage system, inefficient HVAC unit, etc. It's always recommended to have a professional perform a home inspection prior to buying a home so that you know what you're getting yourself into beforehand.
Although no one wants to deal with legal issues, they may arise during a real estate transaction. You may want to consider speaking with a real estate lawyer, such as Heil & Saylor, to provide legal support throughout the entire process of buying your first home. A lawyer will make sure that the process is done correctly and quickly.Share