Buying a home is usually the largest purchase a person will make in their lifetime, and along with that can come a lot of stress. There can be so many unknown factors and things to take into consideration, and when mistakes can cost thousands of dollars, you want to be sure to take the time to educate yourself as much as possible.
Buying a home is usually the largest purchase a person will make in their lifetime, and along with that can come a lot of stress. There can be so many unknown factors and things to take into consideration, and when mistakes can cost thousands of dollars, you want to be sure to take the time to educate yourself as much as possible.
There may be grants and special loans available to help you buy a home.
A lot of people think you have to have a 20% downpayment saved up to be able to even think about buying a home, but that’s not always the case. Depending on your situation, there may be special loans available, grants to help you with the down payment, programs offered by your employer and much more. Talking with your real estate agent and a knowledgeable lender (and doing some online research of your own) will show you some of the financing options that may be available. Be careful, though: Many real estate finance-related websites will ask you for personal information upfront, and you never want to start signing up for things before you really know what you’re getting into.
2. There can be a lot of surprise costs included with buying and owning a home.
In addition to your down payment and closing costs due when you first buy your home, there can be some hidden costs on top of your monthly mortgage. How much are your property taxes? Do you have any HOA dues? What will utilities run you each month? Does your new home need any upfront maintenance or any ongoing maintenance or upgrades? Be sure to budget for all of these items — they can add up fast.
3. Location can have a huge impact on your life.
The location of your potential new home can count for more than you might initially imagine. First, there are the financial implications to consider: How easy will it be to resell your home in the future? What is the local real estate market like? How did the neighborhood do in the last economic crisis, and has it recovered?
Then, there are the more personal aspects of location to consider: How long does it actually take you to get to work? (It doesn’t hurt to try out your commute at the time of day you actually go to and from work. This can be a dealbreaker.) If you have kids in school, do you like the local schools? Have you visited them in person? Is living just a few minutes from family important to you? You might have found the perfect house but it complicates other areas of your life, it may not be the right fit. Take the time to really weigh your priorities and explore the neighborhood.
4. Your real estate agent matters.
Who you end up using as a real estate agent can have a big impact on your purchase, with effects that can be felt for years to come. (That may sound dramatic, but it’s true.) Is your agent more concerned with getting their commission check than with helping you find a home that actually meets all of your needs? Are they knowledgeable about the local market? Is your agent knowledgeable about homes, and can they alert you to any potential issues that could be a big problem down the line? Are they attentive and responsive to your questions? Do they specialize in the type of home and specific neighborhood you’re interested in?
Not every real estate agent is the same, and you need someone who can be attuned to your unique situation and needs. Asking them questions (and paying attention to the questions they ask you) can clue you into whether or not they’re a good fit. Interview a few different agents — don’t default to working with the first person you find.
5. Be prepared to make compromises.
No home is perfect, and most homes will probably not have every single characteristic on your wish list. There are many things to balance when you’re searching for a home, and a few of the biggest things are usually price, location and size. Unfortunately, sometimes only two out of three things can be achieved, and you’ll have to weigh your priorities to make the final decision. Taking the time to actually make a list of the qualities you’re looking for and identifying the items you’re not willing to sacrifice will help to guide your search.
6. The type of real estate market you’re currently in can significantly impact your home buying process.
Do you know if you’re in a buyer’s market or a seller’s market? One situation versus the other can drastically change how you approach buying a home, and understanding the larger context of what the market is doing can determine whether or not your offer ultimately wins. But don’t worry, as long as you work with an experienced real estate agent who is knowledgeable about the neighborhood and type of home you’re looking for, they’ll be able to guide you each step of the way and create a strategy to help you win the home you have your heart set on.Even if you’ve already bought a home before and have been through the homebuying process, there’s always something new to learn. These pro tips will help set you up for a positive and successful real estate experience.