Three Things You Should Know Before Buying a Home
Finding the right home for you and your family can be a seriously difficult undertaking. It’s by no means a walk in the park, but it’s something most everyone needs to do at some point or another. Perhaps you’re over apartment life or you’re ready to own a home, instead of paying rent. No matter how you’ve come to the decision of homeownership, it’s necessary to understand you’ve got your work cut out for you. This is going to be one of the most important, most expensive purchases you will make in your life. So, it’s something you shouldn’t take lightly. Before long, you’ll be able to move into the home of your dreams. In order to reach that goal, however, you need to keep a few things in mind. Everyone’s path is different, but this should serve as a general guideline for a smooth homeownership journey. As always, the Brian Burds Home Selling Team is here to provide the guidance and assistance you’re looking for.
1) Down Payment Diligence: How To Hit the Ground Running
Buying a home isn’t something many can do on a whim. Sure, if you’re a famous Hollywood celebrity with cash to spare, you can easily purchase a 16-room mansion in the Everglades whenever you so choose (although this wouldn’t be a great way to spend your money). But if you’re like most of us, homeownership is something that’s been on your mind for a while. If so, you hopefully have a fair bit of money saved up for your down payment. If you don’t, then it’s time to get to work! Down payments tend to be around 20% of the asking price for the home, so any amount in that range would be perfect for you to get started.
Although some mortgage companies may allow lower (sometimes much lower) down payments, it will mean you’ll have higher monthly costs. Look at it this way, you can pay a higher down payment at the start and your monthly costs will be lower or you could pay a lower down payment and your monthly bills will be higher. It may sound simple, but it’s best to start off on the right foot from the start. When you’re ready to buy a home, you’ll understand that it’s better to wait for your financial situation to be squared away instead of making a uniformed and ill-prepared decision.
If securing a hefty down payment seems difficult or downright impossible, don’t fret! There are a handful of mortgage options that require low or no down payments. FHA and VA loans, for example, can be great options. Make sure to do your research and see which mortgage works best for your situation.
2) Finding the Right Place to Settle Down
Now that you’ve figured out the mortgage, it’s time for the fun to begin. House shopping is a time-consuming venture. In order to make this process run as smoothly as possible, it’s necessary to keep a few things in mind.
First, stick to a budget. You don’t want to look at houses that are priced too low or too high. This will only waste your time. Also, this way, your real estate agent will know exactly what your needs and requirements are. By sticking to a budget, you’ll be able to plan your future accordingly. You’ll have to pay your mortgage for years to come so you should futureproof by not picking a budget that could become an issue if anything were to change in your personal life.
Second, research the neighborhood you want to live in. Perhaps you want a home that’s close to your job, or maybe you’d be happy living in a neighborhood with low crime rates and highly-reviewed schools. Whatever the case may be, make sure to do the appropriate amount of research. Again, you’ll basically be hitching your entire wagon (aka your life) to this location. Try to picture yourself, your family, your friends, and whoever else may visit you at your home this year, next year, in five years, and so on. Can you see these things happening in this particular neighborhood? Is it an old neighborhood with plenty of history or a newer neighborhood with lots of construction going on? These questions may seem esoteric but they’re important to consider, especially when buying a home.
3) Don’t Fall Prey to These Common Mistakes
Everyone was a first-time homeowner at one point or another. Much like taxes, buying a home isn’t something they teach us how to do in high school. But this doesn’t mean you should go into the fray with zero information or knowledge. There are countless pitfalls you can avoid if you maintain a keen eye. Buying a home is an expensive undertaking, so don’t just save up for a mortgage and say “I’m finished!” Remember, there are a handful of other costs (such as closing costs) that should not come as a surprise.
Similarly, there are going to be many expenses that crop up after you move in. If you’re moving from a one-bedroom apartment to a three-bedroom home, you’re going to need to purchase new pieces of furniture to flesh out your new abode. Some homes may not come with appliances so you’ll have to purchase your own refrigerator, washer, dryer, microwave, and whatever else. In general, you may also have to pay for a home inspection and home insurance. Simply put, have enough money to work as a buffer throughout the entire process.
Choose the Brian Burds Home Selling Team, Today!
And so, we come to the close of another blog. If you reached the end, congratulations! We’re glad you stuck around and read what we had to say. If you’re planning on buying your first home, then contact our team. We’re ready to help you through every step of the way.