8 Things a First-Time Buyer Should Know
So, you’re ready to buy your first home – yippee! Just think, you’ll be paying your own mortgage instead of your landlord’s.
There is nothing more exciting for me than handing my clients the keys to their first home. But the process may seem overwhelming. (After all, we’re talking about one of the biggest purchases you’ll ever make.) With the following tips, stress can be alleviated, and the process can even be fun.
It takes a village. As your Realtor, I will be your go-to person throughout the home-buying process, there are many others who make the journey smoother. Ask me for referrals for lenders, inspectors and other resources (think structural engineer, plumber, electrician, painter, etc.) 2.
Understand the process. As your Realtor, I will walk you through all the steps in the beginning so that you know what to expect throughout the process (such as when my negotiation skills are your best friend, when money has to come out of your pocket, what happens when the inspection has surprises…).
Understand the current market. As your Realtor, I help set your expectations. When there are more buyers than homes on the market, can you beat the competition? What if interest rates are changing? What effects market changes?
There are no dumb questions. Whether it’s your first home purchase or your 10th, with an ever-changing market, the questions will change.
What you can afford and what you want to spend may be different. You have to be comfortable with your total payments. Know your comfort level.
It's more money than you might think. You may be getting a loan for the home, but out of your pocket comes the earnest money, the cost of inspections, down payment, closing costs. (However, there are programs that help with some of these expenses.)
Maintenance. Don’t forget about ongoing maintenance (servicing the furnace) and minor repairs (leaking plumbing) or major replacements (hot water heater). It’s less of a shock when you put some money away for a “rainy day.”
Other sources of income. There are creative ways to have others pay part of your mortgage (or generate the rainy-day fund). Think renting an extra bedroom. Or, maybe there is an apartment in the basement to rent.
Yes, the process might seem scary, but with the right people in your village and a can-do attitude, you’re embarking on a journey that helps build long-term wealth for you.