Buying your first home can be an intimidating decision. Not
only will it likely be the biggest purchase of your life, but it is
oftentimes both a lengthy and complex process.
It goes without saying that there are many factors to consider as a
first-time home buyer. There’s a lot to learn, and a lot to know, about a
process that commonly takes months to complete from start to finish. Even
when things go smoothly, a first-time home buyer will require patience,
organization and knowledge to navigate through the process.
Here are 10 things to consider when buying your first home:
The difference between wants and needs. When you have a clear
understanding of what you want versus what you really need in a home, you
will be in a position to make decisive, effective decisions that might help
you land what you really want.
Getting pre-approved for a mortgage. Not only will you avoid
homes you can’t afford, but pre-approval from a lender will give you the
leverage to make a serious offer when you find the right home.
The real cost of home ownership. Sure, there is a mortgage
payment, but what are the costs of living where you are buying? When you
factor in all the expenses – utilities, property taxes, repairs – can you
afford to own a home?
Where location ranks on your list. Know going into the process
how important location is to you. It’s about your lifestyle. A bargain isn’t
really a bargain in a neighborhood you don’t really want to live in
long-term. Are you willing to accept a smaller or older home in a great area
where value will rise?
Working with a professional. Buyers now have access to do a
considerable amount of research online, but a qualified buyer’s agent should
be an expert on the neighborhood, recent sales, trends, and negotiating the
terms of an offer.
The surrounding area. Sure, one block might be picturesque, but
the entirety of the surrounding area will determine the value of a home.
Explore the surrounding areas for schools, hospitals, fire stations, airports
and train tracks that might alter your opinion. Also drive around at
different times of the day to see if the vibe of the neighborhood changes a
few blocks away.
Pay attention to taxes. Review the property taxes several months
back and talk to your realtor about taxes. Know that a re-appraised home can
lead to higher tax rates.
Talking to neighbors. The people who know most about what it’s
like to live in a neighborhood, how well the sellers took care of a home, and
underlying issues that might not be obvious, are the neighbors.
Do as much homework as you can on the property. Along with a
comparative marketing analysis to spot area trends, get detailed records of
home improvements. Ensure the title is “free and clear” so there are no
problems with assuming ownership, and purchase homeowner’s insurance. Get
everything in writing.
Getting a home inspection. No home is perfect, and a reputable
home inspector will find out as much as possible about what is wrong with a
house. Determine the real issues and what should be accounted for in your
offer, as well as what might need future attention.
