Buying your first home often comes with a wide range of emotions. You may understandably be excited about this prospect and eagerly looking forward to being a homeowner. However, you may also be feeling stressed out about finding a new home, paying for the home and the unknown aspects of the buying and mortgage application process. By learning more about the process, you can be better prepared for the experiences in store.
Location is Critical
Long before you begin looking for a dream home, you should decide on an ideal area of town or even a specific neighborhood that you want to focus your attention on. Everything from the crime rate and the quality of the schools to the cost of insurance, property appreciation rates and even your commute time will be impacted by the location you select. Ask your real estate agent to provide you with tax and crime data for neighborhoods you are interested in. In addition, the location of a specific home in a community is important. Visit the home at various times of the day to determine how noisy the neighbors are, how busy the street is and how many cars are parked on the street. You can also research the properties nearby to ensure that you will not have to deal with construction or other issues in the near future.
The Closing Costs Can Be Significant
You may have gone to great lengths to save up enough money for the down payment on a new home, but you may have underestimated the closing costs. In some cases, closing costs may be as high as two to three percent of the sales price of the home. With this in mind, take a closer look at your budget to ensure that you can fully afford to buy the home you want. You may consider asking your mortgage lender for a firm quote on closing costs as well.
There May Be Hidden Property Damage
It is easy to fall in love with a home that you tour, and you may be inclined to think that the home is in great shape because it looks fabulous. However, underneath a recently cleaned up, a well-manicured lawn and a fresh coat of paint, you may find serious and costly damage to the home. A property inspection is optional in many cases, and some home buyers may be inclined to save a few hundred dollars by avoiding this expense. However, a property inspection can provide you with detailed information about the true condition of the home. You may be able to negotiate with the seller to repair some of the damage before you finalize your purchase.
The Cost of Ownership Is Higher Than You Think
Many new home buyers fail to properly adjust their budget when preparing to move. Your new home purchase comes with added expenses related to home insurance, property maintenance and property taxes. It also may affect how much you pay for commuting, utilities and more. Even your personal auto insurance premium may change when you move because you may be changing zip codes. In addition, when you take on a significant debt, such as a home mortgage, you may be more inclined to need life insurance. There is additional cost for this. Carefully review all aspects of your budget to determine which items may change once you move. By doing so, you can minimize the financial stress you may feel after you move in.
While buying your new home can be a monumental event, many first time home buyers are unfortunately displeased with various aspects of the process. Proper preparation and planning can help you to reduce this possibility with your own home buying experience. You can easily explore these factors in greater detail as you embark on your home buying journey so that you are better prepared for the experience.
David Glenn is a home improvement expert. He occasionally freelance writes about home maintenance and DIY home repair. He’s also knowledgeable about topics like how to improve social presence and building a reputation online.
