When it comes to buying a home there are many things to consider. After all, it is a huge financial investment and one that you are locked into until you choose to sell. While owning your own home can be great and often a lot more affordable than renting a home, there are also different expenses and financial obligations that come with being a homeowner. Knowing a few things before setting out to purchase you first home can make all the difference. Check out our list of things to know before purchasing a home or property.
What You Need To Know Before Purchasing Your Home
- Beware Of Fixer Uppers- While purchasing a fixer upper may seem like a good idea and may allow you to buy a home in area than otherwise may be a bit out of your price range, remember that some fixer uppers can turn into a money pit. It is EXTREMELY important that you have a thorough inspection done of the house, plumbing and especially the foundation! If there should be something wrong with the foundation it is better to know beforehand and most times recommended to shy away from buying a home no matter the area should the foundation be compromised or have other issues.
- Do Your Homework- should you find a home that you really like and are prepared to put down a deposit on or make an offer for you should ALWAYS do your homework first. This means you should check out how long the home has been on the market, if there have been previous offers since it has been on the market. What the cost of insurance , utilities, and HOA fees may be so you have a better idea of what it will cost to keep your home up and “running”. You also want to make sure that the home is on the market for a fair price and that the asking price isn’t inflated. By doing a little research on the home/property you can save yourself a lot of money and headaches
- Start Saving For That Down Payment- If you are looking to buy a home in the near or far off future it is best to start putting money away for a down payment. While first time buyers especially have different percentage options for a down payment it is always recommended that you put down at least 20%. This will help lower your interest rate, lower mortgage payments and also allow for other loans to be offered.
- Don’t Rush, take Your Time- Don’t allow realtors to make your feel rushed into a buying decision. Or don’t put pressure on yourself to make a rushed decision. While you may like a home now if you feel like things are moving a little to fast pressed the brakes and take your time. If the result is losing the home it may be for the better. With a financial decision this big you don’t want to feel rushed in to decision making or like you can’t completely get your thoughts, finances etc in order. Once you have signed the paperwork and are in the closing process there isn’t any turning back. It’s best to take your time and not to rush into anything.
Purchasing a home can be somewhat of a stressful time but it should never be TOO stressful. Remember you are the buyer and in control of how you let things proceed. Don’t allow yourself to feel pressured or bullied by a realtor or potential seller. It’s best to get your ducks in a row and take your time before making any big decisions. You will definitely feel better about it in the end.