If you’re ready to take the plunge into homeownership, then congratulations! You’re probably already sweating about all the things you’ll need to consider and work toward. But before you do anything, it’s vital to understand what you’re getting yourself into. Here are six hard and true facts that first-time homebuyers should know and accept before they start their search.
Your Budget Is Not a Suggestion
First things first: you need to know how much you can afford. It’s crucial to consider your total monthly expenses, including mortgage payments, property taxes, insurance, and maintenance costs. Use a mortgage calculator (there are plenty of free ones online) to get a ballpark figure. And remember, just because you’re approved for a certain amount doesn’t mean you should spend it all.
You Need a Home Inspection
Discovering your home has a swathe of issues right after closing is both frustrating and surprisingly common. Get a home inspection; a good inspector can save you from spending a fortune on repairs later. You’ll want to know about the roof’s condition, plumbing issues, and any hidden problems lurking in the basement or attic, as these are the most overlooked areas when interested buyers are surveying the home.
Location and Commute Are So Much More Important Than You Know
We’ve all heard the mantra: “Location, location, location.” But what does that really mean? It’s not just about being near your favorite coffee shop. It’s about having a daily commute that doesn’t make you question your sanity. Test out your commute during rush hour before you commit. Ask yourself if it’s sustainable to do this every day you need to go into work. If it isn’t, then it’s likely not the location for you.
Homeownership Comes With a Lot of Responsibility
While owning a home can be a dream come true, it’s also accompanied by a hefty dose of responsibility. Forget about calling your landlord when the toilet backs up or the heater stops working. Now, it’s all on you. And that can get really expensive if you aren’t careful. Many people would suggest learning how to DIY, which can save you a lot of money. Yet it’s equally vital to know what you should and shouldn’t attempt to DIY; that can also save you a lot of money and headaches.
Remember the Closing Costs
Budget for your closing costs in advance. They take many new homeowners by surprise and can be up to 5% of your loan amount. Closing on a home often comes with a lot of fees and red tape you might not be aware of. The more knowledge you arm yourself with, the less likely you are to end up in a financial pickle once you finally get your keys.
You Can’t Always Get What You Want
As a first-time homebuyer, you might have a Pinterest board filled with dreamy kitchens and sprawling backyards. But the reality is that you may have to compromise on certain features. You can combat disappointment by being realistic about your must-haves versus your nice-to-haves. This can help you stay grounded during the search process.
