So you’ve decided to buy your first home. This is an exciting period in your life that you should enjoy. Home ownership is something that everyone strives for and making the decision to jump into the real estate market can feel overwhelming and exhilarating at the same time. However, buying a home is not always exactly what we expect. There are many things that first-time homebuyers should know before investing their hard-earned money into a property.
Here are several things that first-time homebuyers should know and avoid before buying:
Know What You Can Afford
There is a slight disconnect between the loan amount approved by the bank and the realistic mortgage amount you can afford in real life. In many cases, banks estimate loans on the high end, which could potentially cause some financial strain if you purchase a home that you can’t necessarily afford. Many homeowners will go into buying thinking that they should use the entire amount of their pre-approval for their home, not taking into consideration other expenses such as utility bills, moving bills, and general life expenses. Creating a realistic budget and knowing exactly what you can afford will help keep you grounded during the search.
Find Out what to Expect from the Neighborhood
Once you’ve chosen a neighborhood that you want to settle in, make sure you take a look at the building plans. That way, you will know exactly what to expect down the road, whether the neighborhood is planning to expand, build retail properties, or if there are any other factors that may contribute to your quality of life in that particular home.
Don’t Skim HOA Agreements
In the deluge of paperwork that comes with buying your first home, you may neglect to read any homeowner’s association agreements. This is a critical mistake since the HOA agreement will outline many important rules and obligations that you agree to take on as a homeowner in the area. For instance, HOA fees are outlined in the agreement and by signing the agreement without reading it, you may experience unexpected fees that you were not properly prepared for.
Weigh Your Options
Getting a great deal on a property that needs some work is a great investment for some. While others prefer to pay a higher price for properties that have already been renovated or upgraded. Before looking for your first home, you should decide what you want. Are you looking for a custom home that requires a little elbow grease or are you the type of person who wants to move into a place that is already livable and modern?
Save a Down Payment
While there are many resources for first-time homebuyers, we recommend always having a down payment saved. Not only will a down payment help reduce your mortgage payments, but it will also make you look stronger in the eyes of a seller and give you more negotiating leverage during the sale.
For help with all your first-time homebuyer questions and concerns, talk to the experts at Tarvin Realtors by calling (201) 444-0690 today.