First-time homebuyers frequently have one goal in mind: to cross off as many items on their wish list of what they need and want in the house they've been fantasizing about for the previous several years. However, read our list of 10 things you probably should be aware of before you find your ideal home, fall in love with it, and make it your own.
1. Setup the Correct Mortgage.
How often have you considered jumping at the earliest possible opportunity? The local mortgage broker's Facebook post advertising rates a point or two lower than what your bank or another mortgage broker is offering? Your mortgage advisor should provide you with options and advise on factors other than rates, such as the type of mortgage, the length, and your options for refinancing and paying down the loan. Ask your Real Estate Partners agent which mortgage professional is best suited to your needs before you leap into the best offer. This will ensure that you are dealing with an impact partner that goes above and above for your greatest financial transaction.
2. Open an account for home savings.
No matter how new or old your house is, upkeep and repairs will eventually be necessary. Nothing lasts forever, from the roof to everything in your mechanical room. For new home owners, it's crucial to be ready for these costs; create a savings account and make regular deposits. This fund should be set up for unexpected (but normally expected) expenses, such as your furnace motor expiring and you receiving a bill for $800 to fix it. This should be different from your emergency reserves, say if you were to lose your job.
3. Ask Questions Without Hesitation
There's nothing worse than having questions during a process, and while our team makes every effort to educate our clients along the way, there are times when an agent will be completely knowledgeable about a topic because they live, breathe, and work real estate 24/7 while a client may simply be ignorant of it. Don't be afraid to ask questions, whether to your agent, home inspector, lawyer, mortgage broker, or anyone else involved. These talented people should be more than happy to explain every detail throughout to ensure you're 100% comfortable and in tune with your purchase. It is our passion and job to make sure that you are at ease and understanding of the entire journey.
4. Spend Money On A House Inspection
While we fully trust the work of all of our partners, there are very few instances in which we wouldn't advise that our buyers hire and have a professional conduct their own home inspection. When a property is listed for sale, our team will produce our own home inspection depending on the property and circumstances. We've had offers come through on these properties that lacked home inspections because they were counting on ours to do the job. Recently constructed homes can and do experience problems.
5. Not Every Fix Needs A Professional
Disclaimer: While we can't tell a homeowner which repairs they should or shouldn't make, we can offer some client-reported improvements that have helped them save thousands of dollars.
One of our favorite tales of first-time homebuyers saving money on repairs involves a client who, after a year of ownership and some assistance from YouTube, began taking on more and more minor home improvements. When, on a chilly winter day, their furnace broke down, they called a furnace company and received two quotes that said it would cost between $2,000 and $4,000 to fix the furnace.
6. Help from family and friends is acceptable, but you should use caution while taking their advice.
In this profession, it's rather typical for friends and relatives to provide unsolicited advise, participate in decision-making, and occasionally take over entirely. We do advise those who want additional input from uninvolved parties to exercise caution. There have been some incredibly heartbreaking instances in which poor legal advice from non-legal professionals has cost our clients thousands of dollars after their purchase, which could have been easily avoided if they had sought advice from their agent and/or real estate lawyer.
7. Is This a Temporary Home?
There are several expenses involved with selling a house, including closing charges, real estate commissions, maintenance expenditures, etc. We bring this up because we occasionally encounter buyers who think or say, "We'll just move if we don't like it" or who believe that a significant change in living arrangements or lifestyle won't bother them. These buyers go from having a low rent space that allows them to travel and be free, with no personal maintenance responsibilities, to having to mow the lawn, carry a mortgage, pay property taxes, and pay maintenance bills—all while moving into a neighborhood they initially thought they'd like.
8. Keep Your Head and Ignore Your Heart
Last but not least, consider your reasons for moving and your destination. Recently, one of our clients moved to a neighboring town to be closer to one of their siblings. They weren't crazy about the neighborhood or their new house, but the idea of raising their two families together ultimately convinced them to make the move. Unfortunately, three months after they moved in, their sibling and their significant other decided the town wasn't the right fit for them and listed their home for sale.