For many people, buying their first home is one of the biggest decisions they’ll make in their life. This means that you want to make sure that you don’t miss out on any hidden costs or other unexpected situations that could arise during the process of buying a new home. Here are some of the things that you should consider before deciding to purchase your new dream home.
1: Location
Buying a new home can be an exciting but stressful experience. Before diving into the process, it’s important to arm yourself with knowledge and make sure that this is the right decision for you. Here are five questions to consider:
- What type of financing do I want?
- What's my budget for this purchase?
- How much does it cost per month in mortgage payments and insurance costs?
- Is there anything I need to repair or remodel before moving in?
- How long am I looking to stay in the area?
2: Do Your Research
Buying a new home is an exciting time in your life. However, it’s important to be mindful of the costs associated with the purchase and not overextend yourself financially. That’s why these five questions are worth asking when considering your new home purchase:
- How much will I have to pay for closing costs?
- What is my down payment requirement?
- What type of loan can I get and how much am I approved for in the amount I am looking at purchasing?
- Are there any pre-approvals or incentives available for me at this location?
- What is the monthly mortgage payment, including taxes, insurance?
3: Get a Good Home Inspector
Don’t just hire the first inspector that comes along. Ask for references and look for reviews online. You want someone who is thorough and will spend time checking everything from the roof to the crawlspace, not just what’s visible on the surface. They should be knowledgeable about local building codes, too, so they can give you peace of mind on whether your house will pass inspection when it comes time to sell it. If the place looks like it needs work or if anything seems off, they’ll let you know.
The best way to avoid surprises is by getting an estimate on renovations and repairs beforehand. Even if you’re looking at a foreclosure or short sale, there may be hidden issues that could crop up down the road. An experienced contractor can give an idea of how much any necessary repairs might cost and how long they’ll take to complete.
When it comes time for closing costs, ask your lender about their company policy before signing any contracts with them. If there are undisclosed charges later down the line, this information could save you thousands of dollars in fees later on when settling into your new space!
4: Pay Attention to Your Gut
When looking for the perfect home, take time to think about what you want in your next living space. If it doesn’t feel like the right fit, don’t be afraid to walk away from that deal and keep looking. Once you find that perfect place, pay attention to your gut. It’s telling you whether or not this is the place for you. It can also help save you money on repairs down the road if there is something wrong with the house.
Look at all angles of the house: You never know what might be behind doors or windows, so take a tour of all four sides of the property while you’re there. A good idea would also be to get an inspector to come by after purchase just in case something was missing during the inspection.
5: Have Realistic Expectations
When it comes to buying a new home, the best advice is to have realistic expectations. The market can be extremely competitive and prices fluctuate, so it’s important not to get discouraged if you don’t find your dream house right away. Plus, it’s often better to buy than rent because of appreciation rates and tax advantages. One thing that many people want in their future homes is space and lots of natural light – something you may not always be able to find in newly built homes. Another thing that buyers should consider is how long they plan on living in the house – as prices will usually vary based on location, quality, and features.
6: Don't be Afraid to Negotiate
A lot of people get intimidated by the idea of negotiating and don’t even try. However, every homeowner knows that negotiating is possible, and sometimes it’s necessary! The first thing to remember when negotiating is that the seller may not be as knowledgeable about what they have to offer as they think they are. They might be expecting you to make an offer at their asking price without batting an eye. When this happens, it’s best not to start with your bottom dollar but instead gauge how much room there is for negotiation by making them feel like they can ask for more. If you feel like their asking price is too high then it might be time for them to do a little more work to come up with something more reasonable.
