Buying a home is one of the most stressful purchases you’ll ever make. Why? Because it’s a big commitment. It’s like a marriage in how it’s exciting but scary. You’ll have many experiences in that home, and you’ll want to make the right choice. It will probably be the biggest expense that any of us will make in our lives. That is the reason it is so stressful. We do not want to make a mistake by making a bad decision.
Do you know the basic terms for real estate like what is a deed or what is homeowner’s insurance? It’s not uncommon to feel overwhelmed by the industry jargon. Taking a first time home buyers’ class may be a good idea just to get the wheels in motion.
Most important things to know before buying a home
- Know what you can handle
The biggest mistake people make is taking on too much home. Thirty percent of your take-home pay is what you should be spending for, not only the mortgage but all associated costs, like insurance and maintenance.;
This figure is a game-changer for most people. Don’t get discouraged, there’s a house out there for everyone. You won’t want to get into an issue with a foreclosure. That is ten times more devastating in every sense of the word than settling for what you can afford. You can take the extra money and create an extension to the home or sell it and upgrade.
- Don’t skip the closing cost configuration
Most people will concentrate on the down payment and forget that there’s ten to twenty percent more to save. There are always more fees and they should be accounted for with some leftover. The closing cost is unique to everyone and depends on your location and the loan type.
- Take care of that credit score
The credit score will dictate what you’ll pay or whether or not you’ll get a traditional mortgage. Don’t get discouraged here either. A good real estate agent will let you know what you need to work on and to what degree. They’ll work with you.
- Get pre-approved
Don’t make any bids prior to getting pre-approved. This will be the best way to win a bid. Agents want to be sure they’re not wasting man-hours showing homes to buyers that aren’t pre-approved. There are so many of them out there you’ll want to be able to compete.
- You buy more than just a home
Don’t make the mistake of getting mesmerized by the house and not take notice of the neighborhood and the area at large. Once you’re in, that’s it. You should look at the statistics of the area like crime and schools or whatever affects you. This is for the present and the future. There are several things to look at: the schools, as we said, and the general safety, location, and convenience.
Then look at the future. What are your plans? Will you be expanding the family? What will you be doing in five years? Will the home and the area suite you in the long run? This is important because it stops the confusion and stress if something changes in the family dynamic or career.
Choosing a home is not for the idealistic without the practical. In fact, once you take care of the practical, you can deal with the idealism. In fact, it’s bound to work better for you. Keep a balanced mind and clear communication with those involved in the purchase, including your agent.
Have a clear plan from what you have to spend to what may come up. Do the research and ask people that already have a home what you need to be aware of. This information will help you. There’s more fun when you don’t have to stress out on things you aren’t prepared for.
Remember to get organized and start a list of all the aforementioned tips here. Once you see what’s on the horizon, you can move forward to one of the most joyous times of your life.