When we asked some homeowners what they wish they’d known before they purchased a home, we found a theme: researching and understanding the responsibility behind owning a home. Get started with the advice below –
With the internet providing unlimited resources we have the opportunity to be very informed buyers. However, that also means we might get some bad or inaccurate advice. Therefore, it is wise to be thorough in conducting your research. Ask parents and peers and don’t be shy in calling mortgage companies and asking questions. Also, it’s good to be prepared for the pitfalls of owning a home. Repairs and updates to a home shouldn’t deter you from owning a home, but you need to have an idea of the cost and time you’ll be spending to keep your home in good shape.
- Read blogs, check Pinterest and Google
- Research the builder of the home you want to purchase. Read reviews. Check into negative reviews if there are any. Compare them to other builders.
- If safety is a priority to you, check crime rates in the area you would like to live in.
- If you have kids – look into the school districts and what they offer.
Home Specific –
- Ask if the title is clear.
- See if an escrow account for payment of taxes and insurance is available or required through your lender.
- Check into interest rates and compare them, also see if it’s a fixed rate that will not change during the term of the mortgage.
- Find out what the estimated annual homeowner’s insurance and property tax payments will be.
- Look into the history of home and lot in the public land records.
- Don’t fall in love with something you can’t reasonably afford. Get prequalified or preapproved from a lender so you have a realistic idea of what you can purchase.
- Be prepared for a down payment (most lenders will require 10-20 percent, but ask your lender to find out what is required for specific loan programs), closing costs, and set aside money for furnishings or updates that may be needed.
- Be prepared to maintain your property. Make a checklist to hang on your fridge to help you remember things like changing air filters monthly, checking seals/gaps on windows, and seasonal maintenance.
Think you’re ready to make a home purchase? Dig into these first-time homebuyer resources as a next step! Have your own homeowner advice? Interested in something specific? Email us your input at firstname.lastname@example.org!