For most people, buying a house is one of their ultimate goals. You may or may not have plans on raising a family, but a home of your own is always a good investment. For one, real estate often always increases in value. Second, it is always better to own the home you’ve been paying for years. But before you get too excited with your house-hunting, there are a few must-knows you should learn about that not many homebuyers are aware of.
You Can Look for Another Lender
Many homebuyers would settle for the first lender who accepts their mortgage application. But there’s a good reason why experts encourage buyers to go lender-shopping. Know that you are not locked in with the lender who pre-approved your loan.
This is especially true if you feel like the first lender who is willing to back your mortgage loan is not a perfect fit for you. Know that you have the option to talk to other lenders. You won’t even have to worry about shopping for mortgage brokers as this won’t impact your credit.
So, be sure to explore your options. Talk to at least three mortgage lenders and ask them what is the best deal they can offer you. Watch out for predatory mortgage lender warning signs and always trust your gut before signing anything.
You Need to Think About the Other Costs
Think you got everything covered after considering the purchase price, closing costs, property taxes, homeowners association fees? In reality, there are a lot of other expenses you are about to handle once you become a homeowner. Be sure to include everything in your list.
For one, home maintenance is nowhere fun and easy. Many buyers would rather pass the chance to buy a cheap fixer-upper home in exchange for a more expensive home in tip-top shape. This is simply because home maintenance and repair can cost a lot of money.
While renting, the only maintenance and repair you handle are the very appliances and furniture you brought to your unit. It is one thing to pay for the spare parts for your Scotsman ice maker. Paying for a property’s maintenance repair is another.
So, make sure you keep in mind all the costs associate with homeownership. You might snag a mortgage with less than a 20% down payment. But surely, there will be other fees associated with the sale along with the other costs of homeownership.
Avoid Buying a So-So House in the Best Neighborhood
We often hear some real estate agents bragging about gaining equity by buying the worst house in a good neighborhood. But will all the fixes you need to tackle, you don’t want to end up buying a house you don’t like that much just to keep up with the surrounding properties. It is always good to have other options.
What you can do instead to invest in an up-and-coming neighborhood. Remember that in today’s housing market, new neighborhoods are created by developers. Instead of investing in a so-so house, you are better off buying a beautiful home you like in a good location.
Testing Everything During Closing Is a Must
You may be wise enough to bring in a home inspector before offering a deal. You might also be satisfied with the home inspection result. But one thing you should not forget doing is to test everything yourself during the closing day.
The document you will be signing during closing often indicates that everything is in working condition. But it will not hurt to check everything yourself. This will give you peace of mind knowing the seller did not do anything just to pass the home inspection.
A final inspection will also enable you to dodge major system repairs that the seller might be passing on to you. It is not uncommon for first-time buyers to handle expensive maintenance or repair costs well-hidden by the sellers. You also don’t want to end up buying a home that requires more work than what was agreed upon.
Moving Can Be a Headache, So Better Hire the Pros
Moving day may be an exciting day knowing you are about to start a new life in your own house. But that does not mean it won’t be a stressful day. With everything you need to bring and worry about, it can easily turn into your first traumatic experience in your new home.
This is one reason why it is best to hire professional movers during the moving day. Be sure to check their reviews and schedule the moving date at least a few weeks before the big day. For best results, find green movers to reduce the environmental impact when moving your belongings to your new home.
Making a home purchase can be both exciting and stressful. Since you are making a huge investment, it only makes sense that you want nothing but the best experience. With due diligence, you can make your first homebuying a less stressful one.