Buying your first home is one of the most exciting and stressful parts of becoming an adult. It is also one of the largest financial decisions you will ever make. It is important to know what to expect when buying your first home so you can plan for each step of the process. Continue reading below about ten things to know when buying your first home.
1. It is Important to Hire a Realtor You Trust
Choose a realtor that you know will be with you throughout the entire process and will help you in negotiating prices. Your realtor should not solely be focused on their commission. Choose a realtor that will help you save money.
2. Buying A House Under A Contract
Every contract is able to be negotiated, and that includes home buying contracts. Anything can be changed to best fit your needs and your desires. It does have to be agreed on by both parties, however.
3. Consider Your Future
Buy a home that you will want to commit to for the long term. Imagine what you hope your life will look like in the future and purchase according to this dream or goal. Be sure to not stray too far from your budget, however.
4. Your Home is Under the Terms of All of Your Life Commitments
Getting married and having children are two of the largest commitments you will make other than buying a home. Make sure that just in case things go wrong, there is a plan in place for the home. Be sure to have an agreement pre-written just in case there is a death or divorce.
5. Home Buying Should Consider All Costs
It is important to consider every cost of buying a home. Cosmetic repairs, such as painting a room, are inexpensive. If there are significant repairs that are needed, however, factor this into your cost of buying the house.
6. You Should Always Buy Around Your Budget
Do not purchase a home you cannot afford. This may be significantly lower than what the lender believes you can afford, however. Be sure you are calculating how much your payments will be, including interest and insurance.
7. A Home Costs More Than the Listing Price
As has been mentioned for the last two points, a home will cost more than the purchase price. There will be costs of repairs. There will also be tax payments, interest payments, and insurance payments to consider.
8. Housing Laws Have Changed
Student loan debt is considered when purchasing a house, whereas it used to not be. Make sure you are upfront about your student loans and have all documentation of your repayment plan in place to show the lender. Just know that one to two percent of your loan balance will be documented in your debt status.
9. The Tax Deduction is Not That Significant
Do not buy a house that is significantly out of your budget just for the tax deduction. Most taxpayers only claim the standardized deduction in which you will never see the specific amount that is paid to taxes and interest. This will go down the longer you own your home as well.
10. It is Not for Everyone
Buying a house is not for everyone. Do not feel like you have to keep up with the rest of society by buying a home. It truly is a large financial commitment that you have to consider for a long time before engaging in the commitment.
There are many aspects involved before even obtaining mortgage loans. Follow these tips and this information above when considering buying a home. SCCU can assist you in determining the best mortgage loan for your home buying needs.