5 Things All Home Buyers Should Know Before Buying a Home

Buying a home can be exciting, but it can also be scary if you’ve never done it before.

Here are our top five tips you should know before making the leap to homeownership:

#1. Understand that your mortgage payment will be more than principal and interest. Many times borrowers think the final amount they will have to pay each month is the principal plus the interest to an amortized loan, but this is hardly the case. Consider the additional cost to homeownership including taxes, insurance, any home owner’s dues and also factor in the cost of living. If you’ve rented in the past, your utilities were probably already included in the rental price. You will need to consider utilities such as gas, electricity, sewer, water, and trash in addition to any taxes, insurance and dues paid on a monthly basis.

#2. Using a buyer’s agent can save you thousands of dollars. Many first-time home buyers don’t realize the importance of using a buyer’s agent to purchase a home. They simply speak to the listing agent and purchase the home through them. Using a buyer’s agent is free for home buyers and the agents focus solely on finding the right home for the right price.

#3. Have a professional inspection performed. Many homebuyers try to cut corners and save a few extra dollars by having a friend or relative complete the inspection. The problem with this is that most homeowners don’t know what to look for and can’t give advice on future repairs and costs. A home inspection is one of the only costs that requires you to pay out-of-pocket at the time of the inspection. They typically range from $300-$800 and are well worth your time and investment.

#4. Consider the location even for resale value. If you plan on ever selling, now is the time to consider your new home’s resale value. Ask yourself these questions: is the property in a good school district? Is the neighborhood quiet? Do you have an easy commute? And do you think the home would appeal to a wide variety of buyers? These are things to consider even before purchasing the home.

#5. Understand there is a quiet period between the home inspection satisfaction and closing. This is when most buyers call for information, and status updates. But remember, you have several parties involved all working together to make the home close on time. Escrow, title, banks, lenders, sellers and agents are all involved in the transaction.