Buying a home can be one of the biggest purchases you will make in your life. With that said, you want to make sure you're prepared, educated, and ready to make the commitment. Here are some things to watch out for when starting the process.
1. Dealing with Lenders
- When borrowing money you want to make sure you calculate your total monthly costs. Before you house-hunt, find out the tax and insurance rates for homes in your price range. Don't forget about condo fees, loan, tax, and insurance payments.
- Another important factor is to shop around! You want to talk to at least two lenders to make sure you are getting a competitive loan. Remember interest rates can vary not only daily, but sometimes a few times a day! Make sure your lender is giving you the highest quality advice.
2. Find the Right Lawyer
- Real estate law varies by state. It also can get even more localized by the neighborhoods. You want to hire a real estate attorney in or near the town you want to buy in.
- The most important aspect of choosing your home inspector is to shop around and ask for referrals. Home inspectors know a lot about houses, but they can't see inside the walls or dismantle the house. They can't even give you an estimate. (That's what contractors are there for) Both are very important to the purchase of your home, so you want to make sure you're getting the best for your money.
4. Our own Mistakes
- The biggest thing that you need to understand as a buyer, is how much time and how big of a commitment it is to buy a home. A lot of work is put into making your final decision. Expect some stress, and remember to give yourself some slack! Finding the right agent to balance out your personalities is one of the best things you can do in successfully buying a home.
- The location of your home is the one thing you cannot change. You want to make sure you really love the location and want to live there. Don't just settle; you could be living there for a very long period of time. Don't forget to consider different weather conditions. Is that hill up the driveway going to be too much of a pain in the winter? Can you handle living with the sounds of the city nightlife? You decide.
- Make sure you do out all your calculations. When dealing with such large numbers such as $500,000, another 2 or 3 thousand doesn't seem like much. However, at 6.125% interest, its about $30/month, but becomes $10,800 over the term of the loan. It pays to do out all the calculations!
Do you have any stories to share that would help our fellow buyers? What were your experiences?
Happy Hunting! Remember Tory Row Real Estate is always here to help in any way we can!