What You Don’t Know Can Cost You

If you’ve never bought a house before, you might assume that the process will be simple and straightforward: choose a real estate agent, look at a few houses, decide which you like best, get a mortgage, sign some papers, and move in. It’s actually much more complicated than that.

You Have to Choose the Right Real Estate Agent

Having a real estate agent on your side is important, especially if you’ll be going through the homebuying process for the first time. You might think you’d be better off buying a house on your own, but that could be an expensive mistake.

An agent will know the local market inside and out and will be able to answer questions, alert you to potential problems, and offer valuable insight gained through years of experience. Your agent can also negotiate on your behalf and help you get the house you want at a fair price. Without an agent, you might buy a home that doesn’t fit your needs or pay more than you should.

You can easily find several local agents through a quick online search, or a friend or relative might recommend someone, but it will take more work to find the agent who’s right for you. Some real estate agents frequently work with first-time homebuyers, while others focus on people who are looking for luxury homes or investment properties.

You’ll have to find an agent with experience helping people like you and interview at least a few individuals to find out if your personalities are compatible. As a first-time buyer, you’ll need an agent who will tell you what to expect and patiently answer your questions.

You Have to Find the Right House

Homebuyers sometimes make emotional decisions that they come to regret. Falling in love with a house because of the way it looks and not getting it thoroughly inspected can cost you dearly later.

A house that looks stunning might have serious problems, such as structural damage and outdated wiring, that are hidden from view. Those sorts of issues can create safety hazards, and repairs can cost thousands of dollars.

You’ll need to get a house inspected so you understand its condition. Once you have that information, you’ll be able to decide whether to move forward and buy the property, negotiate the price, ask the seller to make repairs, or walk away.

Many homebuyers assume that an inspector will note any and all problems with a house, but that’s not true. A standard home inspection doesn’t cover things like mold, asbestos, lead paint, and radon. If you want to find out if a property has any of those hazards, you’ll need to pay for additional inspections.

You Have to Choose the Right Mortgage

A home loan can help you achieve your dream of becoming a homeowner, but you’ll have to select the mortgage that best fits your circumstances and goals. The type of loan you choose will determine how much you’ll spend per month and the total amount you’ll pay for interest.

You can take out a mortgage through a conventional lender or a government agency, such as the Federal Housing Administration or the Department of Veterans Affairs. Each program has its own rules and eligibility requirements. You can take out a loan with a fixed or adjustable rate. Mortgage terms of 15 and 30 years are most common, but you might prefer a loan with a different term.

Having numerous options can give you flexibility, but you can feel overwhelmed if you don’t know how different types of mortgages work and you don’t understand their pros and cons. If you select the wrong loan, you might struggle to keep up with your monthly payments or pay more than necessary in interest.

You Have to Stick to Your Budget

Owning a house will involve a lot more than just monthly mortgage payments. You’ll have to pay for property taxes, homeowners insurance, maintenance, repairs, utilities, and possibly homeowners association fees. First-time buyers tend to focus on the price of a house itself, then get shocked when they move in and realize how much it costs to own the property.

Educating Yourself Can Save You Money

Buying the wrong house or taking out the wrong type of mortgage can put an undue strain on your budget and force you to make painful choices. If you’re struggling to cover housing payments, you might have to skip a vacation, delay your own retirement, or choose between paying your mortgage and buying food.

Don’t let that happen to you. Educate yourself before you start looking for a new house.

The First-Time Homebuyer Masterclass will walk you through the process, tell you what you need to know, and highlight common points of confusion so you don’t make the same mistakes that countless other homebuyers have made. Enroll today.