Buying a new home is exciting, but if you’ve never gone through the process before, you may be in for a big surprise – and probably more than a few. When you aren’t experienced with the ins and out, your excitement can quickly turn into frustration. The
National Association Realtors recently released some of the latest numbers related to home-buying transactions showing that of all homebuyers, 34% are purchasing a home for the first time. If you’re thinking about becoming a part of that statistic, knowing what most were never told about shopping for a home can prevent learning the hard way.
It’s Going to Cost You Lots More Than You Think
If you’re renting, paying say, $1200 a month, plus perhaps utility costs, you have a pretty good idea of what you have to pay each month. If utilities are included, you know exactly what you’ll be shelling out when rent is due. But when you’re shopping for a house and the lender says the mortgage payment will be only $1400 a month, you might think, “Well, that’s only $200 more, I can easily handle that.” But you’re wrong. There are lots of other things to consider in addition to that payment plus utilities. You’ll need to pay for homeowners insurance, maintenance and repairs (something that’s inevitable), property taxes, and perhaps home association dues and even appliances.
That makes it difficult to determine your exact monthly costs as you never know when something is going to break, and there’s no doubt that total figure is going to be a lot more than just the mortgage payment.
You’ll Need to Limit Your Credit Card Use
Before you start shopping for a new home, you’ll need to hold off on purchasing any big items on credit cards, opening any new lines of credit, obtaining a car loan, etc. In fact, the more you can pay down your debt the better as the ability to get approved for a mortgage, and a good interest rate depends largely on
your credit score.
Even If You Don’t Have Kids or Plan on Having Any, Considering Are Schools is Important
Singles and couples who don’t have children and don’t plan to often overlook the schools in the area when shopping for a home. While you probably think it doesn’t matter, it will if you ever decide to sell your home. That’s an important aspect to buyers, with homes in neighborhoods that have access to good schools generally appreciating in value faster than homes in neighborhoods where schools are average are worse, whether you’re purchasing a house among
Charleston real estate or any other town in the country.
You Won’t Be Able to Resist Looking at Homes Higher Than Your Price Range
It’s only human nature to want something you can’t have, and nearly all people who shop for homes ended up looking at places that are out of their price range. While that’s all well and good, just don’t move forward with it. What’s even worse than living in a house that may need a few minor repairs is living in a nice home that you can’t really afford and eventually having to sell it when you don’t want to, or even worse, going through a foreclosure.
You’ll Probably Get Outbid
In a sellers’ market, or in areas that are hotter than others and likely to have cash buyers, you’ll probably get outbid, and more than once. While getting your offer rejected isn’t fun, keep trying - odds are that you will succeed.
