1. Before starting your home search, it’s important you know how much you can afford to spend. Start with a plan. Don’t let your imagination take over and don’t let what you see from friends’ houses drive your budget. Make a list of all your monthly expenses. It’s important for buyers to get pre-approved for a loan prior to shopping for a home.
2. While it is tempting to throw everything you’ve got at your offer to stay competitive, having money left over after you close a home is important. If a home purchase leaves you with no liquidity, it might be worth considering waiting to increase your savings or lower your price point.
3. The down payment tends to be the biggest financial hurdle to owning a home, but there are many other costs that pop up such as home inspection, appraisal, notary fees, etc. There’s also the move in costs, new furniture and cost of utilities.
4. Buying a fixer upper property might allow you to snag a larger home but it can come with some huge risks. If a home needs renovations, factor that into the total cost of buying. Renovations are not as seen on TV. A private loan for repairs may be difficult to secure after you just took out a mortgage. Make sure to ask the lender what options there are for renovations during the pre-approval process.
For any questions on buying a home, please give us a call or send us a message.