Buying your first home is a significant milestone. It’s a process that few truly understand until they’ve experienced it first-hand. Many folks have learned valuable lessons along the way. Here are the top things first-time homebuyers wish they had known before they dove into the unknown.
Set Financial Limits
One mistake many first-time homebuyers make is spending at the top of their mark. Just because you get approved for an amount greater than what you asked doesn’t mean you need to spend it. Set a limit and stick with it. Nothing is worse than being stuck with a mortgage that you either can’t afford or that causes you to become “house poor.” This means that you spend most of your income on monthly mortgage payments and cannot afford much else. There will always be hidden costs, repairs, and other factors that will require extra money each month, and it is essential to plan and budget accordingly. Having the willpower to say no or pass on something you can’t afford is a difficult practice, but one that will protect your assets for decades to come.
Be Ready to Move Fast
Many first-time homebuyers are surprised at how swiftly the process moves once an offer is accepted. A home inspection can lead to several more inspections from many different service providers, depending on the house’s condition, and you must be prepared to get it all done within a short window. Where you live will determine the amount of time buyers have to perform their due diligence.
See Something, Say Something
If something in the home doesn’t look right, smell right, feel right, then say something to your REALTOR®. Our gut instincts are often our best defense when making critical decisions. Do not overlook something for fear of upsetting someone or missing out on the property. Chances are you won’t want the property anyway if there are water or plumbing issues. And once you sign those papers, those problems become yours. It is always best to ask questions if you have concerns. Put repairs on the seller to fix before the paperwork is signed. If they refuse, you’ve dodged a bullet and can move on to something else that won’t cost you money to repair down the line.
Don’t Worry About the Opinions of Others
This is another gut instinct. While family and friends have the best intentions, they are not always right. Nor will they have to live in the home you’re buying. Once you sign on the dotted line for your mortgage, that’s it!
Get a Home Warranty
It’s a hard realization for first-time homebuyers when they can’t call the landlord to fix something. The best way to protect yourself is through home warranty insurance. Now that the market is beginning to level out, sellers are more willing to offer 12-month home warranties as part of closing. It’s always worth the ask. Even if the seller declines, getting one on your own is a good idea. Most significant repairs will only cost a $75-$100 deductible rather than the whole amount up front.
Work With an Experienced REALTOR®
Some folks choose the ‘For Sale By Owner’ route, thinking they’ll save money by skirting REALTOR® fees. Sometimes, the savings do not outweigh the hassle. First-time homebuyers need an expert by their side for guidance. Things move fast once an offer is accepted, and having someone in your corner who knows what to look for, what to do, and how to get it done is essential.
There are many moving parts to buying a home. At Prism Realty, we focus on what we can control in the market to put you in your dream home with minimal stress. Contact Us to answer questions about Austin area homes, neighborhoods, or the current real estate market – info@prismrp.com | 512-676-5842.