This blog post was inspired by the prepwork I did for my recent podcast recorded at Lancaster Newspapers Inc, but has some additional information not included in the recording. The podcast also has extra points, that aren't included in this post...so be sure to check out both!
Here is a list of eight things to consider when buying your first home:
Look into multi-units!
It’s much easier to purchase a multi-unit as your first home, because you can need 0-3% down. If it’s a second home, you’ll need at least 25%.
Decide for how long you’d like to live there.
Between living there 1 year, 5 years, or 20 years…your search criteria can vastly change.
Lay out a detailed budget.
If you don’t already live your life on a budget, purchasing your first home is a great time to start. This way you’ll know how much allowed spending you have each month, and how much extra you can put towards paying down your principle.
Maintain current financial status.
It’s best to keep your financial standing the same from the time you begin looking until you actually own the home. Opening up new credit, or making large purchase can cause problems.
Be sure to consider resale value.
While it shouldn’t be the most pertinent factor, you definitely want to aware of how easily the property that you are purchasing could be sold some day.
In this market, putting your best foot forward is a must.
It’s always smart to put your best foot forward when making an offer on a house…but right now it’s an absolute must. Most people find themselves in competing offer situations right now because housing inventory is not sufficient to keep up with current demand, so if you find the house you want you MUST put in your best possible offer right off the bat.
Many first time buyers come in with the expectation that the Sellers are going to pay for all of their closing costs and fix any repairs that the Buyer asks for. While sometimes that happens, it is not realistic to enter the transaction with those expectations in mind. Being realistic also pertains to knowing what types of homes are available in your price range.
Understand that you’re not going to know everything right away…you’ll learn as you go.
From knowing specifically what you want in a home, to having a good understanding of how the entire process works….I guarantee you’re not going to have all of the answers up front. That’s normal, and that’s what Realtors are here for.
I've kept these talking points extremely brief, so I wouldn't be surprised if you have some questions. Please reach out to me anytime via Facebook, email, my website, or my phone and I'll be happy to chat with you about the homebuying process. It's NEVER too early to begin!