Buying Your First Home? Some Tips To Keep In Mind!

Are you gearing up to purchase your first home?  It's an exciting journey, and no doubt you've already begun scouring the internet for tips and advice to guide you through the process.  With countless websites offering valuable insights like getting pre-approved for a mortgage or finding a reliable Realtor, there's no shortage of information out there.

However, as someone having assisted numerous first time home buyers since 1996, I've noticed that there are lesser-known tips that often get overlooked.  Drawing from my experience working closely with buyers, I've compiled a list of invaluable insights that could make all the difference in your home buying journey!  So, without further Ado, let's dive into these expert tips that could help you navigate the exciting world of real estate with confidence!

HOW CLOSE ARE YOU TO THE SCHOOLS?

When it comes to choosing the perfect location for your new home, proximity to schools is a factor that often weighs heavily on many homebuyers' minds.  Being just a few minutes' walk or drive from your kids school can offer convenience and peace of mind.  However, if you're without kids, you might want to reconsider being too close to the school grounds.  Living near a school can have its pros and cons, so it's essential to weigh these factors carefully to ensure you find the perfect balance between convenience and peace of mind in your new neighborhood.

WHAT IS THE PARKING LIKE?

Let me share a story about a client of mine who bought a house in the city.  The neighborhood seemed perfect at first glance, but there was a hidden challenge: limited parking.  With street parking that wasn't assigned, my client soon realized the struggle when neighboring households owned multiple cars and there was a bus stop nearby.  This highlights the significance of thinking beyond the aesthetic appeal of a property and considering practical aspects like parking accessibility, especially in urban areas where street parking can be a precious commodity.  It's a reminder that sometimes, little details can make a big difference in finding a home that truly meets your needs and enhances your quality of life!

ALWAYS DO HOME INSPECTIONS!

Even if you have decided not to request any repairs from the seller, or you are buying new construction, getting a comprehensive inspection is essential for a multitude of reasons.  It is also important to thoroughly vet your inspection to make sure they are licensed, experienced and reputable.  It can help you avoid unexpected surprises and make informed decisions about your investment.  

CAN YOU LIVE WITH THE HOUSE AS IT IS NOW?

Everyone has wonderful plans to do renovations and upgrades once they close on a house, but many times, it doesn't happen at all, or it happens a long time after closing!  So decide if you are able to live with the house the way it is today and until you have the money to do those renovations and upgrades!

MAKE SURE YOU HAVE EXTRA MONEY AFTER CLOSING!

When you go from renting to owning, you may have to make a few trips to Home Depot or Lowe's!  You may need to buy new trash cans, new shower curtains, cleaning supplies, light bulbs, etc!  Lots of little things that can add up to some bigger bucks!  

DON'T JUST GET PRE-APPROVED - GET UNDERWRITING APPROVED!

Pre approval is simply filling in an application noting your income and debts and an automated desktop underwriter does an initial look at your credit and issues the pre approval letter!  In this day of multiple offers, you want your offer to be the strongest.  By having a full underwriting approval in hand, your offer is much stronger and it will allow you to close much quicker!

YOUR MORTGAGE WON'T BE YOUR ONLY MONTHLY PAYMENT!

Most lenders will include your property taxes and insurance in your monthly payment - but not all will.  In addition, you may be living in a community with an HOA!  If your rent included utilities, you may now have to make monthly utility payments.  Make sure you understand ALL your monthly costs and you are comfortable with them!

HOMEBUYING CAN TAKE AN EMOTIONAL TOLL!

Navigating the real estate market can be emotionally taxing, with each offer and rejection feeling like a personal blow.  However, it's crucial to maintain perspective and trust in the process.  The perfect home may not reveal itself immediately, but with patience and perseverance, it's often just a matter of time before the stars align and the ideal property becomes yours.  So, if you find yourself caught in the whirlwind of bidding wars and dashed hopes, remember that you're not alone.  Stay resilient, stay optimistic, and trust that the right house will find its way to you when the time is right.

YOU'LL HAVE TO MAKE COMPROMISES!

Your first home will most likely not be your forever home!  And that is okay!  So know what your must haves and would like to haves are for RIGHT NOW!  And be prepared to adjust those lists as needed!

DON'T MOVE MONEY AROUND, CLOSE BANK ACCOUNTS OR BUY ANYTHING NEW!

Before you dive into your house hunting journey, it's essential to get your finances in order.  One crucial step is consolidating all funds you intend to use for purchasing your home into one primary bank account.  It's also crucial to refrain from making any new purchases, no matter how small.  By adhering to these guidelines, you'll ensure a smoother and more seamless home buying experience.

DON'T FOCUS ONLY ON THE SALES PRICE OF THE HOUSE!

Look at the entire monthly payment you will be making!  This would include any HOA dues, any pool memberships, etc.  

INTEREST RATES ARE NOT GOING BACK DOWN TO 2020 LEVELS!

For those who've been keeping an eye on mortgage rates, the fluctuations of 2023 followed by a slight dip in 2024 might have stirred hopes of a return to those ultra-low 3% rates.  However, it's essential to temper those expectations.  The reality is, we're unlikely to see a regression to such historically low rates!

NO NEED TO WAIT UNTIL YOU ACTUALLY HAVE A 20% DOWN PAYMENT!

Saving up for a 20% down payment can feel like an uphill battle, often stretching over several years.  Fortunately, local lenders have recognized this challenge and have developed grant programs and down payment assistance initiatives specifically aimed at helping first time homebuyers overcome the hurdle of a hefty down payment.

GIVE YOURSELF TIME - BE PATIENT!

It may feel like finding the right house, making an offer, getting an offer accepted, doing inspections, and finally closing on a house is taking a long time.  But patience is virtue and it will pay off when you finally do find the right house and get the keys at closing!  

I trust these tips have been beneficial to you!  Should you have any inquiries or wish to discuss further, please don't hesitate to reach out.  Let's arrange a meeting to explore strategies for securing your first home in Richmond.  I'm here to assist you every step of the way!