Things first-time homebuyers often overlook
When you’re doing something new, it’s normal to miss small details that make a big difference in the grand scheme. If that something is trying a new recipe or a DIY project, it’s not a huge deal. But if you’re buying your first home, every nuance can have a tremendous impact on your future. Here are a few things that first-time homebuyers may overlook and how to prepare for them!
The buyer’s out-of-pocket expenses.
Most people who are starting to look for a home know that you need a downpayment. The value of that downpayment varies depending on the type of loan you take out, but that’s not the only cash you’ll need to close. In your contract with the seller, there are a number of fees the buyer will have to pay – from attorney fees to taxes and escrow funds. How much money you’ll need will vary, and your mortgage provider should be able to work up a good-faith estimate for each property you visit. But knowing how much money you’ll need on closing day can help you narrow your search and find properties that meet your budget.
The details of a home inspection.
United Housing always recommends buyers have their future homes inspected. A home inspection can bring a number of issues to light. When you submit an offer with your REALTOR®, talk with them about making the sale contingent upon an inspection. This means that a qualified home expert will walk the property and highlight anything that is not working as it should be. The inspector will provide you with a detailed report that you can use to request repairs to the home seller. They may not agree to the repairs, but if your contract is contingent upon the inspection, you can then pull out of the deal. So, make sure you not only have your future home inspected, but that you use it to make informed decisions before you sign on the dotted line!
Fees that will increase your mortgage.
The community you choose to live in can change the fees that are added to your mortgage. Some cities, municipalities and counties have different property tax structures – meaning you may pay more or less to live in one community than you would to live in another one. If you’re looking at homes in a neighborhood with an HOA, make sure you know the annual financial commitment. These can vary dramatically depending on the amenities and resources the community provides. All of these seemingly small differences on a monthly basis make a big impact on your annual budget and housing expenses.
Being aware of these often overlooked aspects can help you make a more informed decision and set you on the path to a successful and fulfilling homebuying experience. If you want to learn more about the process, connect with United Housing, Inc. We offer Homebuyer Education courses, financial coaching, loan assistance programs and more to help set you on the path to homeownership.