Purchasing a home is a life-changing event. Not only is it incredibly exciting, but it can be a rewarding experience for those homeowners who are dedicated to making their new home the wonderful haven of peace a home should be. Purchasing a home also comes with many lessons, five of which we’ll discuss here. If you’re purchasing a new home, keep in mind these five lessons you’ll probably have to learn along the way.
1 – Always Shop Around
Let’s say you’ve just purchased your home, and a friend told you about a bank that was offering significantly lower interest rates on mortgage loans. You went with the first bank that approved your application, and now you’re stuck with a higher interest rate.
During the home buying process, it can be pretty easy to get caught up in all the excitement of looking for a home. Guided tours, endless internet searches, looking through listing after listing; these things can be equally as exhausting.
Sometimes prospective homeowners forget to shop around for a loan as well. Different banks will offer different rates on mortgage loans, have different terms and conditions, and more. It’s important that you get quotes from many sources so that when you do finally find that dream home, you’ve got a pool of loan options to choose from.
Doing this will save you money in the long run, and ensure you’re getting the best rates and care from your lender.
2 – Always Get a Pre-Purchase Inspection
Every new homeowner’s nightmare is finding a serious problem with your new home after you’ve already closed on the loan. This can be expensive, stressful, and downright frustrating, especially if it’s a problem that could have been easily identified by a good home inspection.
Home inspections will cost you a few hundred dollars, and while this can seem like a hefty sum just to have someone look at your prospective home, those few hundred dollars can save you a lot of time, money, and stressful nights later on.
Home inspections are performed by professionals who know exactly what to look for in your home. They’ll inspect for things like faulty foundations, the condition of the heating and cooling system, ceilings, and more. These are essential items to a properly functioning home, and should not be overlooked. A new roof or foundation repairs can add up quickly!
3 – Have an Emergency Fund
You’ve purchased your dream home, had the inspection done, and everything looks great. That should be the end of it, right? Buying a home can be a great investment, but you’ll want to be sure that you take the proper steps to protect that investment.
While home owner’s insurance can certainly assist with any emergency problems like fire or water damage, exactly what’s covered will vary per insurance company, so it’s best to have a small emergency fund available for any unexpected repairs or replacements.
Things like a broken refrigerator, new carpet, or a paint job aren’t going to be covered by your insurance plan. Let’s face it, something is going to break or need to be replaced at some point during your homeownership. Be prepared for these unexpected expenses by making sure you’ve got an emergency fund available to cover the costs.
4 – Pay Attention to the Neighborhood-and the People Living There
Simply put, a neighborhood can make or break a new home. The last thing you’d want is to move into your stunning new house, all set for your future, only to find that your neighbors are less than friendly or there’s a high crime rate in the area.
The neighborhood should be a top concern when purchasing a home, especially if you’re going to raise a family there. Always check neighborhood statistics, and have a conversation with your prospective neighbors during your viewing to get a feel for their personalities and values.
You’ll want your home to be located in a peaceful, accepting neighborhood where you and your family will feel welcomed and safe. There truly is no price on peace of mind, so ensuring you’re settling down in the right area is just as vital as ensuring you’re getting the right price on your mortgage.
5 – Use the Right Broker or Agent
Using a real estate brokerage firm or agent gives you an upper hand when searching for a new home. These professionals are well-versed in real estate practices and will work to represent your interests during the home buying process.
It’s a good idea to have someone in your corner handling the business end of things when it comes to purchasing a home. Unfortunately, there are scams out there that thousands of people fall prey to every year. Having the right licensed agent to represent you will not only ensure you’re getting a great deal on an awesome home, but also that your interests and investment is protected and legitimate.
There’s nothing wrong with a little help, especially from an expert in the industry. Don’t roll the dice on an investment as complex and expensive as purchasing a home. Be sure to research the firm or agent you want to work with, and ensure that their reputation is top–notch before choosing to work with them.
Conclusion
Purchasing a home is exciting, but can quickly turn into a nightmare if you don’t take the proper steps to ensure you’re getting a good price, working with a great broker, and settling in a neighborhood you’ll love. Taking steps to minimize risk (and stress) can go a long way in the home buying process.