Want some first-time home buyer tips from a property virgin? Throughout my life, I’ve purchased various residences. I acquired a little starter property the first time around and wished someone had given me some advice. I overpaid since I bought it from someone I knew and thought they were offering me a decent price.
It takes time to buy a home, whether it’s your first or tenth. You must be willing to devote the time required to make an informed conclusion. Due diligence is the term for this procedure. It means that you, and only you, are in charge of ensuring that the arrangement benefits you.
You can’t sit back and expect the bank to look after you. Many homeowners are currently facing legal action as a result of their actions. They assumed that because they were accepted for a specific loan amount, it was all they could afford.
They never considered that the bank is interested in their financial situation’s data. It’s all black and white with them. They have no idea that you need a large sum of money every month to travel or get new shoes. Only you are aware of this. Make sure you check those issues before making a buy.
Another thing you should do before purchasing any property is to get it inspected. I would recommend locating a good inspection on your own rather than depending on your realtor’s recommendations. I don’t want to give the impression that you can’t trust your realtor, but like any other profession, some realtors are better than others.
If they’re in a hurry to sell, they might refer you to someone who can ‘fudge’ some inspection details. Although it is unlikely, locate your own inspector to be safe.
If a problem is discovered during the examination, assess it. Too many homeowners disregard common sense because they are attached to their homes. Allow your business mind to turn on instead. A minor issue can sometimes be used as a powerful negotiation tool. You might be able to negotiate a lower price (even more than the cost of the repair) or other concessions from them.
You should escrow your property taxes and insurance even if your bank does not need them. It’s preferable to ensure that you have the funds when you need them. I didn’t escrow one of the residences I owned and assumed that I could save the money. When the bills were due, you guessed it, I didn’t have them. I had to work quite hard to make the payments. Never, ever again. I’m going to escrow regardless of what the bank says.
I hope you pay attention to this first-time house buyer’s advice. The best tell in the world will be useless if you disregard it. When choosing a home, pay attention to your emotions, and your brain when it comes to the financials.