When you buy your first home, it can be both a wonderful and a terrible experience. Here are 10 things you don’t know when buying your first house.
1. There will be a problem
There is no perfect move. You will forget something or break something. You can hope that the setback is minor and chalk it up as “things just happen.”
2. Your conditions may not be met
Cleaning requests are one of the most difficult clauses to enforce in an offer to purchase. You can specify that ovens, refrigerators, and carpets are cleaned. If they have not been cleaned, you may be unable to do much about it.
If the promised major repairs are not completed, you will either be unable to take possession on the date you had planned or you will need to place your funds in escrow until the problem is resolved.
3. You won’t be able to buy a new house if you do not have the closing costs
Your lawyer’s fees must be paid at closing. Otherwise, your funds will not be released to the seller. Closing costs are usually between two and five percent of the total purchase price. Be sure to confirm this before closing day. The money you receive is on top of your deposit.
4. A good school increases the value of a house
A house located in a good district will cost more. The good news is that you will get more money for your house when you decide you want to sell it. This may not be a problem if the house you plan to buy is “forever home” and you do not have or are planning to have children. It’s still something to consider.
5. The neighborhood you live in is about to undergo a radical change
Your municipality might be planning to build a park, school or playground in your area. This can result in major changes within a short time, depending on your lifestyle. Consult the local administration or local representative. First, they can explain the plan. This second group will be able to tell if the timelines outlined are accurate. The information provided by them can be used to make a decision.
6. You must read the entire document
When you pay a lawyer for the review of HOA or condominium documents, it’s tempting to delegate this work. A close reading of minutes will help you learn more about your future neighbors and avoid unpleasant surprises.
7. Do not apply for credit when you are shopping for a mortgage
It may seem a good idea to apply for a credit card or a loan when you are about to purchase a home and you know that you will need to buy garden tools, grills, gazebos, etc. Do not do this unless it is absolutely necessary. This can have a negative impact on your mortgage pre-approval, and you may not even get it. You should wait until you have purchased your home before applying for more Credit.
8. You will need to earn “earnest money”
You’ll need around $1000 for every $100,000 of the house you have available to you when you submit an offer. This money will be held as a sign of good faith in an escrow account. If your offer is rejected, you’ll either get your money back or apply it to your downpayment. If you withdraw from the deal, this money may be forfeited.
9. Your future neighbors may be the best source of information
You should walk around the area where you would like to live. Speak to people you see gardening or mowing lawns. Start a conversation with someone and tell them you are thinking about buying. You can ask receptive people about the neighborhood, their experience there, and how much time they plan to stay. You may not like your backyard if you find out that the neighbors are party animals and blast music all summer long.
10. Find out if you are entitled to rebates
First-time homeowners may be eligible for rebates. You may also qualify for other rebates from municipal, state or utility providers. Investigate early. If you are going to receive a rebate covering some or the entire cost of insulation, it may be more sensible to invest in the attic insulation rather than an air conditioner. Some regions offer rebates for newer, energy-efficient appliances. If you don’t do your research, you won’t find out.
You can get help from a good agent to guide you through the process of buying a home. You’re now ahead of the game, thanks to these 10 facts that nobody tells. Now you can focus on the offer strategy instead of the fundamentals.
