As I said in the last post, the closing on the new home which is central to the theme of this blog, is tomorrow. We will introduce you to the house tomorrow after closing, but for now I want to just give a few pieces of advice that I learned to anyone who is planning on being a first time home buyer.
- Take a first time home buyer class before you ever begin. I took one because I had to, but it was long after I had begun the process. You can find them all over America, and the one that I took taught all about the process, the terms that you will hear, and even budgeting, and you will probably feel a lot more comfortable. You will also get a sense as to whether or not you are ready to buy a home.
- Be prepared to spend a lot more money in the process of purchasing the home that you ever thought. You will have to put down something called earnest money when you make the offer, which you cannot get back and will be applied to the loan, you will have to have a home inspection, and if you are buying a house in the country a well and septic system inspection. Also, if you are going to escrow your taxes and insurance (that is where you pay it monthly as a part of the mortgage) be aware that you will have to pay the first year out of pocket before it all begins. Also, you are most likely going to have to have some money to pay at the time of closing. All of this is beyond your down payment.
- Don't be afraid to hardball, especially in a buyer's market. If you are purchasing a home in a down market the odds are that the people selling are wanting to unload their home. That being said, don't worry too much about how long it takes to haggle and make them get everything straight and right before you settle. For instance, I wish I would have forces the previous owners of my home to label the circuit breaker box before we closed the deal. If there is nothing major make them fix the little things.
- Make sure that you shop real estate agents and bankers. I have been very, very happy with my realtor and banker, but I was lucky. Make sure that you are comfortable with yours because they are going to be giving you advice and helping you make decisions that will affect your life for the next thirty years or so. So make sure you trust them.
- Enjoy house hunting. It is definitely the most exciting part of the whole process, and revel in it. Even if you think you have found your house look at three more. And make sure to look at a couple that you could never afford because...hey...how many times are you going to get a chance to just go through other peoples' homes?
Those are just some of the things that I have learned through my process of buying a house. If I come up with any more then I will make sure to share them with you. Get ready to meet the house tomorrow.
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