- Joined
- Sep 30, 2017
- Messages
- 233
My tips in home buying
1. Save money for a down payment. PMI sucks and is a pain to remove yourself (it's eventually removed automatically but not as soon as you hit 20% equity)
2. Take into account taxes and insurance. Use online calculators to estimate payments
3. Get a preapproval but remember that you don't have to spend what you approved for. Stick to a budget or you'll be house poor
4. Be ready for compromising if you are buying with someone else.
5. If you aren't married then you need serious conversations about what happens if you break up (or if purchasing with a family member or friend - if you don't get along), repairs are needed, how you'll split anything if you ever sell etc
6. Have THOROUGH inspections. Inspections ultimately guarantee nothing. Inspectors can only see so much (especially if the home is still being lived in). If it's an older home consider lead testing of the water. If there's a basement consider radon testing. Be detailed in you expectations of repairs from the seller or they may do the cheapest repair possible. Better yet just do the repairs once you own it. Unless there are substatial repairs needed they will likely not lower the price of the home
7. Be aware that even a fixed rate mortgage can change every year (your payment) if you taxes/insurance change. We changed insurance, didn't do it correctly and ended up with an escrow shortage. Not fun.
WHen you're truly ready it can be fun. Home ownership is a lot of work but if you know you'll be in the area for awhile (5+ years) it can be worth it.
1. Save money for a down payment. PMI sucks and is a pain to remove yourself (it's eventually removed automatically but not as soon as you hit 20% equity)
2. Take into account taxes and insurance. Use online calculators to estimate payments
3. Get a preapproval but remember that you don't have to spend what you approved for. Stick to a budget or you'll be house poor
4. Be ready for compromising if you are buying with someone else.
5. If you aren't married then you need serious conversations about what happens if you break up (or if purchasing with a family member or friend - if you don't get along), repairs are needed, how you'll split anything if you ever sell etc
6. Have THOROUGH inspections. Inspections ultimately guarantee nothing. Inspectors can only see so much (especially if the home is still being lived in). If it's an older home consider lead testing of the water. If there's a basement consider radon testing. Be detailed in you expectations of repairs from the seller or they may do the cheapest repair possible. Better yet just do the repairs once you own it. Unless there are substatial repairs needed they will likely not lower the price of the home
7. Be aware that even a fixed rate mortgage can change every year (your payment) if you taxes/insurance change. We changed insurance, didn't do it correctly and ended up with an escrow shortage. Not fun.
WHen you're truly ready it can be fun. Home ownership is a lot of work but if you know you'll be in the area for awhile (5+ years) it can be worth it.
