Buying a new home can definitely be exciting, especially if it is your first home. It can be a wonderful feeling to know that you actually own the home and can do whatever you want with it. You can paint the walls, install a pool or completely change the landscape. However, owning a home comes with some drawbacks as well. Before you purchase a home, there are several things that are worth taking into consideration.
The Cost of Owning a Home Is More Than Just the Monthly Mortgage
Owning a home is significantly more expensive than renting an apartment. In addition to the monthly mortgage, you have to pay for insurance, utilities, property taxes and maintenance. However, it is still possible to own a home without going bankrupt. Rather than buying the biggest and most extravagant home in the neighborhood, choose a home that is more affordable and does not require a lot of maintenance.
Obtaining A Pre-approved Loan Gives You More Power
Before you start looking for homes, you should obtain a pre-approved loan letter in your hand. It shows the sellers that you are serious about buying a home and lets you make an offer as soon as you find a house you like. Another benefit of getting a pre-approved loan is that it will prevent you from shopping for homes that are above your price range.
There are Programs Out There for First Time Buyers
If you do not have the money to put 20 percent down on a home, do not lose all hope. There are a lot of programs out there that assist first time buyers with down payments and loan terms. It definitely is worth it to look into federal, state and local programs before looking at houses.
Beware of Foreclosures and Short Sales
Foreclosure and short sales often carry great deals for home buyers, but that does not mean that they donâ€™t come with drawbacks. For example, a house that is in foreclosure is normally sold the way it is, so the bank will not pay for any repairs. Most home owners who are in the middle of a foreclosure do not usually care about maintenance, so the home might need a lot of repairs. Foreclosure and short sales are also longer and more complicated than a regular home purchase.
Not Every Real Estate Agent Represents Buyers
It is important for you to know that not every real estate agent represents buyers. Some of them represent sellers and help them get the optimal price for their homes. If it is your first time buying a new home, you should consider working with a buyerâ€™s agent because they will have your best interests in mind.
As you can see, buying a home is not something that you should take lightly. It is important for you to take the time to consider the different factors involved before you buy one.