subject: Things I Wish I Knew As A First-time Home Buyer [print this page] When my spouse and I began the process of searching for and purchasing our first home, we were definitely clueless, especially because of the constantly-changing market conditions. It seemed like we couldn't turn anywhere for simple answers to our questions, and no one was giving us a reality check.
But we still managed to get into our lovely townhome after some frustration, and now here I am, able to give you--another first-time home buyer--an education! So listen up.
The most important thing you must consider as you prepare for this big step is all in the budgeting. Especially if you are young and desperate to get out of a shoddy apartment, you may convince yourself that you can easily afford the mortgage you may be facing, but you should be aware that interest rates can fluctuate at the last minute. Ours went up by half a percent before we were able to secure the loan!
Plus, there are other expenses that must be accounted for, like property taxes and monthly savings for maintenance, repairs, and general upkeep. Many young home buyers are persuaded that foreclosed properties are great options for them, but they often don't pause to consider the high cost of renovating these homes that are almost always in poor condition.
That is precisely what happened to my brother when he purchased his first home. The dilapidated single-story rambler needed repainting on the inside and out, landscaping, and repairs in the bathrooms and kitchen. He knew he could handle the mortgage, but his enthusiasm for sprucing up his new home quickly got him into even more debt.
Carefully consider the potential for easy resale for the properties you are considering. I live in a college town, so I knew that my townhome will eventually be sold without much difficulty, either by a young family or an investor looking to rent the place to other students.
Condominiums and townhomes are often perfect options if you are looking for something new and luxurious without the hassle of securing a single-family home. Much of the burden of maintenance--for the outside, that is--is placed upon an HOA, or Home Owners' Association, meaning you won't have to worry about mowing the lawn or weeding the garden.
You should bear in mind that there are pros and cons to dealing with an HOA, which you may have to face in a single-family home as well as a condo or townhouse. Not every association is created equal, and some charge steep dues in addition to assessments when something breaks down or needs servicing.
Ultimately, you need a skilled agent who has your best interests in mind. It was such a relief when we finally found a real estate broker who knew what we wanted and needed and was willing to work to get it for us.
