Are you looking to buy a home for the first time? Do you know what to expect from the home buying process? If you’re a first time home buyer, then you probably don’t.
You might have an idea, based off what your parents or friends tell you.
But until you actually go through the process, you won’t know everything about buying a home.
Well we’ve came up with a list of things that you might not think about before you enter the home buying process. These are some things that catch first time home buyers off-guard.
So don’t run into any of these surprises down the road.
Here are some things to expect during the home buying process.
We know you have the perfect house in mind. Or you’ve at least thought about the type of house you want. Just know that you’re going to compromise on some features.
You might have to choose between a garage and an extra room. Or maybe pick between a pool and a big yard.
There are some things on your list that you’re not going to get. The only way to get everything you want is to buy your own land and build your house yourself.
Remember to keep an open mind.
Look for a house that is well under your budget on a nice piece of property. This way you can do the renovations you want and increase the value of your home.
The Other Expenses
It’s important to make sure you have enough money to buy a home. And we’re not just talking about the down payment. Along with the down payment, there are usually closing costs that you need to pay to secure your house.
These costs typically include:
- Appraisal fees
- Credit report fees
- Loan origination fees
- Home insurance premiums
- Property taxes
- Title insurance fees
- Recording fees
- Attorney fees
- If you have established an escrow account with your mortgage lenders, you will need to make an initial deposit as well.
It’s important to know that the person who sells their house to you sometimes pays for some or all of the closing costs. But do not expect them to pay for it.
Plan on paying for the closing costs and try to negotiate the closing costs as part of your bid. If they do agree to help on the closing costs, think of it as a bonus.
Road Bumps Ahead
There are usually some road bumps you’ll hit on the way to getting your home. You might find yourself in a bidding war and you might lose out on a great home.
You might have the perfect house lined up, but then you find a leaking issue or asbestos during the inspection process. You might try to do a low-ball offer, but you end up insulting the homeowner and they don’t want to deal with you anymore.
Much of this depends on the type of real estate market you’re in. The more competitive the market is, the harder it’s going to be to buy a home.
It’s A Long Process
If you’re able to buy a home fast, then good for you. For the most part, it will usually take some time to actually own a home.
Plan on taking about 2-4 months to look at different homes and find the right one. But you should take as much time as you need to take. Finding a house that you can fall in love with is more important that finding a house fast.
The time it takes to get a home loan under contract takes about 30-45 days alone.
You get the picture. There are many steps to the process. And there are many people you’ll work with along the way. And if anything goes wrong during the process, then it will take even longer to complete.
Your Agent Is Human
Your real estate agent can make the home buying process much easier on you. But they aren’t miracle workers.
They know they can’t find everything on your list for your budget. But they try to find the best houses with the least amount of compromise.
If your realtor shows you over 20 houses… and you can’t find anything acceptable about them… then you’re probably the problem.
You’re not being realistic. Like we said earlier, you’re going to have to make compromises on what you want in your house. You’re not going to find everything you want. You’re going to have to choose which features are the most important to you.
So now there shouldn’t be any surprises during the home buying process. Don’t expect it to be a perfect home buying process. Everyone’s experience is different from each others.
The length of time it takes is different. The type of house you buy is different. The type of seller is different. And the real estate agents are different.
But this list will prepare you for anything you might not expect during the home buying process.