If you ask a homeowner what it was like to buy their first home, they’ll probably mention a few things they’d change if they could do it all again. While it’s impossible to know everything about the home-buying process beforehand, you can still prepare yourself for what lies ahead—and figure out how to avoid some potential pitfalls. Not sure where to begin? Here are some key pointers to keep in mind before starting your search for a new home whether on the mainland or here on the Crystal Coast and in Emerald Isle.
1. You are buying more than a home.
We all know the phrase “love at first sight,” and it can certainly apply to homes, too! Even if you step inside a home and instantly fall in love, it’s crucial to step back and consider the whole picture before making a purchase.
When you buy your first property, you’re investing in more than just four walls. It’s worth paying attention to things like a home’s location, neighborhood, and physical condition, too. Even if you find that open concept kitchen you’ve been dreaming of, it might not be the right fit if it’s in the wrong community or if the rest of the house requires out-of-budget repairs. It’s best to stay realistic and listen to your agent’s (and home inspector’s) advice. Remember, this is likely one of the biggest investments you’ll ever make, so spend your money wisely! Ask me how, I know.
2. Down payments are different for everyone
So many would-be buyers are scared of homeownership for one reason: the down payment. Traditionally, you’d put down around 20% on a home and spend anywhere from 10 to 30 years paying your lender back. However, you actually have more flexibility than you might expect.
Depending on your credit history, location, and occupation, you could be eligible for loans that require as little as 0% down. However, making a larger down payment means you’ll pay less interest to your lender in the long run. Be sure to shop around for the right fit and reach out to your agent with any questions—they’re always available to help you out.
Are you a self-employed small business owner? A real estate investor? A potential home buyer with a credit score hovering around 550? My mortgage broker, for example, has special lender options for all of you! And, not surprisingly, all these programs are different!
3. Home ownership comes with unexpected expenses.
Home ownership comes with unexpected expenses, especially right after you move in. When you’re setting a budget for your big purchase, consider adding some wiggle room to allow for any additional and long term costs. You don’t want to realize that you can’t afford your home after you’ve purchased it!
Wondering what kinds of expenses can come up? Inspections, homeowner’s insurance, prepaid taxes and other various closing costs, HOA dues, and repairs and new furniture like beds, washer and dryer, dining and living room furniture are just a few possibilities. You’ll pay for some of these before or at the closing, but certain recurring costs will have to be factored into your monthly budget.
4. Get pre-approved before you start looking.
Once you’ve made the decision to buy, it’s tempting to start looking at listings right away. However, you might want to press pause and complete an essential step before you start scheduling showings. Getting pre-approved for your loan will show sellers and agents that you’re serious about buying—and it can tell you exactly how much you can afford to spend.
Ready to start the pre-approval process? First, call me at 919-308-2292 or visit my website at www.EIHomesforSale.com for my free Guide to Obtaining a Fair and Equitable Mortgage. Second, stay away from online mortgage companies like Rocket Mortgage. You put all your personal information into a secure account but do you ever know where the Rocket goes with your information when it launches? Third, real estate is always local. So, it make sense to work with a local mortgage broker.
5. Enlist the expertise of a LOCAL real estate agent, like ME!
Everything about the home buying or selling process is LOCAL. Over the years, I’ve had the good fortune to turn my realty dreams into reality. I obtained my broker license and REALTOR designation to do the same for you. I live in Emerald Isle and when you get ready to purchase or sell a home, here on the Crystal Coast, whether waterfront, water view, or inland, contact a real estate agent who knows Carteret County, Emerald Isle and the surrounding communities.
Just because you can buy or sell almost everything with a couple of clicks on your phone or laptop does not mean that you should buy or sell real estate on the internet. The internet is fine for purchasing commodities. However, a real estate purchase here on the Crystal Coast is decidedly NOT a commodity. You need a team of professionals to make your realty dreams (and not your nightmares) a reality. That team better include a banker, an attorney and your real estate agent and that agent better be me!
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