The Do’s and Don’ts of First-Time Home Buying

Uzone.id – Who is not happy with the moment when you manage to buy your first house with your own efforts. The house will be a long-term residence, to raise a household, see children grow up, and other beautiful stories.

Well, here are the important things that you should know about what can and cannot be done when deciding to buy your first house.

The Do’s:

1. Do Know Your Budget

Before buying a house, do the calculations first. Try to evaluate your financial condition, starting from your income, expenses, savings, whether you have debt or not.

Then, use an online mortgage or mortgage calculator to estimate upfront and monthly expenses when buying a house.

Our advice, there is at least 50 percent of the remaining income in the account that is calculated after paying the house installment. It is to keep your balance sheet stable.

2. Do Get Pre-Approved for a Mortgage

Getting pre-approved for a mortgage is like getting a golden ticket—it shows sellers you’re serious. With a pre-approval letter in hand, you’re more likely to stand out in competitive markets. It’s also a great way to establish your buying power, so you know exactly what price range you can shop in. This step will save you time and help avoid disappointment later on.

3. Do Prioritize Your Needs

Your first home doesn’t have to be your forever home, but it should meet your needs for the foreseeable future. Write a list of what’s important to you—whether it’s proximity to work, good schools, or having a big backyard. Once you know your must-haves, it’s easier to stay focused and avoid being swayed by fancy extras that might bust your budget.

4. Do Work with a Real Estate Agent

A good real estate agent can make all the difference in your home-buying experience. They’ll know the market, help you find homes that meet your criteria, and guide you through the offer and negotiation process. Plus, their expertise can be a lifesaver when it comes to avoiding potential pitfalls like bad deals or hidden issues with the property.

5. Do Consider Resale Value

Even if you think you’ll stay in this home for a long time, life can be unpredictable. It’s wise to think about how easy it will be to sell the home down the road. Homes in desirable neighborhoods or with unique features that appeal to a wide audience typically have better resale value. Pay attention to trends in the local market, and consider how the area might change in the future.

6. Do Get a Home Inspection

Once you’ve found a home you like, it’s tempting to rush ahead and make an offer. But before you do, always, always get a home inspection. A professional inspector will check the property for any hidden issues like faulty wiring, plumbing problems, or structural damage. This step might seem like an extra expense, but it could save you from buying a money pit.

The Don’ts:

1. Don’t Rush the Process

It’s easy to get caught up in the excitement of buying a home, especially if you’ve been searching for a while. But rushing the process can lead to mistakes. Take your time, do your research, and don’t feel pressured into making a decision before you’re ready. It’s better to walk away from a deal if you have doubts than to jump into something you’ll regret later.

2. Don’t Skip Mortgage Shopping

Not all mortgages are created equal. Don’t make the mistake of accepting the first offer you get. Take the time to shop around and compare rates from different lenders. Even a small difference in interest rates can save you thousands of dollars over the life of your loan. Look into the different types of mortgages available too—some might be a better fit for your financial situation than others.

3. Don’t Make Big Purchases Before Closing

Once your offer is accepted and you’re in the process of securing your mortgage, avoid making any major financial changes. That means no big purchases like a new car, expensive furniture, or vacations. Lenders will take another look at your financials before closing, and any large purchases can impact your credit score or debt-to-income ratio, which could jeopardize your loan.

4. Don’t Ignore Additional Costs

There’s more to home buying than just the price tag. Besides your mortgage payments, you’ll have to consider closing costs, property taxes, insurance, maintenance, and possibly homeowner association fees. It’s important to budget for these extra costs so you’re not caught off guard later.

5. Don’t Get Emotionally Attached Too Soon

It’s easy to fall in love with a home at first sight, but try not to get too attached before you’ve done your due diligence. There may be issues with the house that you can’t see at first glance, or the deal may fall through for reasons beyond your control. Keep an open mind, and remember that there are always other houses out there if this one doesn’t work out.

6. Don’t Forget to Think Long-Term

It’s easy to get caught up in the now, but when buying a home, it’s crucial to think long-term. Consider how your life might change in the next five to ten years. Will the home still suit your needs if you start a family or change jobs? Will you still be able to afford the mortgage if interest rates go up? Thinking long-term will help you make a smarter decision that pays off in the future.