Buying your first home comes with stress. It’s an unknown thing and can become very emotional quickly. When you’re ready to start shopping for your first home, keep these ten things in mind.

#1 – It’s a Process

You won’t magically find the perfect home, put in an offer and move in within a few days. Shopping for a home is a process and you need to be prepared to be patient.

#2 – Your Hand Will Get Tired From Paperwork

Buying a home requires a ton of paperwork. You may end up signing hundreds of papers at the closing table.

#3 – You Don’t Actually Pay Your Real Estate Agent

Many first time buyers can be a bit confused when they find out they don’t pay a real estate agent. The seller will be the one paying the real estate agent’s commission.

#4 – Your Credit Will Matter

You may have read a few articles on buying a home without good credit, but your credit still matters. It will help to determine whether you get approved for a mortgage and the interest rate. Even a small change in the interest rate could save or cost you thousands of dollars over the life of the loan.

#5 – Title Insurance is a Must

Buying a home without title insurance isn’t a smart move and most mortgage companies won’t allow it. Title insurance protects you as the buyer and makes sure you get a clean title to the property.

#6 – Pre-Approval is the Real First Step

Many thing house hunting is where the process of buying a new home starts, but it’s not. You need to talk with your lender first and get pre-approved for a home.

#7 – Closing Costs Have to be Paid

Many new buyers are surprised to find out they have to pay closing costs. While it’s possible to negotiate this cost with the seller, you will likely need to pay a portion, if not the full amount. Don’t let this take you by surprise.

#8 – Don’t Count on the Taxes Staying the Same

Taxes will go up at some point, which will cause your escrow payment to go up. Your escrow payment is an amount meant to cover both home insurance and taxes when they become due. When these bills go up, your escrow will also go up.

#9 – Cash in the Mattress Won’t Help You Much

While having some cash saved in a safe at home or in your mattress might give you a down payment, it’s better to have it in the bank. Lenders want to see that you’ve had the money and have been saving for a while. This helps to make you a lower risk buyer because you can document the cash you have and show how much is really there.

#10 – You’ll Likely Lose Out to Other Offers First

When the market is filled with buyers, you’ll often make multiple offers on homes before you get an offer accepted. Be prepared for this as it can be easy to let your emotions take over when you don’t win the bidding war for a property you really like.

Shopping for a home is a process and you should always hire a good real estate agent to help you. With a good agent by your side, you’ll be better prepared for the unique things you might encounter.

If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. 704-650-5707 | AnnaGrangerHomes@gmail.com