Getting ready to buy your first home?  Perhaps you are or maybe you’re not quite there yet, but have plans to do so in the near future.  It pays to be prepared and limit the stress involved.  First time buyers, here are the most important things to consider before buying a new home:

Make Sure You Are Ready.

While the merits of homeownership are often touted as the only responsible way to go, it’s also easy to get yourself in deeper than you bargained for.  Don’t overbuy or overspend unless you really want to struggle every month scrapping every last penny together to make the mortgage payment.

Stick with what fits your budget – the good news is you can move up in house as your equity and income increase after a little bit of time passes.  There’s no shame in renting for a short period of time until you can get your finances set up the way they’ll need to be.

Realize the Extra Expenses of Homeownership.

It’s not just the mortgage payment.  It’s not only the property taxes.  It’s not the mortgage insurance.  You have a pretty good idea of what those expenses will run going in to a home purchase.  And sure, home ownership even opens up a whole new world of tax deductions and so on.

But planning for maintenance costs, repairs, updates, increasing energy costs – those are all things that can skyrocket when you’re least expecting the expenditures.  Are you prepared for the real costs of homeownership?

Don’t Rush Into a Purchase.

I’ve seen so many first time homebuyers settle on a home they’re not totally happy with only because they were forced to make a purchase quickly.  Give yourself plenty of time to check out what’s available in your market at your price range.  Even if you’re not ready to make a purchase, begin looking at open houses and keeping an eye on the market so you can have some ideas.

If your lease is running out, negotiate a month-to-month clause just in case, so you’re not forced buy before you’ve completely made up your mind.  However, do get pre-approved for your mortgage in order to be ready right away if you find the perfect home – that’s one less obstacle out of the way. 

Buy the Neighborhood.

If you’ve found a house that you really like and you’d like to place an offer, do one thing first – check out the neighborhood.  Is it an area in decline?  Are all of the properties well kept?  Are there a lot of renters versus homeowners in the area?  Meet the immediate neighbors and make sure you’ll all be compatible.  It’s so important to have good neighbors who are compatible with your style of living.

Realize How Much Work Is Involved.

Yeah, the fixer-upper has a price tag that is just right.  And sure, I know you’re a weekend warrior and love to tackle projects.  The thing is, many don’t realize just how big the projects are – from expertise required, to labor intensity, to straight up financial costs.  If you’re not absolutely sure what a project will entail, it might be best to stick to homes that only need minor cosmetic updates.

Hopefully these practical words of the wise hit home with you.  There’s more to come in the future… Stay tuned!