Buying That First Home
What to Expect
Thinking of buying a home for the first time is exciting and turbulent. Shalom Lamm believes each of us deserves one. Will you get that house you want? You have looked up what you can afford, run the figures past a real estate agent and calculated for yourself. You have decided what you can’t afford. meaning you want money for living a bit more freely. You can’t bid higher.
Some things to consider:
Don’t buy a car just before looking for a home.
Watch your credit rating.
Don’t change jobs.
Don’t consolidate expenses.
Don’t increase your credit
If you mess up and find you have financial trouble, Shalom Lamm believes that failure will help you learn and understand and then go forward with even more knowledge than before.
That Is the Home
Inevitably a real estate broker, or even you by yourself, have found a house that is slightly over your budget. Now it will really depend on making a down payment high enough to cover the extra expense if you don’t make enough. Saving that down payment has been a priority for some time.
Remember, that there is mortgage insurance to pay until your investment reaches 20% of the cost. That insurance is expensive. Also, taxes go up and up and so does the mortgage payment, not a lot but enough if the budget is too tight.
What to Do
You have found the house. Get an appraisal. Yes, really. Get one. It will cost you and be worth it. Make an offer after the appraisal if the sale can wait. Sometimes other bidders will interrupt your best plans. Get a home inspection and inspect it yourself. Walk around looking at the foundation and look up at the roofing. Look for termites though you probably will not see the devils. Check if the house is in a flood plain, sometimes it isn’t that clear. Check the sheet the real estate agent will give you about a week before closing for details of other expenses and the expected payments. Other expenses will be about 3% of the house’s cost. These are taxes, insurance, agent fees. Things like that. Check to see if there are association fees if the home is in an area with general maintenance.
What to Buy
Now you have the house and finally it is moving day. What do you need? You need a garbage can. Where else are you going to put all that extra packing material? You need cleaning supplies and a pail, gloves, sponges, chemicals. A broom.
Look at the windows. If you don’t have blinds so you can close them sometimes, you will need to get some curtains or blinds, something to cover those windows. Get a shower curtain if you don’t have an enclosed shower. If you are a coffee drinker, know where that machine is and keep it handy.
Stop and take a deep breath and relax. Everything is over. You’re finally a homeowner.