As I said yesterday, this house buying thing is a roller coaster. However, I’ve heard of much worse situations and I’m grateful that ours has gone relatively smoothly over all. The waiting just stinks right now.
So, while I wait, I thought I’d share what I’ve learned while on this crazy ride:
1) Find an amazing Realtor. I contacted several Realtors online before I found the one for us. The others just sent me quick little emails saying how excited they were for my decision to purchase a home and sent me a link to start house hunting. But wait, we weren’t ready to buy a house yet! At that point we were only wanting to wet our feet and prepare for a purchase months down the road. It was more about educating ourselves versus jumping into a new home asap. It felt very impersonal and like they just wanted a quick sale to up their commission (tip to Realtors, that’s not a good strategy).
Thankfully, I stumbled upon our chosen Realtor accidentally on my local Mommy board (yet another reason I love it!) when she replied to a question I posted. I truly think our Realtor was a god-send for us, we just clicked from the moment we started emailing and from the beginning she was willing to answer questions thoroughly, get to know us as a couple, and help educate us on the process before diving in. (If you live in NC/SC and need a fantastic Realtor, email me!).
How do you find an amazing Realtor? Word of mouth. Ask your friends who they used and why they liked them. Ask on local mommy boards, ask on citydata.com, etc. And make sure you talk with several Realtors before deciding, you’ll know when you’ve found a “match.”
2) Research. Research. Research. I cannot tell you how important it is to research the areas you are looking at to live in. Research the schools, even if you don’t plan to have kids any time soon because of resale value. Research the crime rates and pedophiles. Research the cost of living in the area, like taxes.
We were thisclose to putting in an offer on a townhouse that was an amazing deal…until I decided to pull up the crime reports. Yikes. We instantly knew this was not the place for us and knew to rule out this entire area in the future, making it easier to pick where we wanted to focus our search on. Research helps you zoom in your focus. Like I said, I asked around on citydata.com and my local mommy boards, but also looked at the county/state crime records that are available online. And of course, our Realtor had some information as well.
3) Educate yourself. There is SO much to know about buying a home. There are lots of terms related to the banking world that are important to know and understand before signing anything. Our Realtor was amazing at helping us understand what we needed to know, and still, I learn something new everyday about this process. We had to take this quick online course for our loan and I wish we had seen this in the beginning. It’s a great over view of options and important things to know. http://www.freddiemac.com/hrc/
4) Keep an open mind. You hear it all the time, you can’t everything you want, and first home buyers tend to think they can. There’s got to be compromise some where, whether it’s in the location, the price, the size of the bedrooms, a gas fire place, granite counter tops, etc. Something has to give. Setting priorities is a must. For us, location and price was at the top. We wanted great schools, safe location, and close to Mark’s commute and thankfully we found the perfect place for us that fit those basic needs.
Also, if your Realtor suggests an area or a house that you hadn’t thought about before or don’t think you’ll like, test it out anyway. In the area we chose, we never even considered it and it turned out to be our dream spot. Keep an open mind to their suggestions, they may have something great to show you that’s outside your imagined box.
5) The Cost is More Than Your Monthly Mortgage. Our initial budget was a small one because from the start we wanted to have room for the extras in life, like traveling and going out on date nights, buying me a new car, and having another baby. But for a a brief stint, we explored what a higher budget could get it. Yes, it was appealing to add in a bonus room, a garage, and a bigger kitchen. But when we crunched the numbers? It just caused stressed. Technically we could have afforded it and were approved even higher, but when we included the cost of utilities and HOA fees, it pushed us into an uncomfortable range. Ask lenders for Good Faith Estimates to help you decide what you are paying monthly and include utilities/all expenses on top. Also, think about what you need for a house, like a washer and dryer, furniture and blinds (even small things like curtains add up FAST). And of course, the closing cost fees. Even if you have 100% financing, there are some costs that need covered. Make sure you’re prepared for that.
6) Have Patience. In our small budget, demand of a great location, and still having enough room for our family, it could be discouraging at times to go into home after home and realizing we weren’t comfortable paying the price or just didn’t love the house. Persistence and patience to keep trying were important. Thankfully, we were/are in a place we don’t have to move out quickly so taking our time to find our perfect home (and now, to move in!) wasn’t rushing us.
The same goes for after you’ve found your home. It’s nerve wracking and it takes patience at times because no road to a house is completely paved smooth from what I hear.
7) It’s a Roller Coaster. It has many highs and many lows. From trying to find your house, to waiting to hear back from the seller about your offer, to getting the financing together, to hearing the results of the inspection, to waiting for the closing. Expect things to come up and hang on to your seat. It’s a fun ride, that’s for sure, but some times things can be intense!