6 Lessons to Learn Before Buying Your First Property

Buying a property is one of the biggest purchases we make in our lives, and it can be equally complex. That’s why navigating your first-time property buying process, no matter if you’re going for it solo or as a family, requires a lot of research, questions, and time in order to gain as much insight and knowledge as possible.

People who simply rush in and buy are later left to deal with the consequences which can be pretty hard for a decision this big. That’s why we’ll share some lessons you need to learn before you put your signature on the dotted line.

1. Be Aware of What You Can Afford

Let’s be honest - in today’s capitalistic society, no one can buy a home right from their own pocket. We all need home loans, so the first thing you’ll do is to check for the size of the mortgage you can qualify for. Now, there is simple math behind all this - it includes insurance, taxes, all of your other bills, and mortgage amount. But what people are not counting on - and what could seem like a very pleasant surprise - is that banks are quite often willing to give you much more than the initial calculation. Naturally, the first impulse of every home buyer would be to enthusiastically conclude they were wrong. But the thing is that usually, you weren’t wrong, in terms of what you can truly afford. Once you come to realize what you are comfortable paying every month, that amount could be much, much lower. That’s why it’s crucial to investigate every aspect of the home loan process before you make the final decision. Your affordability is not something loan officers, real estate agents, and banks should tell you, but something you should tell them.

2. Be Aware of What You Can Afford LATER

Once you’re done with the first step, there’s one more thing to consider in terms of overall affordability - the expenses you may have later on. We never know what life will throw at us. Let’s say you’ve found perfect house for you and your partner while both of you were working. What if someone loses a job, or if there’s another small member of the family arriving in a year? Expenses can pile up in an instant - bigger car, nanny, private school, etc. There will inevitably be some new expenses and in order to prepare for them, it’s crucial to make sure your mortgage leaves you with some room for financial maneuvering.

3. Don’t Skip Agent Interviews

Let’s take a look at a pretty common scenario - you’re eager to start looking, but you don’t have an agent yet. That’s why you simply call the number on the sign. He quickly arranges for a showing and provides you a list of other houses you should see even quicker. He seems like a really nice guy and now you have an agent, right? Wrong. There couldn’t be a worse way to hire one. You don’t know how many houses they sold, and you know nothing about their experience. If you want a real estate agent who will really be helpful, you need to perform interviews where you’ll need to ask them relevant questions. Many home buyers interview only one agent before the hire, but this is not something you should be rushing into - always perform several interviews before you settle for one. it should also be wise to start with a personal referral and if that isn’t available you could always ask a prospective agent for a couple of references.

4. Don’t Fall Under Pressure

This is one of the biggest traps in the home buying process. The reason is simple - real estate agents are highly trained salespeople who are working for a vendor, and their interest is not only the highest possible price but also a quick sale. That’s when it comes to the trick of their trade - you receive the great news that they’ found the perfect house for you that you need to see right now. And usually it is perfect - location is just right, it’s maybe just a few extra dollars per month in the mortgage payment, but the resale would be phenomenal. There’s just one thing - some people have already seen the house and you need to make a hasty decision if you don’t want it snatched away. That’s how you sink under pressure - you’ve only seen the house for ten minutes, you’re unfamiliar with the neighborhood, and you practically need to sink all of your money right away. Hasty decisions can easily turn into big mistakes so, if you feel even slightly rushed, you should back away. You need time to consider all options objectively and properly, so it’s mandatory not to let any circumstance or anyone to pressure you.

5. Don’t Listen to Your Heart

While there are many situations in life where you should listen to your heart, buying a property is definitely not one of them. When we’re looking for homes they’re all usually a step up from our present situation, so falling in love, at first sight, is very easy. If you don’t leave your heart at the door you’ll be completely intoxicated by the idea of spending time in that house by the time the money talks start. Every truly important thing such as required down payments, will seem inconsequential if you start shopping with your heart. That’s why the only thing you should be guided by is your monthly budget. Skipping houses you know you’re not able to afford is also a smart precaution against disappointment.

6. Ask Questions And Look Everywhere

Now that your mind is in charge, it’s time to start asking questions. Are all appliances working? Is everything fine with the water pressure? Is the air conditioning/heating working okay? Are all the toilets flushing properly? And the list goes on. Don’t be afraid to ask anything that comes to your mind, and don’t stop at the questions. Start searching for possible hidden surprises, take a flashlight if you need one. Move furniture around, look under the beds. Knock on every wall to check if they sound hollow. Smell for animal-related odors and mold. Open the dishwasher and dryer - there may be some pests living there. If homeowners have some objections to you sniffing around, they probably have something to hide. The ones offering a fair deal shouldn’t have any objections. For this reason, it’s useful to have a handy home inspection checklist for every house you tour.

The only person who can really know how much you can afford is yourself so perform your calculations carefully with future expenses in mind. Real estate agents will be your allies only if you pick them right, but keep in mind that pressure is a part of their trade. Instead of falling in love with a property, treat it like a suspicious enemy territory until proven otherwise. Never rush in, take your time, do your research and be patient. It won’t happen overnight, but your patience and due diligence will be rewarded when you eventually end up taking over the keys for your very own home.