8 Things I Wish I Knew Before I Bought My First Home
In 2021, after months of searching and countless home tours, I purchased my first house. It was love at first sight—a single-story home painted in a deep blue, with natural light pouring into each room. I spent hours painting with my family and shopping for the perfect sofa that would accommodate for hours of comfort. I truly felt like I was living the dream—for about a week.
Once I was situated in my new home, I began to find all the mistakes I made while I was in the middle of my home-buying process. I was flooded with regrets: The rooms were too small; I spent too much on closing costs; I didn’t do enough inspections. While these thoughts are normal after making such a large purchase, they can be avoided with these eight pieces of advice for first-time home buyers.
Don’t Be Fooled By Appearances—Pay Attention To Details
When you walk into a home with freshly polished wood floors and marble countertops, it’s easy to focus on cosmetics rather than what’s underneath. While that home may have the farmhouse sink you’ve been dreaming of, it could also have a myriad of hidden flaws that you may not have considered, like plumbing problems, structural issues, or poor electrical work. These technical issues can be prevalent in any home—whether it’s a new build or decades old. To avoid having to deal with these issues after you sign your deed, have multiple inspections done.
A home inspection examines each of the major systems of the home, including the HVAC system, foundation, plumbing, and electrical. These inspections are done to help uncover any problems that you may encounter after you move in; however, some inspectors may not have the same specialized knowledge and expertise as other craftsmen.
You can hire specially trained craftsmen, including plumbers and electricians, to inspect your potential home and point out elements that may cause you future troubles. These additional inspections can help you to avoid major expenses that may incur once you’re living in the home.
What I Would Do Differently
If I could go back in time, I would hire my own plumber to inspect the home. My house was slowly renovated by its previous owner who, as it turns out, loved DIY projects. One of those DIY projects included the entire plumbing system to my home, which quickly resulted in a hefty expense for me.
During the first brutal winter in my house, my shower suddenly quit producing a steady stream of water. Four plumbers and $1,000 later, we discovered the pipe to my shower is located on an exterior wall with no insulation. So, if the temperature drops below freezing, my pipes will easily freeze.
Save For Closing Costs, Too!
When you’re thinking about buying a home, you need to save up enough to cover your down payment and closing costs. These costs are the various fees and expenses that you’ll pay in addition to the actual price of your home.
Closing costs cover a wide variety of essential expenses, such as lender fees, title fees, inspections, and appraisals, to name a few. While all of these services are essential to the home buying process, they can add up quickly. And if you haven’t budgeted for these expenses, you can experience major sticker shock when your mortgage lender sends you a Loan Estimate that breaks down the expected closing costs in detail.
Tip: Typically, these costs are 3-5% of your home loan. So, if your home costs $100,000, you can expect to pay around $4,000 in closing costs.
What I Would Do Differently
If I choose to buy a different home in the future, I will shop around for different home lenders and title insurance. By weighing my options instead of going with the first lender I found, I could’ve saved myself hundreds of dollars.
Negotiate With The Seller On Just About Everything
When you’re in the process of buying a home, you can negotiate more than just the price. While you’re putting together your offer, you can ask the seller for nearly anything–and you should. These requests can include making repairs, paying the premium on a home warranty, covering closing costs, leaving their sparkly new appliances behind, or even flexibility with your closing date. Negotiating aspects beyond the price can help to save you time, money, or both in the long run.
What I Would Do Differently
I’ll be the first to admit that I’m a terrible negotiator. After viewing my home, I put in an offer for the sellers’ exact asking price, with only the request to keep the appliances. If I could redo this interaction, I would request a home warranty and for the seller to cover part of my closing costs. If they were to only accept one of those two requests, I would push for the home warranty. This can help save you from hefty expenses should one of your major appliances or systems need repairs.
Scope Out The House At All Times Of The Day (And Week)
Going to view your potential home a few times with your real estate agent isn’t enough. To get a better picture of the house and your future neighborhood, you should also scope out the property during various parts of the day. If you initially view the home on a sunny spring day, go again on a rainy day to see if it looks just as cozy in gloomy weather. You should also view your potential home on the weekends and at night. This can help you determine the neighborhood’s atmosphere and see if it will fit in with your lifestyle.
You can also test your daily routes to work, your children’s school, or your favorite restaurants. If the routes are complicated or constantly plagued with bumper-to-bumper traffic, then the location may not be a fit for your needs.
What I Would Do Differently
I love my neighbors, but if I could go back, I would drive around the neighborhood on a Saturday night to get a feel for the energy. Many of my neighbors have large family gatherings, which can easily get noisy. If I would have known this prior to my purchase, I would’ve chosen a house in a different part of the neighborhood.
Don’t Drain Your Savings
As you're shopping around for your home, it’s crucial to know your budget and stick to it. Life happens and your home will eventually need some type of repairs. When these events happen, you don’t want to be left scrambling to cover the costs because you drained your savings on the initial purchase of the home.
Tip: Keep at least 90 days-worth of your expenses in your savings. This way, when life throws you curveballs, you’ll have a financial cushion.
What I Would Do Differently
After purchasing my home, I learned just how important it was to have a high-yield savings account. If I could start over, I would’ve opened one sooner to help my money grow quicker and to keep my stress levels low when I had my first plumbing problem.
Know Where Your Finances Stand
When you’re working to get approved for a home loan, lenders do an extensive evaluation of your finances, including reviewing your income, how much of your income is going towards debts, and a thorough credit assessment. Before you begin house hunting, know where your finances stand so that you’re not in for any surprises. Check your credit report, pay down debts, and make sure that you don’t have anything in collections. It can be absolutely heartbreaking to fall in love with a house only to get turned down because you forgot to pay off a credit card two years ago.
What I Would Do Differently
While I was shopping for a home, I didn’t review my credit. So, it came as quite a shock to me when I was reminded of a small debt I had in collections from my days in college. Fortunately, this didn’t hinder my approval, but if I could go back, I’d keep better track of these debts to not risk my chances.
Consider Maintenance And Upkeep
When you shop for a home, consider every aspect. What size yard does it have? Are there dangerous trees or shrubs that could cause damage to your home? How many square feet is the home and can you keep it clean? The last thing you’ll want is to come home from work to an overwhelming yard or messy living room.
What I Would Do Differently
When I first viewed my home, I fell in love with all of the shade trees that I had in my backyard. However, after a chat with my neighbor, I learned that my beloved shade trees were wreaking havoc on his home’s foundation—leading to an expensive removal. If I could do this over again, I would have included the removal of the tree in my offer for the original homeowner.
Be Weary Of Flipped Houses
While DIY projects can allow you to gain new skills and save on costs, it comes with a price. Many homes on the market are old houses that have been quickly renovated by regular people, then sold to make a profit. These homes may look beautiful, but many “flippers” often cut corners, or don’t have the expertise required to successfully renovate. If you select a flipped home, be sure to get thorough inspections done before signing the final line on closing day.
What I Would Do Differently
I’d highly recommend verifying the contractor the seller used to help with renovations. This can help you confirm that your potential home is up to code, so you won’t be left with the financial burden of redoing all of their handiwork.
