Purchasing your first home is a milestone that comes with excitement, nervousness, and a steep learning curve. Sara Bettale, a seasoned real estate agent based in Houston, shares her expertise on navigating the home-buying process. Here are the top 10 tips for first-time home buyers gleaned from her latest YouTube video.
Embrace the Charm of Older Homes
While newer amenities are attractive, Sara stresses not to overlook the sturdy charm of older homes, “Grandma’s house”, for instance. They are often well-constructed and may offer financial advantages like more equity to play with at closing, which can result in better deals for the buyer.
Consider Generational Living
Combining households across generations might seem unconventional in America, but it’s a smart financial move many other cultures embrace. By pooling resources, families can afford larger, nicer homes. This might mean purchasing a property with extra rooms or a mother-in-law suite, allowing for shared expenses but also maintaining personal space.
Avoid Being House Poor
To prevent housing expenses from overwhelming your budget, Sarah advises that your home cost should be between 25 to 35% of your take-home pay. Looking at net rather than gross income will provide a realistic understanding of what you can truly afford.
Budget for the Unexpected
Even if you’ve calculated your mortgage payments within the recommended limits, you should always leave wiggle room. Property taxes and homeowner’s insurance rates are subject to change, so budgeting for potential increases will protect you from future financial strain.
Mortgage Rates Can Change
Remember that mortgage rates aren’t locked in until you’re under contract. Have a discussion with your lender about the costs associated with locking in a rate or having the flexibility to benefit from a possible rate decrease after your offer has been accepted.
Quote Your Home Insurance Early
Don’t wait until the last minute to get a home insurance quote. Start early so you have a clear idea of the costs, especially in areas prone to natural events like the Gulf Coast, where rates can be more volatile.
Understand Real Estate Commission
Real estate commissions can vary, and typically, the seller covers this cost. However, changes in law or contract specifics could affect this, so make sure you understand who is responsible for the agent’s commission.
Know Your Neighborhood
Spend some time in the neighborhood at different times and days to get a sense of the community. Try out local businesses, visit parks, and observe school release hours to feel confident it’s a neighborhood that matches your lifestyle and values.
Visit the Home Multiple Times
Throughout the purchasing process, ensure you view the home several times—at least before making an offer, after any repairs, and for a final walkthrough.
Find a Good Realtor
A competent, good-natured realtor will guide you through the ups and downs of the home-buying process. If you’re not feeling confident with your current realtor, don’t hesitate to seek out one that matches your communication style and needs.
In closing, Sara Bettale’s advice comes fueled by expertise and a desire to make the home-buying experience as smooth as possible. By following these tips, first-time home buyers can step onto the property ladder with a little more confidence and knowledge. Remember to subscribe to Sara’s channel for more real estate insights and tips.
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