{"id":96181,"date":"2019-08-02T10:25:38","date_gmt":"2019-08-02T14:25:38","guid":{"rendered":"https:\/\/www.bhgre.com\/bhgrelife\/?p=96181"},"modified":"2019-08-02T10:25:39","modified_gmt":"2019-08-02T14:25:39","slug":"first-time-home-buyer","status":"publish","type":"post","link":"https:\/\/www.bhgre.com\/bhgrelife\/first-time-home-buyer\/","title":{"rendered":"First Time Home Buyer? Ten Facts Nobody Tells You"},"content":{"rendered":"\n

Buying your first home can feel like both the best of times and the worst of times. Here are 10 facts nobody tells you when you\u2019re buying your first home.<\/p>\n\n\n\n

1. Something will go wrong<\/strong><\/h3>\n\n\n\n

No move is ever perfect. Something will get broken or there will be something you\u2019ve forgotten to bring or do. With any luck, the setback will be minor, and you can chalk it up to the old adage, \u201cthings happen.\u201d<\/p>\n\n\n\n

2. Some of your conditions might not be met<\/strong><\/h3>\n\n\n\n

One of the\nleast enforceable clauses in offers to purchase is one for cleaning requests.\nYou can stipulate that carpets, refrigerators and ovens be cleaned. However, if\nthey haven\u2019t been, there is often very little that you can do about it. <\/p>\n\n\n\n

If a major\nrepair hasn\u2019t been completed as promised, one of two things will happen: you\neither won\u2019t take possession of the property on the day you planned or your\nfunds will have to be placed in escrow pending resolution of the issue.<\/p>\n\n\n\n

3. If you don\u2019t have the closing fees, you don\u2019t get your new home<\/strong><\/h3>\n\n\n\n

Legal fees\nare due on closing, and your funds won\u2019t be released to the seller unless your\nlawyer is paid. Closing costs usually range from two to five percent of the\npurchase price, but be sure to verify this information before arriving on\nclosing day. This money is in addition to your down payment<\/a>.<\/p>\n\n\n\n

4. Good schools increase a home\u2019s value<\/strong><\/h3>\n\n\n\n

You\u2019ll pay\nmore for a house in a good school district. Of course, the good news is you\u2019ll\nget more for it when you decide to sell. If the home you\u2019re planning to buy is\nyour \u201cforever\u201d home and you don\u2019t have, or plan to have children, this may not\nmatter. Still, it\u2019s something to think about.<\/p>\n\n\n\n

5. Your neighborhood may be about to change drastically<\/strong><\/h3>\n\n\n\n

The\nmunicipality may be planning a park, a school, or a playground for your area.\nDepending on your lifestyle, that can mean profound changes in a short period\nof time. Check with local administration and the area\u2019s local representative.\nThe first can tell you what the plan is. The latter will have a far better\ngrasp of whether outlined timelines are accurate or not. You can base your\ndecision on the information they provide.<\/p>\n\n\n\n

6. You need to read all the documents yourself<\/strong><\/h3>\n\n\n\n

It\u2019s tempting\nwhen you\u2019re paying a lawyer to review HOA or condo documents to simply delegate\nthis task. However, a close reading of the minutes of meetings will teach you a\nlot about your neighbors-to-be and help you avoid nasty surprises, like planned\nincreases in fees or devolving renovations that used to be the condo board, or\nHOA\u2019s responsibility to individual owners.<\/p>\n\n\n\n

7. Don\u2019t apply for other credit while mortgage shopping<\/strong><\/h3>\n\n\n\n

Applying for\na loan or another credit card may seem like a good idea when you\u2019re about to\ntake the home ownership plunge and know you\u2019re going to need to buy things like\ngarden tools, a gazebo, and a grill. Don\u2019t do it unless absolutely necessary.\nIt can negatively affect not only the amount of your pre-approved mortgage, but\nit can also mean you don\u2019t get pre-approval. Wait until after you\u2019ve bought\nyour home to apply for more credit<\/a>.<\/p>\n\n\n\n

8. You\u2019re going to need \u201cearnest\u201d money<\/strong><\/h3>\n\n\n\n

Also known as\na deposit, you\u2019ll likely need about $1000 per $100,000 worth of house available\nwhen you make an offer. This money is required as a show of good faith and will\nbe held in escrow. You\u2019ll get it back if your offer isn\u2019t accepted, or it may\nbe applied to your down payment. You may forfeit this money, though, if you\u2019re\nthe one who withdraws from the deal.<\/p>\n\n\n\n

9. Your neighbors-to-be may be your best source of information<\/strong><\/h3>\n\n\n\n

Walk around\nthe area you where you want to live. If you see people out gardening or mowing\ntheir lawns, talk to them. Strike up a conversation and explain that you\u2019re\nthinking of buying. Ask receptive individuals what the neighborhood is like,\nhow long they\u2019ve lived there, and how long they\u2019re planning to stay. If you\nlearn that your new home is located next door to some party animals who blast\nmusic every single summer evening, you may not enjoy your own backyard, so you\nmay want to reconsider.<\/p>\n\n\n\n

10. Check for rebates you may be entitled to<\/strong><\/h3>\n\n\n\n

You may\nqualify for first-time homeowner rebates. There may be other municipal, state,\nor utility-provider rebates available, too. Start investigating early. It may\nmake more sense to invest in attic insulation than an air conditioner if you\u2019re\ngoing to get a rebate that covers some or all the cost of the insulation. Some\nareas offer rebates on newer, more energy-efficient appliances. You won\u2019t know\nthat unless you do your homework.<\/p>\n\n\n\n

A good real estate agent can\ntalk you through the buying process. Now you\u2019re already ahead of the game with\nthese ten facts nobody tells you, and you\u2019ll be able to focus on offer strategy\nrather than the fundamentals.<\/p>\n","protected":false},"excerpt":{"rendered":"