Buying a house is a big step in your life and finances. To make sure that you are happy with your home and prepared for all the challenges you will face as a homeowner, here are the most important things to know before buying your first house.
Know That You Can Afford It
Before you buy, make sure that you can afford to own a house. Remember that there are a lot of upfront costs when you buy a house, including moving expenses, the down payment, closing costs, realtor fees, and more.
Then you need to think about ongoing fees, such as the mortgage, insurance, property taxes, and any repairs.
Know Your Credit Score
Assuming you aren’t buying the home outright, you will also need to know your credit score. Generally, you will want a credit score of at least 700 if you are planning on buying a house. This will get you the best interest rates. If it is a bit lower, you can work to improve it. Otherwise, you may have to look a little harder for a loan and end up with higher interest rates.
Know How Long You Will Likely Stay
Most experts agree that when buying a house, you should aim to stay for at least five years. Less than this and you likely won’t recoup any of the costs from buying and selling. You also will not have had a chance to build much equity, as your mortgage payments will have mostly gone to interest.
Know Not to Feel Too Pressured
From the sellers to your real estate agent, you are likely to feel pressure during the house search. They will play on your fear of missing out to get you to put in an offer or gloss over details. Know that you don’t have to feel pressured. There are other houses on the market. That being said, accept that sometimes you may need to act fast if you really want a particular house.
