5 Things Nobody Talks About When Buying Your First House
Going through the home buying process as a first-timer can be scary. There are loan requirements, title insurance, escrow, appraisals, and a million other terms you’ve probably never heard before if you’re not already in the real estate space. With a quick Google search, most homebuyers can learn that they’ll need a loan, an agent, and to find a house they like. But there are still so many unanswered questions - What happens if something in my house breaks? What does this interest rate thing mean? Should I wait to buy? Here are a few answers to questions no one really talks about to help soothe some of that home buying anxiety:
Interest Rates Are Not Forever
I love the phrase “Marry the house, date the interest rate.” Interest rates are constantly changing and can fluctuate depending on the Federal Reserve, economic conditions, inflation, your credit, and a number of other factors. Even if the interest rate you lock into when you first close on your home isn’t ideal, it can be changed down the road. You can refinance your mortgage during a time when your financial/credit situation is in a better place or interest rates take a dip to lock in at a more ideal rate.
The Best Time To Buy Is When You Can
If you’re in a position where it makes financial sense to purchase a home, I do not recommend waiting. Real estate is a long-term investment, and, the more time you wait to buy, the more equity you’re missing out on. The folks who’ve done well in real estate bought when they could and held the property long-term.
Timing The Market Almost Never Works
Piggybacking off of the last point, waiting to buy in the name of “timing the market” almost never works out. Time in the market will always beat timing the market. Are there better times to buy than others? Sure. But, typically, we don’t know what those times were until they’ve already passed. Timing the market puts buyers in a state of “analysis paralysis” where they’re constantly waiting for something “better.” Better usually never comes or is never good enough, and the buyer will miss out on weeks, months, and even years of equity gains that could have been helping them build their wealth.
Prepare For Things In Your Home To Break
It’s inevitable. At some point in your homeownership journey, something in your house will break or stop working. It’s important to have some money set aside for repairs, teach yourself some basic skills to keep up with home maintenance (like changing your furnace filter or tightening cabinets), and invest in a home warranty that will cover the vast majority of the costs associated with repairing or replacing major systems in your home. I purchase a 1-year home warranty for all my buyers to help them avoid those potential repair costs as they settle into their new home.
You Don’t Need To Find Your Forever Home On The First Try
Your first home is rarely going to be your dream home, and that’s okay. Instead of focusing on finding something you want to live in forever, find something you could live in for the next 3-5 years. At that point, you can either take your equity and purchase something nicer or turn that property into an investment property and start building your real estate portfolio.
Have more questions about the home buying process? Let’s chat! You can book a complimentary consultation with me below.
