Hard-earned wisdom from purchasing two homes
There’s always another home.
Don’t get emotionally attached, especially early in your search. There’s always another house around the corner. When you get too invested emotionally, you might compromise on important details that matter in the long run.
Focus on monthly expenses, not just the list price.
Unless you’re paying cash, don’t fixate on the list price. Instead, evaluate your budget based on monthly expenses, factoring in things like property taxes (which typically increase), mortgage rates, mortgage insurance, and down payments.
Get pre-approved for a mortgage.
Understanding what you can truly afford starts with getting pre-approved. This involves considering your home address, income, assets, loan amount, estimated property value, credit score, and more. Pre-approval provides a realistic sense of your budget.
Be kind to real estate agents.
Real estate agents are crucial allies. They help you negotiate, and they may even have access to pocket listings. Showing empathy, respect, and kindness to both your agent and others can make a big difference in your home-buying experience.
Shop around for mortgage rates.
Don’t settle for the first mortgage rate you receive. Banks compete for your business, so it’s worth comparing rates. This small step can save you thousands of dollars over the life of your loan.
Don’t leave free money on the table.
There are over 2,000 down payment assistance programs available to eligible home buyers. These grants can significantly help with your down payment and closing costs, so be sure to explore your options.
Lawyers are the quarterback.
Once you sign a contract, your lawyer takes charge of the entire closing process. Not only do they review and negotiate the contract, but they also coordinate with all parties to set and finalize the closing date. They handle everything from down payment funds to scheduling the closing with all parties, ensuring that all the pieces come together smoothly.
Take your time during the walkthrough.
The final walkthrough is your chance to inspect the home thoroughly. Don’t rush it. We learned this lesson the hard way when we didn’t test the dishwasher during our walkthrough—and later found water leaking from it after moving in.
Consider writing a letter to the seller.
In a competitive market, a personal touch can go a long way. We wrote a letter explaining why we loved the home, and it worked. Despite receiving a cash offer from a developer, the seller chose us.
Ask questions, lots of them.
The home-buying process involves many professionals—real estate agents, lawyers, loan officers, and inspectors, among others. Don’t hesitate to ask questions about everything from mortgage products and contingencies to rates and inspections. The more you understand, the less stressful the process will be. This is a major milestone, and the more informed you are, the better decisions you’ll make.
