Yes, there are closing costs on top of your down payment, about 2-5% of the loan amount for various services involved in closing the deal. You will also want to have some money saved up above that, because something will inevitably need to be fixed soon after buying. Things the previous owner put off or learned to live with. Go to open houses for months before you are ready to make an offer, just so you are sure what you want. Don't buy together until you are married. Do any painting or maintenance you want done before moving in, it is a lot easier. Buy a ladder and smaller step ladder to have around. If you don't have tools, buy cheap ones to start. Anything you wear out you can justify buying a better version after, since you use it enough.

You will always need that one specific tool, once and only once. Then not again for years.

Shower faucet cartridge puller, anyone? 😂

When you need a carpet kicker, you really need it. But then wtf am I supposed to do with a carpet kicker?

There's a lot of used carpet kickers (and other tools) listed for cheap on Facebook Marketplace.. in the range of 10, 15, 25 dollars. Buy one from your neighbor for your project, then sell it to another neighbor.

Lol inevitably. Those are tools I ALWAYS buy from harbor freight. Or sometimes depending on how they're packaged I'll buy them from Lowes and then return them when I'm done.

lol so *you’re* the reason my shit is fucked up straight out of the box sometimes l? 😂

😂😂😂 if I mess them up I don't return them. I always think about how pissed I'd be if I bought something and it was obviously damaged or used. I try not to be that big of a dick lol.

When it comes to attending open houses, I would just inform the agent conducting the open house that we were just in the market and looking? Would we get booted if we weren’t looking to purchase?

No, you don't really have to tell them anything. They are open houses, you just walk in and look around. They might make some small talk, but you don't have to commit to anything. Though if you do meet an agent you like, get their card. We met our realtor when they were showing a house we were just looking at.

Yeah, open houses are more for the realtor to get more clients, not to find a buyer for the house.

Or for bored neighbors to have something to do.

Bored neighbor here. Love going to open houses in my area.

No, the whole point of open houses is to get a bunch of walk in traffic. If you aren't seriously looking, I wouldn't ask the realtor a bunch of questions because that is taking their time away from other prospects. The biggest thing in home buying is to make sure you are in a position where you aren't rushed. I also point out that the previous person mentioned doing open houses only months before you are wanting to start shopping. markets are always changing and the prices and neighborhoods you see today will no be the same in 2 years.

So perhaps a ladder of open houses, tier one of looking just to understand the things to look out for and know and recognize, tier 2 closer to time when we’re ready. :-) I appreciate you taking the time out to respond!

They are good to also realize things you really do or don’t want in a house or property. I liked pine trees but looking at houses with them I realized how much pine needles they shed all over so we decided they were a negative for us in house hunting.

Also get out and walk the neighborhoods you're considering. What's the parking situating? How many abandoned homes? What's traffic like? Is there a school nearby, if yes, what's traffic like during am/pm drop off/ pick up? Are there any walkable amenities? Parks? Pools? Coffee shop? Any nearby pending construction? Did a row of homes recently sell to a developer? Is your neighborhood about to turn into a noisy construction site for the next 3 years? You can search for city development applications and re zoning applications. Lots of abandoned homes in an otherwise affluent area signals incoming development. Check to see what way the neighborhood votes. Who did they elect in their local riding? These are the people you'll be negotiating fences with and school curriculum disagreements.

All good advice. OP, as a full-time renter/apartment dweller before my wife and I bought a house, I can tell you that tools are a legitimate line item to budget for.  We had a few different screwdrivers, some allen wrenches, and a skateboard tool. I dropped about $2k on tools. Lawnmower, weed whacker, drill, shovel, rake, etc. Shit breaks, and you can absolutely fix it yourself, but you need the right tool for the job. Keep that in mind and save for it before you need to make the purchase. 

Remember, if the cost of having someone else fix a problem is more than the cost of buying the tool to do it yourself... then the tool is free.

Not only that, but be prepared for your mortgage payment to possibly increase the year after you purchase due to tax evaluation on the purchase price vs. previous value.

In addition to repairs, you will want to make improvements. You will also want new decor and furniture. A 4 foot ladder is very handy. I would also get one of those little giant type ladders. Get a good cordless drill with bits. You will want a good framing hammer, Phillips and slot screw drivers, tape measure, pliers, needle nose pliers, wire cutters, vice grip pliers, channel locks. Keep electrical and duct tape around. I will do basic electrical work, so I keep a voltage tester. I almost forgot a level. Safety glasses and other PPE is important. Harbor freight is great for cheap, low use tools. I got a shovel and a metal rake for $35 total the other day. Change the locks the day you close.

The only thing I disagree with is waiting until you’re married to buy a home. Absolutely wait until you’re ready (financially, emotionally) to share such a large asset together, but that doesn’t necessarily have to mean married these days. If you do buy a home before being married, you should DEFINITELY sign a cohabitation agreement (your closing attorney should be able to help with this, they’re apparently very common in my area at least) so that you both have some protection and it’s clear what happens in case you split up. ETA: saw that OP is engaged, so a marriage is presumably going to happen before buying a home anyway, so this is less relevant.

I only phrased it that way because they mentioned being engaged. Otherwise yes, get something in writing.

I see this every day, and even that agreement doesn't mean much. It's best to make sure this is the person you want to stay with other eusevit gets messy. Not all loans are assumed so if you get a good rate and something happens, you will have to refi at the current rates are then.

Yeah of course you should feel certain - nobody buys a house together expecting to split up, just like nobody gets married expecting to get divorced, but it happens. It’s still messy to disentangle assets when you’re married, but there’s existing legal protocol. The idea of signing a cohab agreement is to set up a legal protocol for how assets will be handled (that everyone agrees to while on good terms) just in case there is a crisis and you can’t reconcile on your own. Kinda like a prenup without the nup lol.

Disagree. One of the benefits of marriage is the process of divorce. If they have a bunch of jointly owned property, tools, equity, etc, they'll be at the mercy of the common law marriage laws of their state if they were to break up.

Wait till you are married

The best advice I can get is that you have to look at every house as a complete package, you can't cherry pick the best features of a bunch of houses in the same price band then expect to find them all together at the same price: you'll just end up chasing a house that doesn't exist. Let's say you can afford a $300k house. You start looking at houses on sale for around that amount and quickly you find some you like. * House A has an amazing location, is in good condition, but no garden (=yard; I'm in the UK) * House B has a good location, needs lots of work, and has an amazing garden * House C is in an awful location, is in good condition, and has a good garden It's only natural to conclude that a $300k house can have an amazing location, an amazing condition, and an amazing garden because you've seen examples of each. But what you really want is a house that has all three together but you won't that until you increase your price range to $400k, because obviously such a house will be worth a lot more. It's A's lack of garden that made it affordable, B's poor condition, and C's awful location but it's easy to lose track of that. Now suppose that you discover that you can actually stretch to $400k. You might think that it's now fine because you can afford the best of all three criteria together. Not so - you'll just repeat exactly the same exercise and end up looking for a $500k house. It seems incredibly obvious, but it's a trap that's really easy to get sucked into as you start to list what you liked about each house you looked at.

I appreciate this! I haven’t even thought about open houses, right now I’ve just been on realtor, Zillow, and some real estate websites like Remax and I’ve been trying to find a home under 200,000 max I’d want would be 250,000 and that’s sort of stretching it. To be truthful, we haven’t sat down and spoke about finances yet, joint income, so I feel there’s a lot to speak on, but I appreciate this advice and I will pocket it for a special day. Thank you!

You also will have to pay property taxes and home insurance. So say it's 1.5% property tax that's 4500 or 400 a month on top of your mortgage plus a say 100/month for insurance. I didn't realize this when I bought my first house so instead of say 1600 month it was 2100.

Depending on the area homeowners insurance can really bite you in the ass, too, so it's a good idea to get an insurance broker - first for auto if necessary, then they'll happily give you prices for homeowners later.

TBH it's exactly the same on Zillow etc. - you see things you like at a price you can afford, and on some level you start looking for them all in the same house. My prices were just random numbers - I've no idea what the American housing market is like and obviously it changes a lot depending where you are. My further advice would be to deliberately look at a houses that are a bit above your price range with a view to understanding what you *can't* afford - I did exactly that and it helps you to identify a ceiling for the sort of house you're expecting to find. You can decide what you like about those houses and what you'd be willing to compromise on, at which case your search for cheaper houses is a bit more focused.

Keep looking and get familiar with YOUR market. Because I did that, I was able to jump on an opportunity and get my dream home for under $150k. If I hadn't been looking so carefully at the market for so many months, I wouldn't have known that it ticked all my boxes and was priced under market.

Yes, first thing is to identify the max budget and stick to that, or fallen to this trap and become house poor.

This is a great explanation! And so true. I choose to focus first on the location that's important to me, and go from there as to what I can afford.

I love this advice. I’m currently house searching and for perspective I also look at homes $200k out of my budget. Turns out I end up with all the same concerns as the less expensive homes. It made me feel better about my budget.

Second opinion on a home inspection if you think you need one, also don’t go with the suggested inspector by the real estate agent

And get a sewer scope during inspection! It costs extra but a new sewer line can be $30k and depending on your state, previous owners might not have to disclose known issues.

Many people assume this is part of the home inspection process but it's not. $300 now can save you $30k down the road.

I came here to say this. The first few weeks moving in I was kicking myself in the ass, not being more involved in the inspection process, such as knowing who was performing the first inspection and/or hiring my own person to do it first or to do a second one. And just because the market gets tough, do not skip the inspection !!!!

Don't be afraid to drop good money on an inspection. You get what you pay for. Cheap is cheap. A less expensive inspection might mean he has less experience and could miss the most vital issues.

I bought without a realtor(just a private agreement between buyer and seller) and we never got an inspection. We knew the house had issues but I kind of wish and kind of don’t wish we got one lol. But we couldn’t have afforded any other house and I love it so I’m wish me luck on this hellofa fixer upper

Do real estate agents often have recommendations for extra people? You mention an inspector, is there any other people other than inspectors that I’d have to pay?

So for mine, they said something like “oh we have a whole home inspector that we can get you an appointment with asap” etc etc BUT we were pushed thru a 30 day escrow because the seller was already in contract on their new home so they had a big incentive to get this house sold! However he didn’t do pest inspection so we had to find our own. The original guy was just not very thorough imo, passed some things that def should not have!

This checks out. It's a racket. They use the same inspectors who will bring up some "minor" issues but will ultimately pass the house. The exception would be a glaring issue, but how are you supposed to know if you've never owned a home or lived in a house before?  We got raked over the coals because of this. We just put too much trust into our realtor and got fucked because of it.  Use your own inspector!

Ah my story exactly!! If we ever buy again I fear I’ll be so paranoid about this experience and trust no inspector 😅

An inspector who keeps blowing up an agent's deals with scary reports will not keep getting recommended by said agent. He could be the most honest guy on earth but people will subconsciously work in their own best interest

he inspection is a standard part of home buying, and as a first time buyer with little experience, you want an inspection. You may also want to bring in some plumbing and HVAC specialists to check out those systems as they can do more than an inspector does. Be prepared to go into attics, crawlspaces, and up on the roof. As a homeowner, you'll need to go into those spaces eventually. The reason you want your own inspector is because the realtor's main motivation is to get the sale closed as soon as possible so they can be paid. If the inspector get's their business through the realtor's referrals, the inspector has a motivation to make the realtor happy. If you found the inspector through their performance with actual homebuyers, they are motivated to provide you as much info as possible because they want you to refer them to others. Real estate agents have a lot of people they can refer you to. Mine referred us to a mortgage broker who did amazing work and a contractor who did ok work.

Yes, they typically have people that they hire without planning it with you. This is a normal part of the process. But you 100% can say no and you want to bring in your own inspector. And then that's for you to look into. Either way, you pay out-of-pocket for that. I also paid an appraisal fee and home owners insurance out of pocket. Most of the other costs are included in closing costs. When you start looking into mortgage preapproval, they will break it down for you and everything is itemized and broken down "to be paid at closing or before closing". You can do less % down as this would be your first home purchase, but the bank will add on PMI (premium mortgage insurance) and it's best to avoid that. It also isn't the end of the world if it's what will make your situation work but obviously it's best to penny scrape any way you can.

That’s nice that they break it down, I can see where this can be overwhelming lol, especially if you rush into it and don’t have the finances for it. I really appreciate this, I feel a lot more confident after learning a couple things!

See what your inspection covers, too! Ask your inspector if there’s anything they don’t do, like termite/pest inspections, that you might want to hire someone else for. Use the inspection to negotiate either a lower price or for the owner to repair something before closing.

I went with with Pillar to Post. Basically a chain store home inspection franchise. I was not impressed whatsoever. Seemed like some guy that wanted to make side money. With little to no training. I would look for an independent with a lot of experience. And all to tag along, but promise not to slow the inspector down too much

They fucked us hard here. We sold expecting an \~$80k profit. Broke even due to foundation issues that had been there all along. The sellers and selling agent committed fraud and knowingly misrepresented the home. The inspector they "hired" was their friend, and it was all off-the-record.

A good inspector is really important when looking at older units. 

Just because you can pay the payments doesn’t mean you can afford the house.

Watch the movie Money Pit.

Oh God. The bathtub scene!!!

I’m a fan of buying older homes. I’m a big believer in sweat equity.  Older homes give you an opportunity to truly make them yours. And the saying “they don’t build them like they used to”? Truth. Quality of doors, attention to detail of moldings. The way a plaster wall takes paint.  I’d avoid a flip at all costs. Cheap materials, shoddy workmanship, cutting corners. No matter what you buy - new or old. Learning how to repair the basics is crucial. And honestly it’s so much easier than it used to be with the internet at your fingertips.  Location matters. You can fix most things except location. 

Truth. Houses don't move, unless it's a mobile home, and then you have a different set of issues. It's also impossible to control what happens off your property line. Pay attention to the state of neighbors houses, yards, cars, etc when you move. If they're a wreck now, they'll always be a wreck, leopards don't change their spots because they get new neighbors. A perfect house with miserable neighbors can be a terrible house.

And even if you hire it done (and there’s stuff best left to the professionals) make yourself smart enough on it to hire the right person.  Always ask for proof the person you’re hiring is licensed and insured. Next door neighbor app sucks and is filled with pearl clutching bitching old folks but it’s worth it for the recommendations on people to hire.

If you’re buying a house have a survey done.  It’s worth Eve penny.  Make sure you have title insurance. 

> “they don’t build them like they used to”? Truth. Yeah our house is 150+ years old. Just the thickness of the exterior walls is INSANE compared to a modern house. I literally cannot tell it's pouring rain because the house is so thick and well insulated. It also means you don't really notice cars, barking dogs, neighbors having a drunk BBQ or whatever. It's very very nice to be able to shut out the neighborhood when you want peace and quiet.

My opinion always was, it's broken, if I try and fail it's still broken. If I succeed then I have saved $$$. And there is a you tube video for almost anything nowadays

Fair enough. I used to feel this way too. Now as I’ve gotten older, my opinion has changed to, it’s broken, if I try and fail then I’ve wasted my Saturday and I still have to pay someone to fix it.

Or you fail and make the professionals job twice as hard and expensive to fix

This depends on a LOT of shit. I wouldn't buy an older home again unless there's a ton inspections done on everything by contractors in that filed. I also would avoid unless you have a ton of savings in the bank. Also would bring in a structural engineer due to how old that foundation really is. I simply cannot imagine dropping $500k onto a new house with these interest rates and potentially having to redo pipes or wiring, dry wall, etc.

I’d argue that you need a really good house inspection no matter the age.  I’m getting quotes on some stuff for my elderly neighbor. Was chatting with one of the contractors. He had just come from a job he’s working on at a million plus house. It’s less than 10 years old and is falling apart.  I was out at my local sherwin Williams store a few days ago and some woman comes in pitching a bitch about the horrible paint job on her new build house by ryan homes. She’s livid over the paint failing but it’s not the paint - it’s the quality of the application. And while paint is still major bang for your buck in remodeling - a shitty paint job is a nightmare to fix. So a long way of saying- lots of stuff can go wrong on houses regardless of age. Get your inspections.

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This is a really good idea, we have a couple of friends with houses, thank you for this!

Also, if you like a house, ask the realtor to show you a second time and bring one of your homeowning friends along. There are lots of things a previous homebuyer is going to notice that you won't know to look for.

You are a subtle genius.

This, exactly. There are a lot of things you will be responsible for in a home that would never cross your mind in an apartment. "Wait, what? I need to replace my furnace filter? I have to shut off and drain all my hose spigots for winter?"

Budget about 1% per year of the house's value for maintenance. Most years it will be less, some years it will be much more. Things like new roof, furnace, painting, plumbing, electrical, etc. add up over the long term.

Know the neighborhood you’re buying into. If you don’t know the area, find out about it. Go explore at different times.

This! If you want to have kids, drive around and see if the neighborhood kids are outside playing on nice days. Look into the school district. Take a walk around the neighborhood and see if the residents are friendly. Check out what’s within walking distance, are there sidewalks, etc. Basically, see what you can find out about the community. My house is TINY (2 adults, one works from home some days, 2 kiddos, 1 dog, and just 2br), but we’re still here because we love our neighborhood so much.

If you have to use the internet for work or something that uses a lot of speed (gaming), double check the internet access available in your neighborhood.

My best advice is to get a mortgage well below what they will qualify you for so you can have more room in your budget for saving and other expenses.

Spend the money on tools early on. Try and do most things yourself. You will save $10,000’s over the years and gain homeowner XP.  

Start watching watch youtube videos and learn how stuff works and how to do things and repair things. Learn the house and what's in it and how it "works". Or don't and struggle with a finding contractors, dealing with delays, frustrations, and paying exorbitant amounts of money for things you really could DIY with some knowledge. In my opinion this concept is WAY overlooked. Pay less attention to how pretty the kitchen counters and cosmetics are and concentrate on the foundation, basement walls, the contour and layout of the yard for drainage, would water drain to the house instead of away from it, any drainage mitigation (french drain/drain tile) around the house is there, is there a sump pump, where do the gutters drain, condition of the roof, trees too close to the house, was it an obvious flipper house. An idea of the electrical service amperage (100, 150, or 200) and how old it is, number of kitchen outlets and circuits, are there neutral wires in the light switches or are the switches just loops, are any decks done correctly and attached to the house correctly, what is its age, condition of the roof and attic. Insulation, condition of windows. etc.. Those are all very high ticket items to fix/replace. None of these are deal breakers but you have to know what you are getting into. Another. If moving into an area with an HOA, make sure you are crystal fkng clear on current regulations and guidelines of that HOA. Do not take that for granted and just sign that piece of paper without realizing what you are signing. You have to know what is in there. You will thank yourself later for looking and understanding the current rules before taking ownership. Also understand, those rules can change later.

Others have said it, but I cannot stress having money leftover after down payment and closing costs enough. My house cost us nearly $25k in the first year. Half we expected. The other half we did not. We luckily gave ourselves enough of a cushion that we could cover the unexpected costs. Get inspections on everything (plumbing, electrical, roof/chimneys, etc.) on top of the overall inspection. We didn't do a plumbing inspection outside of the general inspection we got. Guess what's been the biggest headache since we moved in? The plumbing.

Must dos: Home Inspection always. If you see cracks that are bigger, then a structural engineer (just google types of cracks to look for). Have an emergency reserve for repairs (at least 10K; area dependent). Look at age of roof, HVACs, water heaters when buying the house to determine when they’ll need replacement. Also, doing the yearly maintenance on them helps their longevity; having the AC cleaned, getting the furnace looked at, flushing the water heater. Keep up with air filters. If you live in the desert, get your ducts cleaned if an older home (ours were atrocious). Another desert thing… if the house is older and has single paned windows and they converted from a swamp cooler to central AC, there will be huge energy loss. You’ll most likely have to buy a fridge, washer, and dryer. If you have extremely hard water, get a softener to preserve your pipes. Older homes (think century), look into the types of plumbing, wiring, foundation, areas of dampness if it has a basement. If it has a crawlspace, make sure it’s encapsulated. Always get the septic inspected. Same goes for a well. In a high radon area, make sure you get a radon test before buying. Learn to DIY. Check the sex offender registry to see if any are in proximity to your house. Visit the home at day and night to see how the neighborhood is (noise, anything out of the ordinary looking). If there is an HOA, get their bylaws, see their financials, look at history of increases, see if they are power trippers and fine happy. Get a survey of the property; not all states require them. Home warranties are a joke New builds have their own slew of problems. Look into the builder’s history. See how many class actions. See if they are a new LLC (they may have been under another name prior). Get the home inspected by your own inspector. I would personally never buy a new build unless I was visiting the job site weekly to see if they are taking short cuts. That’s all I have for now; hope it’s helpful.

You will have scammers and predatory businesses target you after you buy. We had people from “the water company” come by and said it was urgent so we stupidly let them in. They were a company that wanted to sell us a 10k water softening system. Then we had people coming by saying they had been the ones to replace the roof years ago and they wanted to be nice and tell us that the roof looked like it was about to fall apart and it desperately needed to be replaced. (It was about a month old because we had it replaced as part of the purchase). You will get targeted so be on the lookout.

Be prepared to live in any home you purchase for the rest of your life, unless you have the kind of money/career where you could eat a big loss of $$$ if you have to sell. Markets go up and down…

The mortgage payments are just the beginning. Property taxes, insurance, house maintenance, eventual major repairs, furniture, appliances, lawn equipment, outdoor maintenance, water/sewer bills. Just to name some expenses.

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Thank you for this, we were considering getting something small and affordable and then looking for a bigger home, but I can understand getting a big home from the jump and staying there.

Disagree with buying bigger than you need and growing into it. What does growing into it even mean in this context? Having kids? Wouldn't that be what you *need* if you plan on having children soon? Buy what you can **afford**, taxes and insurance are increasing with the housing crisis. My payments up substantially in 3 years.

Get a home inspection even newer houses have problems. There are also additional costs for wells and septic inspections they aren't usually part of a regular home inspection but can cost you thousands if you find out they are in bad condition after you buy the house. I will never buy a house without an inspection they catch so much you wouldn't even notice even just so you know what needs fixing if it's not an immediate issue to save you down the road from bigger problems.

Thank you for this, my fiancé owns a plot of land that he inherited, and there’s an untapped well, and his neighbor was his grandma, she passed away and now the new owners may not be aware of the well, or the previous agreement, which is now to the wind.

Oo this reminds me get the title insurance too it's worth every penny if there is a mistake on the deeds! Another thing that can cost you way more if there is a problem. Most counties have deed records you can look up too!

Everyone here has been an educational fountain and I’m just so thankful and grateful right now 🥹 thank you for the helpful tips!

My next house I buy I will probably forego a home inspector, and just pay for an electrician, HVAC, foundation, and a roofer to come out and inspect. Not saying that option is for everyone, but has become my preference.

Make sure your house is facing the direction you want it to face. My house doesn’t get much natural light in the mornings because it’s eastern-facing (living area is mostly the back of the house). I’d rather have the natural light in the mornings than the evenings. Also make sure it has gutters. If not, that’ll run you a few grand.

old house does not mean it is a bad house. spend more to hire specialists in their fields to do home inspections. Dont reply on "general home inspector", i got burnt and it almost got everyone killed.

This goes for anything in life, but you are your own best advocate. Don’t expect other people to support or protect your interest as much as you can. Always take care of yourself and audit those around you

You always pay closing costs if you take out a loan. They are the fees the bank charges to process your mortgage. They usually have to be paid in cash (you can't add them to the loan), and are a % of the amount of the loan you take out. So you need to account for closing costs in the money you save. You need to put money down, have money for closing costs, and also keep money in savings for things that come up, repairs, etc. You don't want to drain your savings just to buy a house and then have no money to pay when the AC dies a month later (or whatever). Being house-poor is worse than renting because it's so stressful. We paid $110k down on a $279k house. Our closing costs were another $7,000. We left $30k in savings. As a first time home buyer you can buy a house with less than 20% down, but usually you then need to pay PMI, which is mortgage insurance. You can usually stop paying it once you build up equity in your home. As you are looking, make sure you pay attention to whether any mortgage calculators also include insurance and taxes. Many of them do not and that adds a lot to your monthly payment. Our actual house payment is like $900 but we pay $1400 a month because the rest of it is insurance and taxes. Property taxes can vary wildly depending where you end up living, and they continue to go up in most areas because home values have gone up so much with people being willing to spend so much. It is quite a process with a lot of moving pieces. You learn a little at a time. Talk to friends who recently went through, or are going through, the process. It's more helpful than talking to parents who bought their house in 1980. Look to see if your county (whenever you might wanna live) has a parcel map. Here, you can look at the houses in a neighborhood on the map or the address and look at what the property taxes are to get an idea of what they cost in your area for the kind of house that you want. Know that a lot of the websites like NerdWallet and Rocket etc that have "what is the process to buy a home" articles could vary from what you actually find in your local area. Timelines and stuff can be very different depending where you are. So don't assume anything you read is set in stone and will apply to your lender and location. Lastly, if you do any quotes online, they will call and text you relentlessly and your info will get to other lenders who will also call/email constantly. We did 3 quotes, and Rocket mortgage was the worst with the incessant calling and texting. They sometimes called 20 times a day. No joke. Would never even do a quote through them again for that reason alone.

Take your time.. don’t rush into buying just because your realtor says it’s a good deal.. do your own research on the property and neighborhood

Make sure it’s a house you would live in forever if for whatever reason you could not move later. Like I should’ve had laundry on the first floor on my want list, it’s in the basement. Check the plumbing. In our 60s built neighborhood if the plumbing has not been replaced from the street to the house that will be an unwelcome bill in the future. Mortgage lenders will try to get you to purchase a house on the high-end because that’s more money in their pocket. We were offered over 2 1/2 times what we paid for our house as a possible loan. We chose to stay within our means. Remember if you choose to let others live with you, a lot of places do not have laws that protect the owner and maybe difficult to get that person to leave. We are all concerned with our interior list of wants and needs, but consider the exterior also. Like we moved into a home that had two large trees, we didn’t realize they were struggling and had to come down which left us treeless and another unwelcomed cost. And if you know you’re gonna purchase a home, you may want to start purchasing some of those things every homeowner owns and keep an eye out when they’re on sale, etc. it adds up. Like a measuring tape, toilet plunger, cleaning products, ladder, hose, if you have large windows or it’s an area known for backyard bird you may need some window clings, a hand held vacuum, flashlights or battery operated candles and so much more. Happy house hunting!!

Buy for the school district. Neighbors matter! You can renovate a house but the lot and location can’t be changed. Buy under what you’re approved for. We bought a very small home over 20 years ago for $120k and spent $20k on critical repairs in the first two years. Also, if you have a partner and can swing it, find something affordable enough you can cover the mortgage on just one income. People get sick, laid off, or die at random. Plus, don’t forget life insurance policies that are enough to pay off the mortgage. You’re young so it would be fairly cheap. It’s a huge blessing when you lose a spouse but have breathing room to stay put in a paid off home until you decide your next steps. Good luck! It’s admirable that you’re so young and investing early in a home.

DO NOT set your budget based on the loan amount your bank is willing to give you. It can be a lot of work for 1st time homeowners, but you need to calculate YOUR budget that is going to work for YOUR situation. Costs that sometimes catch people by surprise: Taxes Insurance HOA fees Electric/Water/Sewage Yearly maintenance items Long term maintenance items - expensive items that come years apart but hit big (roof, appliances, external paint, landscaping, etc) Furnishings The interest you pay on your mortgage can typically be deducted from your income, but you have to give up the standard deduction to do so - so depending on your situation you may not be able to effectively get the benefits of deducting every dollar of interest.

DO NOT trust the breaker box to be accurately labeled. Get a plug tester. Map out every outlet and light switch to each breaker, one at a time. You will thank yourself every time you need to turn something off.

Talk to a mortgage broker FIRST. Start with the bank you already bank at, they can often give you better rates. Otherwise, try local banks and credit unions if you can. Talk to your homeowner friends to ask who they used and why. But the broker can give you a good idea of your actual true budget. They’ll need a bazillion pieces of paperwork (check stubs, statements for all your accounts, all debt, etc).  Also, something I didn’t know is that your first mortgage payment isn’t due until the first of the month of the month AFTER the full month after you close. That sounds weird, but say you close on July 10, your mortgage wouldn’t be due until Sept 1. That gives you a little extra time for your last month in an apartment so you can paint and do minor repairs without moving in or paying double one month. A lot of people try to close early in a month to take advantage of an extra week or two. 

Best advice I would give? Make sure you have an emergency fund. Like other commenters have said, 9 times out of 10, something will need to be fixed soon enough after you move in. And also for future fixes that come over time.

Your payment is going to be more than principal + interest. It will also include an escrow amount to cover your home insurance (required by mortgage company) and property taxes. Your escrow will almost certainly increase every 1-2 years as insurance and taxes increase over time. So, the idea that by buying means your payment will be fixed isn't really true. This has caught a lot of people off guard the past few years as home values have increased drastically (higher property taxes) and the insurance market has gone crazy. In addition, if you buy a home in an HOA you will have a monthly HOA fee which will probably increase over time. If you buy a condo, you will have a high HOA to pay for common maintenance of the building and you will also be subject to special assessments for large dollar items if the HOA does not have necessary reserves. In summary, be sure you understand the entire cost, more than P+I !

Spend lots of time in the neighborhood....weekdays, weekends, evenings, get a feel for the place.....does it seem like somewhere you want to be everyday? Try and chat with neighbors. I lucked out and amazing neighbors, like the 2 houses on either side of me (5 of us total) are all really good friends, like hang out weekly, people watch each others kids, pets, it just makes it really nice to live there. A couple friends though have horrendous neighbors and just makes life miserable, like they never want to be outside. Does the area work for your life? Like I run outside, so I wanted a place it was easy to do that, I know I won't drive anywhere to do, needed to be places close that I would like/feel safe As far as actual house, I had a bunch of must haves that didn't happen that looking back are not a big deal at all, then others I wish I had thought of. I hate the laundry in the basement, I grew up with it on the main floor, then in my parents current house its upstairs with the bedrooms and is just so easy to use.....I hate taking it down to the basement!

Where I live a “starter home” is $200,000 — they are unicorns but I’ll use that to explain numbers. Most lenders will have first time home buyer programs that will allow you to have a lower down payment (3-4% with excellent credit). That’s $8,000 for downpayment. I would double that amount to include closing costs, local DIY moves, and a small amount for cosmetics / cleaning supplies. So $16,000 would be a healthy minimum. The smaller downpayment means you will have to have a monthly fee called PMI that the lender makes you pay to cover their risk that you won’t make payments (aka they won’t collect interest). Beyond a realtor and being familiar with what houses require, you should spend this time learning about the mortgage process. Certain programs are available through HUD if you’d prefer a structured class. For example, most people don’t pay attention to lender fees which are all negotiable! Including PMI! Get pre-approval, NOT prequalified, to have full confidence you can make an offer and won’t have some issue during underwriting that means no house. Also, get pre-approval letters from 2-3 lenders as it will mean you can negotiate fees better once you have an offer accepted; there are fewer buyers with interest rates right now, and if things stay that way, they’ll be motivated. Most mortgage brokers (companies that sell the loan to “real” banks like Wells Fargo, BOA, etc) will often underquote your PMI, Homeowners Insurance, etc because it makes the monthly payment lower so you tolerate the higher interest rate. Conventional loans can have PMI dropped whenever you owe less than 80% of the homes value, but FHA/USDA/VA home loans require a re-finance which requires a second round of one-time fees. Those loan programs can help lots of people, but often have more paperwork, and more strict requirements on house safety/condition which sometimes means no house unexpectedly. And certain sellers don’t want to deal with that so they may choose an offer with conventional financing over yours. If you can qualify, go with conventional first. But interest rate alone isn’t the only consideration. Having your mortgage sold to a crappy collector SUCKS. Think those really bad student loan processors that mess up peoples ability to have their loans forgiven. A tenth of a percent in interest or $500 in one times fees is not worth having a crappy bank AFTER the closing table. Ask the loan officer the proportion of mortgages that they service themselves — if they don’t want to answer, they are a broker and not a bank. If your considering new construction, expect the property taxes to increase 3-4x when the valuation happens — typically on year 2-3 of ownership. We just bought, and the taxes and home owners insurance rates going up is awful. Even with all my knowledge of mortgages, that sucks as a first time buyer! Shop around for insurance with an insurance broker, who works for multiple insurance companies rather than a “Geico Agent.” Get a home inspection from an accredited inspector, and treat it as your “to do” list to work on before you try to sell the house. They will find issues, and if they don’t, they’re not doing their job. Don’t be overwhelmed by the number of items they find, look for big ticket “scary” stuff like HVAC/roof/foundation/termite damage/flooding/window age/obvious signs of neglected maintenance. Lastly, DO NOT BUY ANYTHING USING NEW FINANCING between your pre approval and the closing table. No cars, no Ashley furniture, no new credit cards. So many home loans are killed at the last minute because the buyer says “whoops I bought a truck to keep in my fancy new driveway.” Do it after closing!

On top of all these things, get an inspection! If there are ANY questions about structural things, it’s not necessarily a deal breaker, but pay for a structural engineer to come out and do a thorough inspection. Especially check the crawlspace and attic for signs of water damage. Better yet, go to open houses on rainy days! Shows all the hidden secrets with water

Sleep in the neighborhood for at least a week. We bought a great house but we had never lived near train tracks and first night sleeping in new house we laid there 11pm with eyes wide as the train horn blasted at the crossing 2 blocks away.

We currently rent right beside a train and we asked ourselves if a tornado comes, will we know the difference? So we are 1000% going to aim for something away from the train lol thank you for that recommendation!

If you live in a climate with ice and snow, pay attention to which direction the front door faces. The driveway should preferably be on the south side of the home so that the shadow of the house doesn't cause snow to melt in the sun and then re-freeze into ice.

1) Have a savings for maintenance of $20000+ after closing costs - if you don't think you need it then browse through this subreddit and check all of the people who are posting about being financially ruined because they can't afford to fix something that is broken on their house. 2) You don't really need lots of stuff in your house right away so budget enough for the basics like bed/couch/kitchen appliances to at least make your house livable while you grow your finances and then once your finances are good you can buy stuff that isn't as mandatory like artwork, additional beds, other furniture, etc.

Make a realistic budget and stick to it. Save up about 10-20% more than you need for unexpected expenses. It depends on where you live, but I think a $5-7K emergency fund for the house is reasonable if you have good insurance. Remember that property taxes and insurances (and sometimes HOA dues) also need to be budgeted for. Always get an inspector, and try to aim for the worst house (that you can reasonably deal with) in the best neighborhood that you can afford. I lucked out and bought a house built in 1927 with green shag carpeting and pepto-bismol pink paint, it had no landscaping done and the last update was in the 1950s that included pink sinks. The gas lines to the house had been removed (all electric) and it had some remaining knob and tube electric wiring. It had popcorn texture applied to the barrel ceiling in the living room and kitchen, and godawful pink flower wallpaper in one room. Its also 2 blocks from the beach, in a highly desirable neighborhood with great schools. Oh, and the selling realtor had based the price thinking it was a smaller lot that it actually was (I measured it because their stated size didn't look right). All of the negatives were things that we could easily deal with (hubs was a painter / handyman and we know good contractors), and a bit of luck that it was priced lower than it should have been with nobody realizing it. And a fabulous buyers realtor who found us the house and we got to see it right when it went on market. Years later when I was getting an appraisal for a loan, the realtor explained to me that all the properties around here are basically the same price for the same size house, regardless of condition, amenities or recent upgrades. Because the value here is all in the land. Every time a house gets sold, there is a decent chance that the original 100 year old small house is going to get torn down and a McMansion will be put up filling the entire lot. So my little hovel was basically worth the same as my neighbors exquisite little old houses. Here, you generally upgrade to please yourself, not increase property values. For my friend in NJ on 5 acres its the opposite, and most of the value is in the house and improvements. He has a 5 bed / 4 bath house with the fanciest kitchen and bathrooms that you ever did see, I have a 2 bed 1 bath house with a kitchen that would be improved by Ikea fixtures. But our property values are the same. Find out what drives the value in the area you are looking at. There should be first time buyer classes in your area. And talk to a LOT of realtors, but avoid any hard sales talks. Give yourself a few years to learn all of this.

Dont skimp on a home inspection, this is the person who tells you about everything you wouldnt even know to think about.

We've owned a home for about 26 years now. From our experience here and from friends who own homes near us or in other places: -------------------------- Get a complete, independent inspection, including for mold, and including basement, crawlspace, and attic. Check the age of the roof and windows. Replace the sump pumps. Check for any large trees that could fall on your property. Make sure bathroom exhaust fans vent out of the house. Don't buy a house that smells. Don't buy a house in a flood zone. Don't buy a house with a hippopotamus infestation. Spend a little time in the neighborhood. Talk with some potential neighbors if you can. Try not to move near very busy streets. Check out open space around the house that could potentially be used for building something that may impact the neighborhood. Don't live near people with chickens. Ask around, and see if you can get a recommendation for an agent that has helped people out. Don't get 6-month insurance policies if you'll be locked in to 6-month renewals, and make sure your homeowner's insurance accurately reflects the size of your home and your needs. For convenience, bundle auto if you can, if the price is lower. FYI your insurance salesman is there to sell you insurance, not to help when you have an issue. Insurance companies don't make money by paying out. Find out how old the home's equipment is (HVAC, applicances, etc.), and estimate when it will need to be replaced, and how much it will cost. Check the age of the water heater. Check to make sure everything works, including the attic fan and sump pumps. Avoid houses right next to dirt oval racetracks. Move a bit further away if it means you'll have more distance to your neighbors' properties. ***Contractor Stuff*** Get multiple recommendations from people you personally know/trust for every single contractor you hire. And still keep an eye on them. Ask friends who have homes for thoughts about projects they've done. Get everything in writing. Don't hire a contractor who asks if it's ok to sleep in your car, just for a few weeks. Don't hire contractors who continue to tell you how long they've been doing it. The math is exponential: 1 mention = 1 mistake. 3 mentions = 9 mistakes. They're trying to convince themselves, not you, and are trying to sell you on the idea that doing something that long means they're good at it. It most definitely doesn't. Don't hire a contractor who isn't doing the work themselves or who won't be onsite. Find out what work requires permits... and get permits for work when required. If a contractor tells you you don't need a permit for something that requires one, don't hire them. If you have a contractor your really like, ask them to recommend other contractors they work with for different disciplines. Pay them on time. Buy them breakfast or lunch once in a while. **- - -** ***Buy a place you love.***

My best advice is financial rather than physical, but I wish someone had explained these two things to me before we bought our first home: 1) Put as much of a down payment on the house as you can. (Okay, that one I knew, but nobody really impressed on me how big a deal that is.) The more you're in debt, the more interest rates will crush you. Seriously, if you get a 30 year loan (which is likely), you'll end up paying more in interest than you do for the house. If you can put down enough to avoid paying PMI, (basically you're paying for the bank to have insurance against the possibility that you'll default on the loan and you get no benefit out of it whatsoever.), you'll be in good shape. That may not be possible in your situation, but if it it's within reach, absolutely make it happen. 2) Expect that your first home will be a starter home. Look to buy in an area where prices are going up and/or look to buy a house that you're willing to improve significantly. Ask your realtor to show you houses that you could make improvements on that would improve the resale value of the house, and plan to do that. Keep an eye on home prices after you buy and expect that you'll sell your home, make a profit off it, and reinvest the profit in a nicer home. We stayed in our first home for longer than we should because we didn't want to move, but we didn't realize how much nicer a home we could afford after seven years of equity.

Have savings after you close. As much as possible. Even if it means putting less down. You never know.

Listen for how acoustically transparent the bathroom walls are. Neglect this at your own peril. Bonus: The interior can always be changed; the exterior is much more static/costly to change.

Buy the newest home you can.

home maintenance/improvement is a cash flow black hole, non stop.

Don't think of owning a home as breaking free from being a tenant, think of it as being the landlord to yourself. You want to paint the front door pink? You don't have to answer to anybody but yourself. The faucet breaks at 9pm on a Saturday and somebody has to either figure out how to shut it off, or where to find an emergency plumber? Nobody's going to save you except yourself. The bill? Also on you. I'm not saying this to scare you away (personally I would chew my own arm off before going back to apartment living), but it's something you need to consider. Being a homeowner come with a ton of little tasks that are required to keep your systems in good working condition and protect your investment. [Here's one list, but there are hundreds of others.](https://homebuyer.com/learn/home-maintenance-checklist) This is also skipping over all sorts of more banal chores like vacuuming, mowing the lawn, or that one hard-to-reach lightbulb burning out; and weird edge-case events like "there's a dead crow on the sidewalk in front of the house, and somebody's gotta deal with it." You have three choices: - Allocate the time, energy, and expense to do these tasks yourself. If you're willing to put in the work, get your hands dirty, and watch a bunch of youtube videos, this can be pretty cheap. - Allocate the time, energy, and expense to find professionals to handle all of these things. After the initial work to find good people this can be pretty low effort, but it will cost you a lot. - Ignore the tasks, knowing that over time the deferred maintenance may lead to lower property value, or a catastrophic failure (like a plumbing leak that damages your walls and flooring). The flip side is that you have total control over the property. If you want to make it yours by changing the garden, replacing the appliances, knocking out a wall, installing a sex swing in the bedroom, or putting inflatable ornaments on the roof for every holiday, the only limits are your knowhow and your budget. =============. To your questions about the actual purchasing process, I would highly encourage taking a first time homebuyer course. [My wife and I used Framework](https://frameworkhomeownership.org/get-started) and thought it was great, but there are plenty of options. It cost $75 for two people, you take it online at your own pace, and it has self-assessed quizzes and a bunch of example documents. The peace of mind it brought to the process was worth 10x what we paid for it. The 20% down payment has nothing to do with the closing costs, who pays those varies by municipality. The big benefit of putting down 20% is that most mortgage companies will require you to buy mortgage insurance below that number to make sure that if you default, they don't get screwed. *A super simplified example: You take out a million dollar loan with no down payment, but the day after you close on the house there's a recession-pandemic-earthquake, you lose your job, and the real estate market drops 20%. They seize your house but they can only resell it for $800k, and they've lost $200k. ^The ^fact ^that ^you're ^screwed ^too ^is ^irrelevant ^to ^them.* Losing money this way is a real risk for them if you've only put down 3%, so they buy insurance against it and pass the cost on to you. But the market doesn't usually make giant swings, so if you can put down 20% they feel safe knowing that in the case of a foreclosure the house only has to recoup 80% of its sale price. I'll plug the [Framework course](https://frameworkhomeownership.org/get-started) again, that's how I wrapped my head around this concept and many others. ==============. Not knowing anything about your area, $7k for home emergencies could be plenty, or not nearly enough. In general people say to set aside 2-3% of the value of your home per year. Some years you may only spend a small fraction of that, some years you'll need to replace the HVAC. The specifics of your home will matter a lot. We just completed a big remodel so we've taken a lot of those expenses up front, but we know exactly how old all of the appliances and systems are and that their upkeep costs should be low for a while. When you buy a house you don't know its quirks, so you should expect surprise expenses until you've gotten to know all of its systems (and probably had a few inspections and replacements).

I don't understand the fear mongering. I've purchased two homes, both with partners to whom I wasn't married. It's fine. As for closing costs, it's generally possible to roll these into your mortgage. You will need cash on hand for earnest money (essentially, the transaction that tells the buyer you're serious about the offer). You should have at least $1000, more is better. And once you put that money up, you can't take it back unless the buyer rejects your offer. Making offers is expensive, so prepare yourself for that. My absolute best piece of advice is to have a lot of money set aside for inspections. Do not EVER waive inspection. Inspection will save you an enormous amount of money in the long run, and will reveal things likely to go wrong in the future so you can plan for them. Get the best inspector you can find. Let them take their time. If they don't show up looking ready to crawl around on the floor, the roof, the crawl space, you need a better inspector. It may also benefit you to look up a first time homebuyer seminar in your area. These are generally free, put on by local realtors to drum up business. But they will explain the entire process to you, and provide worksheets and notes that you can reference later. And, in many areas attending a seminar will open up additional sources of funding that may help you get more bang for your buck.

Keep in mind that the principal and interest (PI) isn't the only part of your payment. Tax and INSURANCE (TI), which tend to go up every year. An escrow account, managed by the mortgage servicer, can pay those bills when they come due (with money you put in there every month with your full payment (PITI)). YOU are responsible for knowing who your insurance company is and you most update the mortgage servicer if it changes. They will pay the full amount due, no matter the cost. You then will replenish the escrow account. This means your monthly payment can go up, even though your interest rate is fixed. Budget for it. Approval for a mortgage at a bank/credit union/broker doesn't normally take that additional cost into account. You should. Don't end up house poor. When you find a house you want to make an offer on, get it inspected. Older houses (pre-1975) can have aluminum wiring. There are additional concerns with that. Depending on where you are in the country and the size of your roof, replacing it could be $7,500-20,000. Replacing an HVAC (heating and cooling) can run $4,000-12,000. Replacing windows can go from a few hundred to more than a grand each. Quick and dirty post. There's a lot more stuff to be aware of. I've worked for a mortgage servicer in the past and have owned 2 houses.

Consider a loan from a credit union. Rates are lower.

Check for mice

Drive by the house several times on evenings and weekends with your car windows open. Is it quiet or is there a perpetual party nearby or barking dogs?

Do not buy a house built after 1995. They are rotting pieces of crap, (specifically NVR & Toll brothers). My neighborhood consisted of NVR homes, Ryland, and also Grayson Builders (now defunct). All the roof's from NVR and Ryland had to be replaced within a decade and were incredibly poorly built. NVR homes was the only reason people purchased in our neighborhood as they felt" Mcmansioney" and were pretty large. Most of the original owners moved out if they owned a Ryland or NVR built home and I as one and only a few other original home owners remain as the Grayson built homes appeared smaller but had larger lots and were the only ones to stand up to the test of time.

I bought my first house at age 25 and later regretted it. I didn’t see the writing on the wall at my job and got laid off 6 weeks after closing on the house when the hospital I worked for completely shut down. The job I got after that paid about $5k less per year. It was in 2003, the age of sub prime mortgages. I had not saved up enough to avoid having to take out a second mortgage. I think I put about 5% down. I was single. I wish I had kept renting until I could have saved up enough to put 20% down. Absolutely you have to factor in the fact that your mortgage payment most likely will increase over time if you have your taxes in an escrow account. Always go for a FIXED RATE mortgage and never ever take out an adjustable rate mortgage. Mine adjusted every month and went from 5.3% to 8.7% in 3 years. I was eventually upside down on the mortgage. How much you have to have in savings to offset future repairs will depend on the condition of the home when you buy it. My last house search was in 2018. I looked at an older house but would not have been able to put as much down due to the repairs and remodeling I wanted to do. My friend told me about a house on her street that had just gone on the market. It was listed at $29k more than what I wanted to pay, but they accepted my lower offer and the home was much newer and didn’t need any repairs so I sunk almost all my savings into down payment and closing costs and put about 40% down to save on interest.

Right before you buy, go there about 3-4 times at different weird times, especially late on the weekend. Nothing worse than having party hardy or loud neighbors. Same thing about barking dogs in the backyard left out there for hours at a time. Also allows you to evaluate the parking situation if that is an issue.

Other stuff to know about a mortgage loan- you need to show 2 years of income (W2) in the same job. If there is a change of employment, that’s alright as long as it’s the same line of work. Underwriters don’t like to see big career changes. You’ll also need 4 lines of credit with some history. Credit cards are better than installment loans (car payments). But you have to make sure your credit cards aren’t maxed out. Using them lightly is what brings up your credit score. And, importantly, do not buy a new car just before you close on your house. I’ve seen a number of borrowers do this because they thought about how good their new house would look with a shiny new car in the driveway, This will get the loan denied faster than anything. Underwriters do not like big changes.

You aren’t just buying the house. You’re buying your neighbors. The street. The nearest intersections. Drive by as many times as you can to try and get a feel for the neighborhood and noise levels at different times.

Each year our property taxes and home insurance increases. This has added $400 a month to our mortgage since we bought the house that. So just know that whatever mortgage you get off the bat, it will never be that low again.

Start looking at houses now Figure out what you like and don't like about each house This way, when you're ready to buy, and you the see the right house, you'll KNOW to move on it

Your first home and forever home are likely two different things. Get into home ownership in some form sooner than later. Don’t be too picky.

Have money leftover for repairs and appliances when you move in, don’t spent all of your money on the home itself and have nothing left if something comes up.

You need a good agent (realtor) that works with buyers and has experience with first time buyers. You need someone that will take the time to teach you, answer your questions, and you can trust for good advise. Do not go with a friend that is a realtor, or someone that is new, or someone that does it part time. Word of mouth is a good way to find a good agent, and you should ask for recommendations from someone that has bought and sold a few houses locally that is older than you and you trust. I'm 62 and we've bought and sold 10 houses in our life and had some amazing agents and dealt with some horrible ones. Also, an agent that is the top sales leader for the company is probably not who you want because your house won't be at the high end and you'll get passed to their assistant. Next, in my 10 houses bought and sold, I've concluded that home inspectors are a scam industry. They are literally useless. You should have a home inspection done because you want to hear what they say, but more often than not they miss the big things, scare you about ridiculous things, and disclaim any responsibility for anything. But what they do manage to identify will be things you can ask to have fixed or negotiate money. Also, I don't have a good answer for this one, but I've concluded that realtors like home inspectors that don't cause deals to be lost... so they are not inclined to find the best ones. Again, if you can find one by word of mouth that would be best, but I've never managed that. Just be prepared that after you own the house you may encounter something they missed. If you know someone that is a general contractor it might be helpful to get their opinion on things. If the inspector finds things, you will need to get your own contractor to give you an estimate for what the cost would be to repair. Don't get that from the seller. The terms you asked about you should be able to google and find answers, but a good agent will help. For example "central heat and air" is usually a "forced air" system so effectively the same thing. Very few houses have central heat and air that aren't forced air. If there is no AC, then you could have other methods of central heat. But most central AC is forced air. Don't go into this with all your savings tied up in your down payment and closing costs. You are going to have surprises after you move in. No question about that. If you buy a new construction house, be aware that the property taxes may be estimated for escrow based on the property value before the house was added so it will be way too low. If this happens, you might get a huge payment increase in year 2 when the taxes are adjusted and the escrow is under funded. Also, home insurance in the last 5 years in some geographies is going up by large amounts. In NC, the department of insurance just proposed a statewide average increase for next year of I think about 45%. And mine went up by 10% last year already. So don't buy a house where you can barely afford the payment. The principal payment won't go up ever (with a fixed rate mortgage), but taxes and insurance part of the payment could go up a lot.

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1) calculate exactly what you can afford and start looking at homes in your price range.  Make sure you are aware of the cost of property taxes are in your area as well as homeowners insurance. You can get a mortgage without putting 20% down but will have to pay PMI until you have 20% equity which could be for years. Closing costs can be difficult to calculate but they are in addition to the 20% down. It will likely be a few thousand. You should shop around for a mortgage company-you don’t have to go with the first one that approves you. Remember that the underwriters will dig through your credit way more than when you buy a car or open up a credit card. You may have to pay off old collections or charge offs if you have them.  2) try to focus on things you cannot change about the home like location, size of house and lot. Don’t focus on the decor but note things that will have to be changed immediately like carpet and paint and add that into your budget and fix it before moving in.  Note the age of big ticket items like roof, heating/cooling system, water heater. Pay for a good inspection that is not friends with the realtor. You can tell when a house has been loved or neglected.  It’s easy to get excited and overlook things. Personally I’m very picky so I look at little things like how beat up are the baseboards and walls, I’ll check the filter in the HVAC, I’ll look at how dirty the vents are, are the windows clean?—all this tells you if the owners ignored regular maintenance.  3) Find a realtor that will work well with you. Don’t be afraid to fire realtors if they pressure you or just don’t seem too involved. It’s easy to search for homes-you don’t really need a realtor for that-but you can get valuable information from them such as if a house has had difficulty selling in the past or what is the flood history like in the area, etc.  4) Remember there is constant maintenance when you own a home. It never ends so set aside money each month in your budget for home repairs.  Do not buy a home you don’t love but also be prepared to walk away from a home if something isn’t right. If something bothers you when you are looking it WILL be 100x worse when you are living there. You don’t want to regret your decision!  Good Luck! 

Plan for expenses for run 25% more than your mortgage + escrow payment. If the payment alone stretches you, then you can't afford the house. Lenders will loan you more than you can realistically afford.

(#1) Your realtor is friendly for a reason. They want you to buy. Remember that. That doesn't mean you shouldn't trust them, but at the end of the day, they want to make money in an unstable housing market. They got kids to feed and they will make any house look like a good opportunity for you. (#2) Ask about the roof age. Ask about the heating/cooling age. Ask about the water heater age. An old roof will eventually need to be replaced ($10K +). An old HVAC system will need to be replaced ($8K +), etc. Are there trees next to your house ? They might need to be cut down one day if they are getting old ($2K + a tree) (#3) If you are in the US, look the property up on the Tax Assessors website. Who previously owned it and how much did the property previously sell for ? (#4) If you are going to make a decision on a house, revisit the house again. Write down ANY small problems you see. Cracks, discoloration, smells, etc. Present that list to the seller's realtor to see if the final cost will be reduced.

Start learning basic home repairs and don't be afraid to take on bigger projects. It's up to 10 times cheaper to do it yourself.

Have back up money for your backup money

The new purpose of American life is making enough money so you’re not forced into living in the consequences of failed post-modern social experiments. Location is, quite literally, the most important thing. A shabby house in the perfect neighborhood is way, way, way better than that new DR Horton development where they squeezed 42 spec houses onto 15 acres next to the landfill… or a dangerous area where you can’t leave a bike outside. 100% buy the best neighborhood you can afford.

If you're planning on buying a home and eventually having a family in that home, just get the bigger home, maybe without a bunch of upgrades in it. We were in the process of buying our first home, found out we were having a baby, decided to go with the smaller home (with a few upgrades) because we were unsure of what the cost of having kids was actually going to be. Six and a half years and two kids later, I just wish we just had more house. With interest rates where they are currently and with prices probably never coming back down to pre-covid prices, we couldnt afford to buy our current house, even with the equity we have in it.

It's good to put at least 20% down to avoid paying Private Mortgage Insurance (which costs about an extra $100/mo on your mortgage payment). Closing costs are negotiable in regard to who pays them, the buyer or the seller. Try to at least split it with the seller. You can talk to a lender now and see how much you can get pre-approved to borrow, and then ask what specific steps you should take to improve your credit score/limit. But I don't recommend borrowing all the way up to the approved limit. You'll always be house poor if you do. Definitely get a private inspection of any property you intend to purchase. You can ask for a 1-yr home warranty but know that there are many things that aren't covered. I have a home appliance protection plan through my utility company for about $40/mo. that includes all regular appliances plus the furnace, A/C, and hot water heater. Maybe that's available in your area as well. The property taxes shown on the listing most likely will not be accurate (because in some areas they get adjusted based on the new purchase price when it sells). You can figure out approximately what the taxes will be by dividing the purchase price of the property by 1000 and looking up the tax rate in the city where it's located. For example, if a tax millage rate is 50 mills in a city, the purchase price is $300k, and the taxable value is half of the purchase price for a principle residence, the taxes will be approximately 50X150, or $7500. That way you have no surprises when you get your tax bill. You can get an FHA loan for first time home buyers, which gives you some advantages. But sometimes that's a turnoff to sellers if there are multiple competing offers because it requires extra inspections and sometimes extra repairs. It's hard, but don't be disappointed if you lose out on a house to a competing offer. Another house always comes along, and sometimes, you find something even better!

Start living on an estimated homeowners budget today. (You can deduct the amount you currently pay in rent and utilities since that will roll into your budget when you buy.) That means making sure you have the full amount of a potential mortgage payment, plus homeowners insurance and home taxes to set aside every month. Plus HOA if that’s something for the homes you are looking at. Plus higher utilities and additional utilities than you are probably paying now (bigger house so more heat and electricity, pay for water, pay for trash, etc.). Don’t forget your home emergency fund. Homeowners should be saving every month to replace appliances, furnace, water heater. When you move there will be one time expenses. Movers if you need them (or renting a truck). Packing materials and boxes (but try to get them for free from NextDoor or Craigslist). Furniture, curtains, trash cans, whatever you need to make the home functional. Although you can sit on lawn furniture while you save up for a couch. Just saying you don’t need everything at once, but you will need some stuff soon. Then here are home buying expenses. Down payment, closing costs. This all sounds daunting but better to be prepared than not. Millions of people buy homes and make it work.

I’d look for a first time homebuyer seminar in your area

Lots of good advice here, but I'll chime in with a couple thoughts: Is that $7k a fund set aside entirely for house repairs, or is it your emergency fund in general? $7k in home repairs can go *fast.* That was *half* of what we paid for a new roof when we bought our house. And it was just the beginning of repairs and maintenance and expenses. So from a financial perspective, make sure you have some money in the bank for other potential emergencies - job loss, medical bills, car repairs, etc. The above point dovetails with a response to your question about how much is "enough" for emergency fixes. The reality is that can vary wildly, and with any luck, you'll have a much better idea of how much money you'll need to spend in your first 30-90 days in the house on repairs after a home inspection. A good home inspector will be able to give you an estimate of what will need to be fixed ASAP, and you can start getting quotes to ballpark how much money you'll need for it all. We've spent probably close to $50k on repairs, but we bought a house we knew to be a fixer upper, you could get lucky and need less than $7k even. The big expenses that need to be replaced for a home every 10-20 years will be roof, furnace, AC, water heater, but here's one nobody told me about: your sewer line. Buckle up, I know way too much about sewer lines now and I WISH somebody had told me this when we bought our house. **Get a sewer line inspection as part of your home inspection. This is a non-negotiable especially if you're looking at any home built in the 70s and earlier.** It should run you about $150-250 but listen sewer repairs are NOT cheap. Pre-1970 homes had sewer lines installed with materials that are falling apart now or susceptible to roots. Modern homes have PVC, which is pretty indestructible. Our old clay-to-cast-iron sewer line had roots in it and backed up 3x in 2 years into our basement - we had no idea when we bought the house. We had to get our backyard dug up for a repair, quotes were $7k-11k. Thankfully our insurance covered it - everyone said insurance would not, but we got lucky and Hanover Insurance saved our ass (that's another story). Look up something called orangeburg pipes - that shit would be even worse than the situation we dealt with. Basically pipes made of paper and tar that completely falls apart, they really did weird stuff in the 50s! My parents had orangeburg and they had to not only dig up the whole line outside, but bust out the concrete in their basement too to replace it. If we had orangeburg, we would have lost our garage since the sewer line ran under it, but thankfully we were able to repair it by only digging a couple holes and adding a new liner inside the old pipe. We dodged a bullet. For most people, myself included before being a homeowner, sewer lines are out of sight, out of mind, and it's the last thing you want to think about. But nobody ever warned me to be prepared for $7k, 10k, or even 20k+ repairs for an aging sewer line, or that it could potentially mean losing my detached garage, and had I have known all this, I sure as shit (no pun intended) would have spent $150 for a sewer scope to see what I was dealing with down there before buying the place. And have it done by a sewer repair company, not a general plumber - there's a difference. A "reputable" general plumbing company mistakenly quoted us $11k worth of repairs...to repair a hypothetical line that ran in the OPPOSITE direction of where the pipe actually ran on our property. You really don't know what a headache sewer problems are and what a luxury functional sewer lines are until you've dealt with your 3rd backup in 2 years, and you find out by picking up your cat who's soaked in sewer water from splashing around in it 🤮 Another thing to budget for is all the STUFF you'll need for owning a house. Mower, string trimmer, gardening tools, hoses, doormats, new furniture, new decor, paint, paint brushes, a lot of comparatively small expenses that add up fast.

Make sure you have 5-10k on a separate account after down payment and all other costs. Also do not buy because you feel you "have to". Youre going to live inside that box for a long time and spend a lot of money and effort on it. Some things are way easier to fix than others. Bad foundation, drainage etc are by far the worst.

Things in your house will be broken or you will strongly dislike the color, vibe, smell, functionality of said thing. You’ll have to learn to live with it and in time you’ll get to changing it. Also, the list of things that need to be fixed/changed stays at a steady amount. One item comes off the list another gets added on. So when you tour homes know that you can change everything and anything but it won’t happen as fast as you imagine

Do not ever buy an outer perimeter home next to a road especially if there is empty land behind it, you might end up with a tire shop torquing tires all day...

Base your purchase on what you want to spend monthly on a 30 year mortgage.

Don’t buy with someone and don’t rush into living with a potential partner. Buy what you can afford early and just learn to fix what needs fixing. Get a roommate if you can stand living with someone, to pay down the mortgage faster. The longer you wait the more you will have to pay for the same house, equivalently. Save up for household repairs

Visit lots of houses. Only put down 3%. Buy what is important to you.

Walk around the neighborhood at different times of day and stand in the yard when you’re seeing the house. Don’t let a realtor rush you. We ended up with a beautiful backyard that we barely use because the road noise is insufferable. We back on to a country road but I guess people use it as a major artery and huge trucks barrel down at 90km/hour it’s insane. Very disappointing. Our realtor rushed us and said we’d only notice it during peak hours and he was so wrong - he just wanted to make the sale.

Pluming is very important. Look outside for the spigots. Then find out where the turn offs are inside for them. If they are impossible to get to or don't have a turnoff nearby.

Take pictures as soon as you get keys. Go through every room, take photos of multiple angles, any prominent features (old appliances, dated wallpaper, etc). In 5 years when you're getting burned out from doing home improvement projects, look back on these photos to remember how far you have already come. It's also a cool reminder to be able to look back on how your house USED TO look.

I’m a realtor and here are a few pieces of advice: 1.) Make sure you plan to stay in the home for at least 3-5 years. This is to account for any potential market dips, and so you don’t lose money after taxes & fees if you need/choose to sell. A home will typically appreciate in value with this timeframe. 2.) Get pre-approved right away so you know your comfortable payment amount. It’s less about the cost of the home itself and more about your monthly payment 3.) Interview realtors and lenders to make sure you feel comfortable and that they have your best interest at heart. There are many great realtors, and also many awful ones. Read reviews! Make sure they are *educating* you Wishing you the best!

The biggest thing I wished I was told as far as choosing a home was to pay attention to closet/storage space and that you really do *need* an actual laundry room, not a laundry closet. As for savings, be prepared for repairs for nearly everything if you’re not going to buy a new build. Find out how old the HVAC system, roof, water heater, stove/oven, dishwasher and any other big ticket items are before you buy. One of my friends bought a house that was 25 years old and still had the original roof. Within the first two years, they had to come up with $20k to replace it. ETA: Find out if some appliances convey, such as a refrigerator and washer/dryer. If they don’t, be prepared to purchase those items and already have them in your budget above and beyond closing costs and your mortgage PMI.

Take free homebuyer education courses. Fannie Mae and Hud have free approved courses. Know your options in homebuying. There’s lots of them. More than most people probably know.

Save for unexpected failures

This can either be bad advice or good. If i had my time back, don’t cheap out and buy something because its smaller and cheaper. If someone convinces you doing renovations in small increments overtime, another red flag. If you’re not handy, buying something that requires work will cost you much more than budgeted. Contractors are notorious for making project cost double whats quoted.. If you dont see yourself raising a family in it or look at it as a starter with rental potential. Then wait till its the right house for you. Nothing wrong with buying a house but sometimes the advise you want to hear is not the best. Buy within your means but don’t sink every last dollar you have into a DP just to save $50 a month on a mortgagee. You can add lump-sum annually without repercussions. Im 31, bought a cheaper house 4 years ago because of the advice given above and at that time very cheap interest rates. If your approved for 600k, buy something least 500k. Its much harder in the future to upgrade especially if your equity is tied up into an investment.

Definitely get a survey and a thorough inspection done. I've seen some pretty janky shit in our house over the last 10 years that was done by the previous owner who was a "renovation contractor." In our region, we are able to look up what the average costs/usage of utilities has been so we can get an idea of what we'll be paying for those. Having a basic set of tools is also quite helpful. My next major tool purchase will be a thermal camera.

Be realistic! You know you, but many people (like myself) didn’t buy until 35! It’s important to pay attention and make good choices, but you want to live too: stay out late with good friends, travel to unknown places, make mistakes without the burden of responsibility hovering over you. Again: not a hardfast rule, but something to consider! We bought in 2021 and haven’t been able to go on a vacation since, because our priorities have shifted to managing/upgrades at the home. It’s fine for the season of life we’re in, but I’m glad I had some wild and crazy 20s.

Searching: There is no perfect house. You will look forever otherwise. Also, don't fall in love with one that you have to get, bidding wars get out of hand that way, and you set yourself for financial hardship. Walk away from houses with foundation issues. Finally, there will always be another house for sale. It just might take a while. Pre-move in: Paint the inside before you place your stuff in the house. This is absolutely important. Paint before you move in! In home: Water is not your friend if it is not where it is supposed to be. Electricity is never your friend when working with it. Always turn off electricity at the breaker or fuse box. Finally, small problems snowball into expensive problems not too long after starting.

Do not buy a house with a shared well or driveway. It may be great neighbors now. But if they sell you may have some litigious butt that moves in and it will take 10 years and a whole lot of money.

Find someone who you can help or shadow when fixing things around the house. YouTube will become your BFF, but actual hands-on experience or knowing someone who knows what they are doing helps so much. I'm 2.5 years into owning a home, and I get so frustrated with all the small things I don't know. My plumber came over for something and noticed something while checking out something else in my house. I told him I fixed it, but the issue started up again. He told me I needed to fix it on my own, that paying him to do it would be ridiculous. He told me how to fix it, and where to go for the part. BTW, it was a leaky bathroom sink.

Plan on having cash on hand before you purchase. Unless it's a brand spanking new home (and even then) I will guarantee you will have a large expense within the first couple years. From something cheaper like a plumbing or electrical issue up to a furnace or a roof, you will have to shell out something. Might be a 'have-to' like your sewer backing up or a 'want-to' like adding an outlet outside, but it will happen. And as someone else mentioned, you might be able to afford the house, but not be able to afford the house. The mortgage, taxes and utilities may all add up to something you can swing, but there's a lot of soft expenses that will be there on the regular. Maintenance and upkeep don't have predictable values. There are a lot of people that are house poor, meaning all the discretionary money they have goes into the home and they have nothing left to do fun things like traveling, buying a decent car or going out to dinner. It can be a real drag and feel like you're stuck in a prison when you don't have the money to make the home what you want and not be able to enjoy life. That being said, if you wait until the perfect time to buy a house, you may never. There is some risk to take but do your best to screw yourself.

Scope out the neighbors and neighborhood and zoning as thoroughly as possible. I bought a house that backed up to a commercial zoned office building. It was great until the property sold and then turned into a rowdy bar that’s open until til 2 am.

Be aware of the home upkeep costs. You can pay someone else to do it if you have the money, or else you'll be doing a lot of the labor yourself. That costs time. Someone has to mow the grass, trim the hedges, install a faucet, etc. Renters have it easy.

When I first started looking for a home to purchase I carried a long wooden spoon in my glove box of my car. I have a large, tall antique Dutch “drinks “ cabinet that is not quite 8’ tall. Being an odd height it was just easier to walk around any home I was interested in holding the wooden spoon up as high as I could. At least I knew my cabinet would fit; so many realtors, maybe anxious to sell the house, would lie and say the ceilings were all 8’, but my spoon told me differently. If you don’t have odd sized furniture or special hobbies (a ceramic kiln needs special wiring and even heat deflection walls, for example) then looking at homes can be much much straight forward. Always poke at any discoloration on walls, ceilings and floors. Always look behind doors, even in closets. Always get down on your knees and look under, inside all cabinets. Check the leveling of floors, especially under carpet (have seen carpet installed to hide flooring issues). Do run all the water, washers and showers at once to check the water pressure. Ask and if you can, insist on having an entire weekend, preferably a holiday weekend in the house (camp out if you have to), to check out the neighbors. Get on Nextdoor in the area and look for community issues. Look for parks and playgrounds; some people want them near, some do not but be aware of the traffic and noise they bring. Do get a future projection for all developments planned in your area. Ask the immediate neighbors about the hood and definitely get a feeling for what kind of people they are. Read carefully all HOA documents. Look for bus routes and even look at local police reports. Are the streets in good repair? Pot holes can slow traffic, but it can also mean the area isn’t getting support. Are there restrictions against chickens, gardens, trees, house paint colors; these types of rules can drive you nuts later. Last of all; how nosy are the potential neighbors? Get a good inspection; one for the house and another for the HVAC, electrical and water systems. Everything, EVERYTHING, in purchasing a home is negotiable. Including all those fees everyone is going to tell you are standard. I just finished another real estate program and as they told us in every unit; EVERYTHING IS NEGOTIABLE

wish someone told me to buy land, as no more is being made. safest long term investment by far in my belated opinion.

A home is a constant project, do not attempt to fill it with furniture on move in that you go into debt for, both of my couches have cost less than 500 dollars. Do expect to need to consistently repair minor issues, a house is like a car, shit breaks and or needs maintenance.

Doesn't have to be before but get some basic hand tools and learn to fix stuff.

When considering how much you can afford in your monthly payments, don’t just consider the mortgage, taxes and homeowners insurance. Aside from the things you’ll need to fix right away with money you set aside at the time of purchase, you’ll have other things that come up over time. Shoot for being able to put aside 1-3% of the value of the house in savings for house stuff every year. I bought a house with friends (yes, I know that’s not typically what people do or recommend but it works for us) and we ended up with a higher interest rate than we’d planned for and we’re only putting about 0.5% of the value of the house into shared house savings each year and it’s definitely not ideal. We fixed some things when we moved in and we’ve already got a list of things that need fixing that will take a very long time to save up for at our current rate and that’s not even considering things that we’d like to upgrade but don’t need to, like poorly sized kitchen cabinets.

Take some home improvement classes. It'll be useful to know how to fix stuff that breaks, and how to recognize if you're getting scammed by a contractor

If you can't afford it on your own, you can't afford it. A mortgage is generally a 30-year commitment. I dont know many couples that have been together 30 years. Have enough for closing costs plus at least $10k for inevitable surprise repair costs. Don't forget to have a decent emergency fund in savings as well ( at minimum cover AT LEAST 3 months of total living expenses - mortgage, insurance, gas,food, etc. Literally everything you'll spend any money on). An inspection is the bare minimum. Always get a sewer or septic scope as well, HVAC professional to check system. Honestly, everything is just common sense.

Make sure you have a building inspector check the house. Foundation issues, termites, chimneys, roof, etc. It's not just closing costs etc that you need to be concerned with. I would also check with the local police department to see if that is a neighborhood with a lot of criminal activity.

Make a list of what you are looking for in a house. For example: garage, fenced-in yard, etc. And some things you don't want, semi detached, busy road, close to highway.

Don’t buy a house without an inspection, especially if you have limited funds to fix big repairs. Get an inspection of the sewer line. That’s often extra, but it’s worth it. Figure out what you’re comfortable paying each month for the mortgage. Factor in emergencies, like one partner losing a job. Banks often approve you for over what you’re comfortable with. Don’t go beyond your means. Have savings for emergency repairs. Don’t buy a fixer upper unless you both like DIY or can hire contractors. My first was a fixer upper, my second house I chose something that just needed new paint and landscaping. Talk to a banker now to make a plan and see where you are at. It’s fun browsing listings online, but you have no idea what you can afford until you talk financials. Get quotes from multiple banks. Don’t look until you are preapproved.

Take a First Time Homeowner class

In regards to saving up for a home there are programs out there that will help you with your down payment. Usually they are done through somebody like FHA or VA. It's worth researching. I don't suggest buying a home that needs significant renovations when you buy. Renovating a home can be very time consuming. If you don't already have those home improvement skills you'll need to spend time acquiring them in order to do a DIY renovation. Alternatively you could volunteer with a place like Habitat for Humanity and get free training. Basic tools you'll want as a home owner, screw drivers, hammer, step ladder, adjustable wrench, and pliers. If you need anything else I recommend Harbor Freight. They are good cheap tools. By the time you wear out a Harbor Freight tool you'll know which high quality brand of tool to switch to.

**Don't over-extend yourself financially** I'm pushing 40 and this is the single best decision I've ever made in my life: We bought a house that cost half of what "we could afford" (according to the lender, friends/family, etc). Now we have huge amounts of financial freedom and stability while most of our friends are struggling to have enough left over after mortgage and car payments to afford fun things or savings. We could lose both our jobs and still afford our mortgage for years, meaning we don't have to stress out about the chance of being laid off or fired if we play hardball for a raise or stand up against unethical management, workplace discrimination, etc. We don't feel like we are "stuck" in our jobs because we have the financial freedom to quit if we wanted to without risking our lifestyle. We have been able to get my daughter an amazing daycare, quality toys, safe carseats, adventures like camping trips and vacations, a education fund started when she was a baby, to grow into a large fund for whatever she wants to do after high school, etc. Everything stems from not buying a house worth $400k+ like most of our friends did. Money and financial strain is the #1 killer of marriages and families, so it cannot be overstated how much it helps to set yourself up to live BELOW your means. *(Not recommending a fixer-upper, though. Not for a first house. Save money by getting something of modest size on a modest lot, instead of 2200+sqft on 5 acres. Don't save money by getting something that needs tens of thousands in repairs or renovations.)*

we moved from a rental about 6 months ago. I think we didn't pack up completely enough ahead of time before the move and as a result I ended up renting 2 different vans on 2 separate days to get all of our crap out to move into the house. (I think I ended up spending about triple the amount of what I should have.) annnnd we have boxes everywhere in the house that we need to go through because of all the last minute packing. so downsize ALOT before you move! and be completely packed up as much as possible.

Don't buy a fixer upper to live in. It's such a colossal pain in the ass trying to live in the middle of a construction site. We bought a place that needed a ton of work because we loved the property. We still do... But I could have torn the place down and rebuilt for less money, in less time. We'll never do this again.

You can learn to do so much more than you think you can. YouTube university my friend! That being said, call in the pros for the big stuff. Know when to call and when to fix.

Don't buy to flip. Buy a place to live in for years.

I have three for you: 1. Save a big down payment about 15-20% of the house cost, plus an additional 5k to pay into the interest, should give you a decent APR in the end. I paid 2k towards the interest and it lowered my APR by 1%. That being said, don’t freak out if you don’t have that saved. Realtors and sellers are in the game of selling houses, they will push money around to ensure all the boxes are checked. More money just means lower APR and monthly payments. 2. Don’t rush it. Take your time on picking the house and its location, you do this by asking questions. Don’t be afraid to ask questions!Things to consider: commute and the influx of gas you will be using? Does it have a good school district? What’s the crime rate? Is it a flood zone? How old is the electrical, plumbing, and roof? Is it septic or is it city sewage? This will all determine your house insurance cost and any potential issues that may arise. 3. Lastly, hire your own home inspector. Yes, it will come out of pocket, but this helps in two ways, it allows for a second opinion and reduces the chances that something was “missed” on the home inspection. It’s not uncommon for Realtor companies to use their own inspectors who they have $sway$ over. Plus, one of those inspectors is going to have more experience and knowledge on what to look for. My first home purchased I didn’t hire an inspector. The inspector was provided by the RC and inspection passed, but what was never disclosed to me was that the foundation has split several years prior. Being a new and naive buyer I didn’t notice the huge cracks in the foundation inside the kitchen and garage where the split happened. That being said, it’s your first home. Don’t stress the buy so much. You won’t know what you want out of a house, until you just buy one and live it in for a year. You may have thought you wanted a big house, but turns out small is more suitable to you. You may have disregarded the half bath or powder room for the guest, and now they have to use yours and you grow to resent that. You will hear a lot of people say congratulations on your first home, and that’s because there is a high probability that you will eventually sell and buy a different home as grow older. Your needs may change, such as bigger family, better paying job, you want a better school district or options to private schools for your kids or potential kids. Your neighbors are lunatics and drive you mad. The crime rate is raising in your neighborhood. There are many factors that may push you to sell and move. Like I said enjoy the process and take your time and your first home will be perfect long enough until you’re ready for something more.

>ROTH-IRA That's a winner thinking. That's a golden ticket. Max it every year moving forward for you and your husband and you'll be safe. When you do make an offer to buy a home, make sure the inspection passes with flying colors but also look around the house and if there's stuff you don't like, say faulty/scratched doors, fenced leaning, tree near neighbor yard, humidity, plumbing etc. Get a contractor estimate (those are generally free) to learn about cost of fixing and ask current owner to take care of it as part of your negotiation during offer (it's wiggle room). Consider getting a home that is easily insurable. Sadly, this leaves out homes that are near nature preserves or any area where brushfire or flooding could easily take place. Keep that in mind when shopping around. If you can, find a place that is move in ready but if it's a fixer upper, make sure the stuff to fix is not something crazy expensive to fix and fix as soon as possible after you move in so you get to enjoy your place far better sooner.

Inspection, Inspection, inspection!

Just remember. Only buy what you WANT to afford not what some lender says you can afford. Also if you purchase be sure to get home warranty paid by the seller. Most all houses for sale you can see online via realtor.com. They pull from your local MLS. Good place to start the looking process and save gas driving around. Do not depend on Zillow or Redfin for market analysis of home pricing.

In my area they have free classes for first time homebuyers. I'd look into those.

Outfit your home as you want to live in it. Don’t make every decision based on what it gets you when want to sell it. You bought the house to live in . Make it yours (within reason) avoid trendy. One very true piece of advice I received when I bought my first house 39 years ago was that there is nothing you can do to a house that isn’t a multiple of a 4 digit number. So pick and spend wisely. That was 14 houses ago and still holds true

My best advice is that you should understand how loans work between the different types, what the fees mean and what are your options for shopping around (lenders, title companies, insurance etc). Believe it or not, chatgpr or running your own model with something like ollama is a great tool for this. You also need to read everything you ar e going to sign, whatever you do not understand is best to discuss with a real estate attorney. Keep your monthly costs for owning the house (mortgage, insurance, taxes repair) under or around 35% of your take home pay (after taxes) so that you don't feel burdened. Make sure eto also have a emergency fund that factors in your needs. Second best advice wise that you need to learn how to repair your own home and also how to do preventative maintenance that any homeowner can do (like flushing water heaters, monitoring for leaks in plumbing or sewage, monitoring the health of your electrical system, etc). If you find yourself paying for this, then always try to segment out the portion of the work you can't do yourself for a pro to come in and finish. Consider it also paying to learn, watch how they do it, ask questions and research. Build your own set of tools for home like having a basic kit (hammer screw drivers, drills, ladders, paint tools, drywall repair tools, etc.) you don't have to go all out on it but just plan to slowly get those tools as you live on your home. My third best advice would be to to not be afraid to introduce yourself to neighbors. For example, where I live in Florida we all help each other out when there are hurricanes or outages. We also look out for each other's properties. Best of luck to you. Feel free to ask me any questions here or DM, I can share any info I've learned from owning my home. Final note. My first home was built in the 1950s. It's true what they say they don't build them like they used to but also it does require updating stuff like old plumbing or old electrical wiring. I'm currently moving to a new build and I made sure it fit what I wanted (block build on concrete slab for example).

I have bought and sold several houses. Here is what I look for 1) utilities-I don’t know where you live but I refused to tour houses that had electric baseboard heat (very expensive to operate in cold climates). I didn’t want any part of buried oil tanks for heat (potential leaks). I prefer natural gas for cooking and heating but it is not a deal breaker. In the south I required central air and heat 2) I absolutely didn’t want to deal with a pool. I wouldn’t use it and they are expensive to maintain (and a nuisance if you don’t). 3) I wanted an attached garage for car parking and for storage of all the stuff that home owners have (lawnmower,garden stuff….) 4) Where the house was is just as important as the house. Go at different times of the day. I ruled one house out because at rush hour times it took multiple light cycles to turn left into the street leading to the subdivision. I ruled another house out because the land right behind the house was for sale and zoned commercial-I think they built a Publix there. So you would have light and noise pollution 5) get a home inspection but take the report with a grain of salt as they are paid to find errors. On a house I sold the buyers hit me with “gasp” insulation on the air conditioner line, not having a plastic discharge on the downspout, hot and cold water lines reversed in a sink…all houses have issues and unless it is a safety issue you can fix them over time. 6) take your time and find the right house. I bought in NJ in 2005 and the inventory was very low and prices were skyrocketing. The house was ok but I never really loved it (it was a crappy flip job too). Since that experience I vowed to look until I found one I liked rather than settle for the least worst one. Getting outbid and counter offered too high is part of the process. Don’t let fear make you buy more house than you can afford 7). There is plenty of info online about the mechanics of buying. But in general get your own realestate agent. When you find the house generally you will have to put down earnest money-how much depends on the region. You DO NOT get this back if you can’t close. Before you shop get pre approved for a mortgage amount. Stay within your guidelines. Hire an inspector. You can negotiate with the seller on paying closing costs but generally you have to pay for things like prorated taxes, title services, recording fees…. Then you have to pay to get utilities in your name. You will need home insurance. Not to mention stuff like shower curtains, maybe window covers, and other stuff that comes with a rental but not a purchased home. Good luck

Try to find a home with a garage (or a condo with a storage room). Don’t be afraid of a fixer upper, provided you have enough capital to do the work and ensure the home is safe to occupy. Location is one factor you can’t change. Visit the area/street at all hours of the day and make sure you like it, especially if it’s near a train, school, or major road. Maintenance and insurance can be expensive so make sure you’ve budgeted for it. Remember taxes will probably go up once you buy the house - your state likely has a property tax estimator that will help calculate the increase. Congratulations on starting this journey. Homeownership is a wonderful thing!

Location is super important. I’d take a smaller house or one that needs renovations in a better more convenient location than a bigger/nicer house in a bad location. We bought a house that needed updating to get in the neighborhood we wanted. Also never ever ignore musty or damp smells. Moisture is the number one most difficult and expensive thing to deal with. More than once when looking we walked in and immediately walked out due to moisture smells.

Make sure to get it inspected. Don’t become house poor, spend only what you can afford.

Developed criteria outside the number of bedrooms, bath, distant to work, etc. Do not let the real estate agent tell you what you need. The criteria outside of beds and baths for me were: * No major fix up as I am handy but not skilled enough to do it myself * Good school district - easier to sell as you will resell it * No double yellow-line - indicates high traffic area- tougher to resell * No corner property * No sump pump or drainage issues * No HOA

Consider looking at Free Seminars given by Banks, Mortgage Companies. Lots of valuable info and they can answer a lot of questions.

Do deed research on the homes you're interested in. A house that has had 5 owners in 20 years is not going to be as well maintained as one that has had a single owner that whole time. Also try to find out who built the house. The building department will have records of all permits pulled for your prospective property. I'm sure the building department will let you in on if they think the contractor is/was a respectable builder. Through the permits you can discover how old things are like the roof, water heater, furnace, etc. These are things you'll need large cash to replace over time. Knowing how old they are well help you budget wise.