Buying a home is an overwhelming venture at any stage of life – but buying a home for the first time is especially daunting. Most homebuyers know that they need to take their time in choosing a home, accrue some savings to cover out-of-pocket expenses such as closing costs, inspection fees and a down payment, and monitor their credit score and make a significant effort to build it up, but there are still several components to consider in the process. Trust us, bearing in mind all aspects of a new home will help save money in the long run. Check out our favorite tips for how to avoid first-time homebuyer mistakes.
Draining Your Savings is
Life is unpredictable, and that’s why emergency savings exist! Cars break down, appliances hiccup and family members and animals get sick. Don’t drain your savings account for the down payment or other out-of-pocket expenses. Save up a down payment in addition to an emergency savings fund. A good rule of thumb is that a cushioned emergency savings fund can cover six to eight months’ worth of expenses.
Getting Just One Rate Quote
Look at house hunting as you would car shopping or researching any other high-priced item. Home prices are only so flexible when you find the perfect home, but interest rates vary lender to lender, and many lenders offer special incentives such as closing cost expenses.
Read the Fine Print
Lengthy contracts can be confusing, even if legalese is something you are used to working with! Even if you feel rushed in reading through everything that needs to be signed – Take. Your. Time. The contract includes essential everything related to the home such as included appliances (if any), warranty information and remaining costs due, etc.
New Home = New Furniture?
It’s certainly tempting that your first mortgage payment isn’t due until one month after the last day of the month you close in, and it’s natural to want to fill a new space with new furniture and appliances that fit it best (let’s be honest, that couch you’ve hauled to your last three apartments has seen better days), but hold off on making pricey purchases until the fluctuation of money slows down. Instead, upgrade furniture, appliances and spaces incrementally, one at a time so the expense doesn’t seem so hefty and hit all at once.
These are just some of our favorite first-time homebuyer tips. When it comes to buying a new home, there are innumerable factors to consider, and the Spring House at Honey Farms team is here to help in any way! This collection of new townhomes is perfect for first-time homebuyers with plenty of floor plan options, included features, energy-efficient construction and a low-maintenance lifestyle.
To learn more about living the sweet life, visit www.HoneyFarmsLiving.com.