A few tips for first time home buyers

A few tips for first time home buyers

| Jul 10, 2020 | Real Estate Litigation |

For most first-time home buyers, the purchase of a family home represents the largest single financial transaction in their life to date. Despite this, some buyers move through the process quickly without proper preparation. This can understandably lead to issues in the buying process or later down the road creating more headaches and requiring more time and effort than would have been necessary if some important tips were considered up front.

First, there a number of things to keep in mind during the initial home search. Particularly for first time home buyers, having some professional guidance can be a huge help in navigating the sometimes expansive amount of listings to narrow down properties with the desired elements. From there, visiting potential new homes not once, but numerous times, can be very helpful in crafting reasonable expectations about its efficacy and potential problems, but also it’s possibilities. Having a good sense of the types of homes out there will help when it comes to making a final decision on an offer.

Second, there are important things to consider on the financial side. For most, financing will be the best way to afford a home. Lenders may offer a few different options for loans, which will include things like origination fees, different term lengths, and payment points. Taking the time to understand not just the initial impact – that is, what it costs upfront – but also the long term costs, particularly with the going interest rates, is vital to having more secure long-term financial footing. Also, there are cases where a lender may offer a higher value loan that could help purchase a more expensive home, but the buyer should be aware of how the monthly payment could stretch their ongoing budget.

Finally, once under contract, a key step in the buying process is the inspection. While not required, inspections can be vital because they may help uncover unknown issues with a home that aren’t quite visible with an untrained eye. For example, faulty outlets or wiring, foundation problems, plumbing issues and more could be found by an inspector well after the potential buyers made their initial decision to buy the house. In some cases, repairs for these issues can run in the thousands or tens of thousands of dollars – an amount that could very well mean walking away from any deal to buy the house.

Buying a home is a major life decision with significant financial repercussions, and while everyone hopes for a smooth transaction, sometimes there are issues. If legal issues arise at any point in the real estate purchasing process, working with experienced counsel can help buyers identify the best path forward and protect their interests during these important transactions.