Hey! Sorry about the delay on the Music Monday-Plumb post. Everytime I write it I get super tired and stop (maybe I shouldn't blog at night so much :) ), so i'm going to post it this up coming Monday. Well, for today's financial friday i'm actually going to share my personal experience on house hunting. I am currently looking for a house. I've started my search a year ago, but financially I wasn't there. This year I am! And I actually started looking again the same month as last year (February). My goal was to find one in February, start the process in March, and be in it by April. Well April is quickly approaching, and so far, I'm still looking. House hunting is so hard. HGTV makes it look so easy, but in reality it's not. I wish house hunting was like buying a pair of shoes, if you don't like them, you can return them. Well you can't return a house, you can sell eventually, but to go through the whole process again would be a little tiring. I do love looking at houses, the layouts, the decor (though in most houses i'm looking at are foreclosed and doesn't have anything in them), picturing furniture in the houses, and how I would live and decorate them. If looking at houses was a hobby, it would fall in like next to sewing, I love it! Buying, however is more than simply looking at houses. Right now i'm at a place where i'm questioning regrets. Will I regret not waiting and buying a house that I like but not 100% sure about it or will I regret not buying a house that was a really great (or potentially great) house. I wish it were easy, like a neon sign flashing or something obvious and grand saying: This is Your house! I suppose though, that's where God gives you a peace about a house and says, this is your house. I would like to think you will know that you know that this is the house you are suppose to have. I have a lot of praying to do.
Here's some first time home buying tips that i'm experiencing or have learning in my home buying journey.
1.) Know your budget. Know how much you can afford and how much you want to afford. Once you know those figures you can start to look for houses in your price range. Also remember to consider utilities into your budget too.
2.) Start saving as soon as possible for two things- 1.) Down Payment. - You ideally want to have 20% of the house price saved up. This way you won't have to pay for PMI (Private Mortgage Insurance) which will save you roughly $30+ (i'm not entirely sure of how much, but some mortgage cost estimates said about that). Also it will be less you're paying in interest and more towards your mortgage. And 2.) Fixing it up/ Appliances and Furniture. - Depending on your price range and houses you look at some won't have appliances, so having a couple thousand saved will help in getting what you need a bit quicker. Also some houses may need work. Most foreclosures will, especially deeper than cosmetically. And most will need new paint, carpet, flooring, etc. And if you find a nice house that's in really nice shape it's good to atleast have some extra money for paint if you want to customize it to your style. And furniture money is good too. Even if you have furniture already, it would be nice to have extra saved up to get more, or to decorate, or whatnot. Also don't forget about small kitchen appliances (microwave, toaster, blender, etc) , outdoor maintenance (lawn mowers, shovels, rakes, etc). There is a lot more cost that goes into a house than the house itself.
3.) Write down and know your wants in a house, needs, and would be nice but not necessary. I have a list of things I want in my house - first floor laundry, decent size back yard, nice area, 2+ beds, 1-1.5 bath, 2 Car garage would be nice but not necessary, etc. Know which one of your wants are ones you don't want to sacrifice and ones you can.
4.) Be prepared when meeting with your mortgage lender. Have all the paper work (mine was 2 months bank statements, last 2 paycheck stubs, and tax info, I imagine it's similar to most lenders) and stay organized with everything. I recommend getting a binder or folder to put everything you need for the lender and houses you find too.
5.) Get a realtor you can trust and get to know them. I love my realtor, she is super helpful and knows what she is doing and is really good at it too. Having a good realtor makes a big difference.
6.) Don't be afraid to walk away from a house or to make an offer on a house. If you think it's the right house, go for it. If it's not or your offer gets rejected, be ok with walking away. There is plenty of houses for sale right now. The right one will come along in the right timing too.
7.) See Potential. Be opened minded when looking at houses. Carpet, flooring, paint, even some walls can be changed. Just because the bathroom is all pink shouldn't detour you from what may be a great house. Just repaint and put a bathtub cover over it. Some "problems" can be easily fixed.
8.) Be realistic. The house you love may have a bad roof or foundation. Know what your limitations are, what you want to afford, and what you can fix or get fixed. It's on to look at houses above your price range because there is a chance they can drop in price, but don't look at only house that you can't afford, same with looking at house.
9.) Don't give up. There is a house out there for you. Just be patient and keep up the search.
10.) Have fun. House hunting is fun, so enjoy every moment of it. Even the not so fun.
So there is my tips. I will probably come up with more, the more I go into this journey. Hope these helped and if you have any questions about house hunting feel free to comment or email. And if I don't know the answer I will look it up.
Thanks for reading!
Night, -Jen
