Buying your first home is one of life’s biggest milestones. It is exciting and scary all at the same time. As it is an unknown territory, there are some things to know before diving right in.

1. Make sure you do your research on the homes in the area. Knowing the selling prices of homes that are comparable to each either will give you a good head start. Also familiarizing yourself with the local MLS is a good idea. A real estate agent can also pull this info directly from the MLS and they know all the right search options to check.

2. Establish what you can afford. This will keep you from getting attached to your dream home that is double your price range. Looking at what is out there can be fun, but at the end of the day, being sensible is most important. It has been suggested that buyers shouldn’t spend any more than 28% of their income on housing expenses.

3. Calculate your total housing costs for the month. This includes taxes and insurance in addition to your mortgage payment. You can get a good idea by calling your insurance agent. If you provide them with the area that you want to live in, they can give you an accurate estimate.

4. Don’t forget about closing costs. These include settlement and title fees, taxes, prepaid homeowners association fees, insurance, etc. If you have questions of what you might run into, be sure to ask your real estate agent.

6. Make sure you find a quality real estate agent who is honest and reputable and ask them about the local market. They can inform you of accurate real estate trends, whether prices are expected to drop, or rise.

7. Be sure to know the responsibility of being a homeowner. There are factors that can pop up unexpectedly like a roof repair, an appliance replacement or a plumbing issue. Typically the inspection report gives a potential buyer a good heads up of what is to be expected, but as anyone knows, “life happens”.

Buying a house is a fabulous investment and a great way to establish or maintain wealth. Knowing all the facts and little details will save you head aches down the road. If you have any questions or concerns, contact Peter Delilli at 530-308-4331.