When we found our home we had no intention of actually buying a home lol. We wanted to see what was out there and what it would cost so we could prepare! The first time we visited the building site for our complex we fell in love! We were months away from our wedding and it was totally insane but God said to move so we moved!!!
Below are 10 things we wish we knew about the home buying process before we got started. We had a lot of unnecessary stress about buying because we were making a ton of assumptions. Especially #1 on this list!
10 Things We Wish We Knew About Buying a Home
- You don’t have to put down 20% – the average for first-time homeowners is less than 6%
- It’s never too early to get pre-approved —knowing exactly what you can afford is very helpful! Tip: you can give them your all-in monthly budget (Principal, interest, insurance, and taxes) to make sure you are not what people call “house poor”
- Have an idea of how much you plan to put down when you get pre-approved. It will help with the numbers
- Know your DTI ratio
- You need more cash than just a down payment
- Application fees (usually refundable)
- Closing cost (you can negotiate this with the seller, our building covered all of this) —typically 2-5%
- Earnest money — typically 1-2% which shows that you are committed
- Inspection cost —an average of $300-$500
- Movers
- Utility setup costs
- HOA fees (we got this covered by the builders as well)
- Once you apply for your loan you can’t swipe a thing! Any purchase over like $50 needs to be explained and can cause delays or even denial of your loan
- They use your FICO score
- They take into account the income you report on your tax returns for 2 years prior —watch those deductions if you lower your taxable income too much it can really hurt you
- You can have them run your loan multiple ways to get the best rates —think one person vs. you and your partner
- You will want to buy everything — don’t rush or go broke filling up a house! We want pieces we love that will last for years to come. It’s hard but so worth it!
Bonus: Look into pest control for new builds before your move in!
The advice I’ve been giving is do your research and ask questions!! My parents had a very different experience buying a home 30 years ago than my friends did 5 years ago. Times have changed so reach out to a few lenders and see where you stand!
What other home buying questions do you have?
XOXO, Laya
So informative for those who are first-time buyers! I wish someone would’ve shared with my husband and I all the expenses that no one talks about when it comes to home ownership! HVAC maintenance, yearly landscaping costs,pest control, termite control and the slew of other item things it takes to upkeep the home. I’m very grateful we bought our home leaving ourselves cushion to grow and not go broke in the process.
Yeeesss it’s soo much people don’t talk about!!! That’s a great post idea too 😉
This is helpful because I am looking to start buying in the next year. I really just want to get out of paying rent and rather pay money towards a mortgage. Thanks for the blog.
So glad you enjoyed it!! I’ll be posting a few more on the process this week but I’m here to help if you have any questions!!! It’s an excited time and so amazing to own!!!
Getting ahead of the game by doing your research, scouting agents, and knowing where you stand – Pre-approval- is all on the top of my list! This was very informative. I’ll surely use this when it comes time for hubby and me to purchase our home.
So excited for you guys!!! Glad you found it useful!!
I loved this! What an easy and informative read. I also appreciate how you don’t give pages worth of “intro material” like most blog posts; you get straight to the point lol. I do have a question though. When you said don’t swipe your card for a thing, are you referring to your debit (straight from checking) or credit card purchases? Thanks again for coming through with the 411!!
Lol I hate those post! You came for a reason so let’s get to the point lol sometimes I’ll want to share my story but not always lol
Both! You DEFINITELY don’t want to use credit (it can change your score) and debit minimum purchases for living. They ask for bank statements and if a lot of activity happens they will need to know why. It’s all about showing you and your spending habits are stable so they can make an informed decision.