Our experts answer readers' home-buying questions and write unbiased product reviews (here's how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
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- I learned first-hand that the home-buying process is not as simple as it seems.
- In retrospect, I wish I had asked more questions about the mortgage process, homeowners insurance, and more.
- I also didn't anticipate how many other expenses there would be after moving in.
Buying a home is a significant life goal for many people. But it is a huge process with many steps to figure out. After finishing graduate school and working for about four years, I decided I was ready to buy a home. I had money saved for a down payment, checked my credit score, and got a recommendation for a realtor from a friend. Seems like it should have been straightforward, right? Well, it wasn't.
It took six months to get it all done and finally move into my new home. There are definitely things I wish I had known earlier in the process, and I certainly would have done things a bit differently if I had known these things in advance.
Here are five things I wish I knew before buying my home:
1. You don't have to buy as much as you prequalify for
Basic prequalification is typically 3 times your income and for me, that turned out to be a high number for a potential mortgage. If I had purchased a home for that amount, it would have been quite a large monthly mortgage payment. Before I even started looking for a home, I determined what I could actually afford based on what I could comfortably pay each month.
2. Budget and plan ahead for a wide range of costs
After I bought my home, it seemed like I was spending money everyday for about three months just to get settled in. Yes, I had money for the down payment and closing costs, but there were also movers, bathroom and kitchen supplies, light bulbs, lamp shades, and much, much more.
I would advise anyone planning on buying a home to also have money saved for when you finally move in. There will be immediate costs just to transition to the new space.
3. Inspections matter, a lot
Never waive the inspection. In a hot housing market, sometimes a buyer will waive the inspection to edge out the competition. I am so glad I did not do that. The home inspection revealed an issue with the smoke detector and the sprinkler system. In the event of a fire, the sprinkler system would not have worked!
Inspections protect you before you sign on the dotted line by exposing potential problems that can cost you a lot of money down the road.
4. Anticipate the ongoing maintenance costs
This one got me. I could not have imagined how much maintenance and upkeep on a home would cost. From higher utility bills to lawn care, it all adds up and it keeps adding up. This is a part of homeownership that is not discussed enough. Maintenance and upkeep of a home can be an expensive and never-ending task. This is why you must consider the total cost of owning a home, not just the mortgage payment.
5. Ask any and all questions
It seemed like as soon as I decided to buy a home, I was running this gauntlet toward the closing. It doesn't have to be that way. I wished I had asked more questions before getting started, such as why are property taxes so high, how much it would cost to cut down a tree, whether I should shop around for the best homeowners insurance rates, and many more.
There is definitely more to buying a home than the down payment and your credit score. It's better to ask any questions that come to mind instead of not understanding any aspect of a process that at the end of, you are responsible for hundreds of thousands of dollars.