For a first-time home buyer, the entire process can feel like being in a paintball battle while on a roller coaster… that swoops through your local bank (and not just the usual ATM part, but that weird office-y section in the back). However, you can avoid that jittery-yet-queasy feeling by knowing what to expect along the way—whether you’re just starting to look at properties or are ready to pull the trigger. From understanding the role of a home inspector to purchasing quality insurance like State Farm®, consider these tips to avoid unexpected surprises and last-minute scrambles.
1. Imagine Yourself Living There, Not Just Visiting
The rapid pace of the modern real estate market can mean you get less time to check out a $400,000 house than you spend trying on a new pair of sneakers. However, a home is a significant purchase, so take your time and consider what it would be like to live there. Brooklyn real estate agent Nick Hovsepian advises, “I always tell my clients to look at the home—but also look at the surroundings. Go on different days, at different times of day. A Tuesday morning, a Saturday afternoon, and a Friday night can all feel very different, and you want to make sure they all fit with your lifestyle.”
Also, be realistic about how certain perks and idiosyncrasies will impact you day in and day out. That community-club room with the design-forward foosball table may look cool, but will you really use it much after the first week? Similarly, a mid-mod house in a trendy neighborhood may seem ideal, but if it has no parking spots, consider the frustration of finding parking every day.
2. Have Your Paperwork Ready
Before you start home shopping, get a pre-approval letter from a mortgage broker. They’ll consider your income, assets, and debt to determine what you can afford to borrow. This letter will be crucial when you make an offer, as it shows sellers you’re financially capable of purchasing their home.
Once you have an accepted offer, the actual mortgage process begins. Expect to provide a significant amount of paperwork, starting with recent tax returns and W2s. Additionally, to get the loan, you’ll need proof of a homeowners insurance policy. A State Farm agent can help you through this process, providing a quote and the necessary proof of policy.
3. Know the Rules
If the home you’re considering is part of a condo association or homeowners association (HOA), factor its fees into your monthly budget and familiarize yourself with its rules and bylaws. “I always tell buyers to consider what’s allowed and not allowed, and what they can live with,” Hovsepian says. Restrictions can include rules about short-term rentals, noise ordinances, pets, the number of cars allowed in the driveway, and even the type of furniture permitted on balconies or the length of your grass.
4. Have It Inspected
Any offer you make should be contingent on a home inspection. Hire a knowledgeable, impartial third-party professional to thoroughly examine the property and provide a detailed report on its condition. The inspector will assess everything from floor joists and ventilation to electrical systems, roof materials, and the state of the crawl space and foundation. This report will also give you an idea of the age of key equipment like the furnace or hot water heater, helping you anticipate replacement costs.
During the inspection, note any features or construction materials that may qualify you for lower insurance premiums. Home-monitoring systems and security features like fire, smoke, and burglar alarms can help reduce costs. In some states, impact-resistant roofing materials can also lead to savings.
5. Protect Your Investment
A home is likely the most expensive purchase you’ll ever make. Naturally, you want to protect it and its contents. Work with a State Farm agent to fine-tune a policy and deductible that suits your needs, situation, and budget. Be prepared to answer thorough questions about the value of your home, its construction, and its entire inventory.
By understanding the home buying process and preparing for each step, you can avoid unexpected surprises and ensure a smoother journey. From imagining yourself living in a potential new home to securing the right insurance, these tips will help you navigate the process with confidence and ultimately find the perfect place to call home.
