One of the most overwhelming things you will do in your adult life is buy your first home. It’s unlike anything you will have encountered. The first time my boyfriend and I got on the phone with our realtor, we spent an hour just learning about the process before we even talked about what kind of home we wanted. But, it was one of the best conversations I’ve had and it taught me a lot about what to expect going forward.
To paraphrase one of his most important take away points: Everyone in the home buying process has something to gain. From the people selling the house and their realtor, to the bank and the real estate lawyer, to your very own representative, everyone is going to profit from this transaction except you. You get the house, of course, but by way of a hefty down payment and the mortgage you’ll be paying back (plus interest) for the duration of your stay in the home.
It’s important to know what is expected of you financially: think bank fees, lawyer fees, and home inspection fees on top of your down payment. It is equally important that you know all of your possible mortgage options and how each will affect you in the long term, not just at this moment in your life.
American Capital Mortgage Group has this awesome infographic that is a great overview of everything you need to know to navigate your first mortgage and the home-buying process.
There’s certainly more to learn about each phase of the home buying cycle, but this is an excellent place to start if you’re thinking about purchasing your first home this year. Now it’s time to start talking to banks and find a realtor that you trust to represent your needs and give you honest feedback about the homes you’re interested in buying.
What was the biggest lesson you learned when you purchased your first home? Let us know in the comments or tweet us @LitDarling!