3 Things No One Tells You About Buying a House: But you should know.

Last November, my boyfriend and I were lucky enough to buy our first home – even with student loans and an ongoing pandemic.

Even COVID-19 couldn’t lessen the excitement of buying a home, although it contributed to an incredibly sterile process (pun intended). Even though I write about mortgage loans and buying a home, the learning process taught me a lot. For experienced buyers, it may seem obvious, but for my first-time buyers, this one is for you.

1. Be prepared for financial anxiety

Millennials grow up believing they will never be able to afford anything – or at least I have. So I thought my days of buying a house were years away. But after an honest discussion about how much we pay for rent, we realized that buying a home was a much better investment in our money.

[Read: How do you know you’re ready to buy your first home? ]

That said, your mortgage isn’t the only number to consider when deciding to buy. Don’t forget things like closing costs or your down payment.

When the total ‘I can’t afford’ panic set in, we sat down and assessed our finances – not just how much money we had in the bank. We take into account our bills, student loans, and possible monthly mortgage loans in a simple excel spreadsheet. Seeing everything in front of us made it work.

It’s important to compare your financial obligations to how much you earn and how much you could pay if you lost your job.

2. Purchasing power entails a great deal of responsibility

I chose where to study and what to do, but I have never had control over things in my life again. Which of course was very scary, because I had no idea what I was doing.

Our broker was helpful, but in the end, he could only suggest things. In the end, every decision fell on us. Not all choices were complicated – deciding which house to choose was easy. After seeing the prices and comparing who would give us the best terms, we chose our lender. But everything, after a bid was sent, was where things got tough.

You have to decide which inspections you want and which lawyer you want to call upon, even if you have no idea whether you have made the right choice.

You also need to decide how much you want to buy a home, not just how much you can afford. I cannot explain the total shock wave when we were pre-approved for a $ 600,000 mortgage. There was no chance we could afford that price. While a pre-authorization does not guarantee a mortgage, you should not allow such a high number to yield more than your money actually allows.

3. The lessons never end

There is no perfection in buying a home. Repairs will have to be made and budgets re-evaluated. But with an open mind, discomfort can learn. Here are my first three.

Someone may know the word evaluation, but not what it really means

I also bought a house from a friend and it was interesting to see the clear differences between our travels. They had problems with evaluation, which in my opinion at the time was a fairly obvious process. However, his experience made me realize that knowing something does not mean that I have to understand its implications.

Property valuation is requested and coordinated by your loan shark. But if the seller’s accepted offer was $ 300,000 and the valuation of the house was only $ 290,000, the lender only gives you the value of the house.

If you do not have more than $ 10,000 on hand to bridge the gap, you need to reduce the cost to the seller. Luckily everything worked out for my boyfriend, but if it does not work, they lose money when they walk.

Really think about how you want to spend the money

Since coronavirus is still very common, we thought it best to leave cars or murals behind to keep our bubble as small as possible. Not to mention the added benefit of significant savings.

If I could go back, I would pay both, if not both. It was a lot of stress and extra time that could be saved. However, the money saved cannot be ignored. The problem with buying a home is that you need a million things again, especially if you are moving out of an apartment like mine.

Most people do not have the money to buy painters, motorcycles, and everything they need. Think about your priorities. For me, it was painting. If you do not have wall-to-wall colors, you can save later and focus on the engines or needs of your home.

COVID-19 provided an unforgettable experience

In response to the pandemic, creditors have added additional steps to ensure the process works. If you lose your job, you may need to stop the process and re-register later. However, the scale of the pandemic went beyond the acceptance process.

If I see my broker after the pandemic on the street, I will not recognize him. We used masks throughout the process, and even the official closure was done outside in the cold with two pairs of sterile gloves and masks. It was not an exciting event as many describe it. The most exciting part of the end was holding the pin at the end.

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