So my lease for my apartment is up toward the end of this year, and now that I can work remote, I’m thinking of moving somewhere less expensive and finally buying a home. Can anyone with experience give me advice on the process or resources I can use? Not only am I a total noob, but I don’t talk to my family and my friends aren’t homeowners either, so I’m not sure where to start. Googling presents me with so much info that I’m a bit overwhelmed.
What country are you in? It might matter.
Assuming you are in the US, the process is lengthy and there’s a lot of hurry up and wait, but it’s not too bad.
Edit, addendum: hire your own lawyer to review the contracts. This will cost about $1,000. If you don’t already have a lawyer you can contact your state bar association to find one that is relevant to your needs. Don’t buy a home as co-owner with a person to whom you are not married. If you must, you will need your lawyer again to draft up a full partnership agreement that describes how to divide the asset in the event of death, disinterest, disability, disloyalty, etc. You don’t want to be half owner of a house with your deceased girlfriend’s parents who want to sell it out from under you. Pick a number as your budget and stick to it. The temptation to get a house that is a little bit nicer will always be there. This is how stupid decisions are made.
This is a great overview. I’d like to stress how impactful and important your real estate agent can be. Finding the right one can make the process way less confusing and stressful. There are a lot of new terms and processes that you’re going to quickly learn about, and you want to be sure you have someone on your team to make that as smooth as possible, especially since not having all your ducks in a row can cost you a lot of money or have you lose out on getting an offer accepted. I’ve personally had good success with very experienced independent realtors that assist with sales and purchases of all types of residential properties from shacks to multi million dollar mansions.
As someone who’s been through this 3 times, this all correct but I’ll add a few caveats:
Buying a home can be a daunting, overwhelming, and frustrating experience, especially if you’re looking at a quick closing timeframe. Just remember: your real estate agent is there to help you every step of the way and it’s in their best interest to have your best interest at heart. Rely on them and their guidance and it’ll make the whole experience less stressful.
Just FYI, OP: The fee for the PMI is usually based on the difference between 20% and what you put down. I wanted to save some money upfront for some upgrades, so the bank recalculated my fees with 15% vs 20% down. The PMI on a 15% down payment came out to $8/month for the first 12 months and dropped off after that.
That saved me a few thousand upfront which I was able to use to pay for my landscaping and some other projects.
Also, don’t be afraid to ask stupid questions to your mortgage broker :) They’re usually very helpful, and mine actually suggested that tip to me. It was also less than the extra interest I would have incurred if I’d increased the amount of my loan by that much.
Ahhh, that makes sense. I haven’t had to deal with PMI since I bought my first house in 2009, and all I could remember was something about 20% down. Thanks for clarification!
Oh my god, thank you so much. I admit that’s all a little overwhelming, but goodness I appreciate you taking the time to write that up.
it may seem overwhelming, but if you find a good real estate agent they will help a lot
I thought the home buying process was rather easy, anything important I needed to sign was digitally sent to me by my realtor and they also helped coordinate inspections, etc.