EL SEGUNDO HERALD July 26, 2018 Page 11
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5 Home-Buying Tips For First-Timers And Old-Timers
(BPT) - Whether you are buying a home
for the first time or you are just looking
for an upgrade, it is never a bad idea to
arm yourself with tips that can make your
search go from overwhelming to
enjoyable. Rather than learning the
hard way about hidden expenses
and difficult neighbors, there are
things you can do to feel more
confident as you begin your search.
With a seller’s market in many
parts of the country, these tips are
even more important as you battle
other buyers for the home of your
dreams. The more efficient and
straightforward you are in your
search, the better chance you’ll
have to hear “offer accepted.”
When starting the home-buying
journey, the first thing to consider
is the cost and expenses. When
pre-approved for a mortgage of
a certain amount, keep in mind
that number is not a target - it
is a maximum. While a seller’s
market often means little wiggle
room on price, your best bet is to
find a property below that number
so you have a financial cushion
when negotiations happen.
It is important to remember
the mortgage is not the total cost
of your home. It usually only
covers principal, interest, property
taxes and homeowner’s insurance
premiums. Homeownership
involves many other expenses like
closing costs, home repairs and
potential yearly increases in property taxes.
Last, and something few people think about,
if you have a life insurance policy, be sure to
review it to make sure your coverage takes
into account the mortgage debt on your new
home. This ensures that if something happens
to you, your family is financially secure.
Finding the right home requires a delicate
balance of flexibility and finesse. At the same
time, you want to stand firm when it comes
to your non-negotiables in your new home
(price, school district, a second bathroom).
This is where having a real estate agent
can be of enormous benefit. Agents have the
expertise and time to devote to your search
that allows you to flex when opportunity
arises and get a home that doesn’t break your
budget. Finding the right agent is a lot like
finding the right home - you need to do your
research. Get referrals for accredited agents
and have meetings with two or three of them
before deciding who to hire. Make sure they
have experience working with homes in your
price point and are familiar with the areas
you are looking to buy in. Lastly, do not
sign an exclusive broker agreement unless
you are certain you have found the right
agent for you. There are many
resources available to help you
find an agent that understands
your individual needs, such as
USAA’s Real Estate Rewards
Network.
While location is important,
many factors feed into a great
neighborhood. From disputes over
pets and parking to personality
clashes, neighbors can have a big
impact on your happiness as a
homeowner. Before committing to
a neighborhood, take time to walk
the street and gauge compatibility
with the neighbors you meet.
Construction projects often take
longer than anticipated and can
reveal other problems that end
up costing more money. If your
home is a complete renovation
you also won’t be able to live
there during construction, so you
need to ask yourself, can you
afford to pay for two homes for
several months?
Similarly, a larger house means
more time and money spent on
upkeep. A house with a big yard
may have great curb appeal but
will you truly use all that space?
Be realistic, because the money for
maintenance on a bigger house is
money in your pocket at a smaller
house that has many of the features you want.
To learn more tips and tricks to buying
a home or to find a trusted agent near you,
visit USAA’s Home Learning Center.