We asked homeowners to share what they wish they’d known before buying their first home. Hear what they have to say about unexpected costs, managing spending and setting aside money for repairs.
We brought this red chair around Connecticut and asked people, what do you wish you'd known before buying your first home?
Yeah, I think the first couple of times I bought a house, I was surprised at how many ancillary costs there are that drive up the price-- taxes and fees.
I did my research about a year prior. And I learned about interest rates and different options, whether it's FHA or conventional loans, and how to save up, what my credit score is, what your credit score should be if you're looking for a low interest loan. And I found out about different housing programs in the area.
To estimate how much house you can afford, your monthly mortgage payment should be less than 28% of your gross monthly income.
Have a really intense home inspection done, because things can be hidden that a normal inspector would not really dive into. Or have a GC come and check things out.
That’s Great advice!
Budget. Cut your spending with certain things. Eliminate certain things until you go through that process and close and are in your home.
Try to avoid big purchases that might impact your credit (like a new car) while you’re waiting to close on your new home.
I'd tell them they should have a margin of safety on their cash budget, because there's always something you have to repair or replace or fix-- both when you're going out, somebody always wants something fixed, or when you're coming in, there's always something you want to do when you get there.
You should save at least 1-2% of your home’s value per year for upgrades and regular maintenance.
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