Jul 06, 2022
Advice for First Time Buyers
PURCHASING YOUR FIRST HOME CAN BE EXCITING, NERVE WRACKING, AND SOMETIMES STRESSFUL.
There is so much to know, so much to do, and so many forms and contracts to read, sign, and submit on strict deadlines.
Over the last few years, the interest rates have been at record lows, which has been great for people who have been able to win an offer — and difficult for first time buyers, who may not have a ton of cash on hand.
My biggest piece of advice I can give to buyers, while the market is this competitive, is:
YOUR FIRST HOME DOES NOT HAVE TO BE YOUR FOREVER HOME.
Trust me, I know that is a hard pill to swallow, because it is a huge financial and emotional investment. And I realize most people think their first home will hopefully be their forever home.
But imagine this: You purchase a home, even with the increase in interest rates, which are still relatively low compared to the rates over time. You may not be in love with everything about the house, but you live there for a few years, and then you buy another one. You have probably built equity in your original home, which means you sell it and turn it over into a new house, maybe even your dream home. Or, now you have the opportunity to own an investment property.
Real estate is a wonderful investment opportunity because it will always be a necessity. Everyone needs shelter and a place to live. But, if managing a rental isn’t something you want to do, you can sell and move to more of a forever home.
This is just something to think about.
Owning a home will give you more independence. You don’t have to worry about your monthly payment increasing (unless you have an adjustable rate mortgage), or worry about your landlord deciding to sell the place and now you have to find somewhere new. And, you can do whatever you want (painting, hanging pictures, landscaping, etc.) and no one can tell you that you can’t do it (except perhaps a homeowner’s association, but more on that later). There are a lot of benefits to owning a home, and like I said, it may not be your ideal first home, but the benefits will make it worth it instead of waiting.
If you ever have any questions, or want to discuss what you should do, I am only a call/text/email away.