Buying a home in California is one of the biggest purchases we will most likely make in our lifetime.
There was a good article recently from Pacific Union about homebuying (see link below).
This experience is a major investment in time, money, and emotions. The process can definitely be intimidating for first time home buyers, particularly.
And the anxiety doesn’t end when the papers are signed. There are worries that plague every homeowner even after the keys have been delivered. Here are some helpful tips to benefit new homeowners in today’s market:
1. Being “House Poor”:
This is a situation where the person is paying a large amount of their total income just to maintain the roof over their head. These people have little discretionary income and might even find it difficult to cover other financial obligations. Knowing what your budget can afford before beginning your house hunt will prevent you from falling into this trap.
2. Not Understanding Escrow, Mortgage, and Taxes:
Real estate terms and procedures can be very confusing for the uninitiated. Having your agent and/or broker explain terms and processes in laymen’s terms is critical if you are to feel confident making this major decision.
3. Unexpected Expensive Home Projects:
No one expects to be buying a “money pit”, but if a home inspection does not reveal a potential problem, the buyer needs to be prepared to pay for the repairs. For this reason it is mandatory to review disclosures and pest reports so you can plan.
4. New Neighborhood and Neighbors:
Do your homework before you move in. Take a few tests runs at various times of