Avoiding Buyer’s Remorse For First Time Home Buyers
Heritage Home Loans
Heritage Home Loans Spokane, WA
Published on April 28, 2017

Avoiding Buyer’s Remorse For First Time Home Buyers

First Time Home Buyers Can Avoid Buyers Remorse With These 5 Strategies

Buying your first home is extremely exciting.  It can also be extremely overwhelming. The majority of first time home buyers will make a 30-year commitment in the form of a mortgage in order to pay for the home they purchase. Finding a home that will meet all of your needs while staying in your budget for the purchase can be a challenge.

After the dust settles, and the newness wears off, will you still love and be able to afford the home?

Follow these five tips to avoid home buyer’s remorse.

Get to Know Your Budget

When you buy a new home, you will take on the huge responsibility of having to make 360 monthly payments. If you use a 15-year mortgage you will have 180. It is important that the monthly mortgage payment doesn’t hinder your ability to do the other things you like to do.

If you don’t currently have a monthly budget set up track every expense for a few weeks to see where you are spending your money. You may be surprised and will most definitely find some waste. I know we did when we created our monthly budget.

My two favorite blogs on budget creation are brokemillennial.com and financialbestlife.com. They both have great information on budget strategies.

 

Get to Know the Neighborhood

When you buy a home, you are fully committing to that neighborhood. While in Spokane everything seems to be 20 minutes away, you probably aren’t going to leave the neighborhood to do most of your weekly tasks.

What the new home shouldn’t do is make your life more difficult by creating longer commutes to work or the gym (If you even lift bro! J )

Items to Pay Attention To

  • How long is your commute to work?
  • Do you like the restaurants and shopping?
  • How are the schools? (If you have littles)
  • Does it have the people, places or things you need daily or weekly for fun?

 

Get Pre-Approved

A couple of important things happen when you get pre-approved.

First, you have the comfort in knowing you will be able to buy a home and about how much money you will need to do so. This will allow you to set up your budget for the costs to buy the home and make comfortable monthly payments.

Secondly, if you get pre-approved in advance of starting your home search you may be able to improve your status with the lender. In many cases, a few minor credit fixes or a couple of months of saving can improve your rate or monthly payment.

CLICK HERE TO GET PRE-APPROVED

Create Your Dream Home (On Paper)

If you are thinking of buying a home, you are probably watching a lot of HGTV or spending your free time searching the Zillow app for homes.  As you do this start making a list of what your dream home would look like and have as amenities.

Here is a list of items to think about.

  • Number of bedrooms
  • Garage/ Parking
  • Outdoor Spaces
  • Living Spaces
  • Bathrooms
  • Kitchen
  • Heating/ Air Conditioning

Once you have created that list you will want to put all of those items into categories. I recommend having these three categories.

  • Must Have – You are not buying the house without these items.
  • Would Like to have – These items would be amazing but you can live without them or add them to the home later.
  • Can live without – If the house has a lot of the other items on the list you would be ok buying the house without these items.

Once you have finished your lists, discuss them with your Realtor. You will want to find out what is realistic in your price range.

Fake It Til You Make It

One way to build up your savings for a down payment would be to live as if you had to make your full mortgage payment each month. If it is more than what you are currently paying in rent, put the leftover funds into savings. Doing this will allow you to make sure the monthly payment will be affordable for you. Remember there may be a few extra expenses when you own a home that you don’t have as a renter.

HAVE QUESTIONS ABOUT HOMEBUYING? – TALK TO TONY

Heritage Home Loans
Heritage Home Loans Spokane, WA
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(509) 991-3493