For a first-time home buyer, the entire process can feel like being in a paintball battle while on a roller coaster. . .that swoops through your local bank (and not just the usual ATM part, but that weird office-y section in the back). But you can avoid that whole jittery-yet-queasy feeling by simply knowing what to expect along the way—whether you’re just starting to look at properties or are ready to actually pull the trigger. From sussing out the vibe of an HOA to knowing the role of a home inspector to purchasing quality insurance like State Farm®, consider these tips to avoid unexpected surprises and last-minute scrambles.
1. Imagine Yourself Living There, Not Just Visiting
The rapid pace of the modern real estate market can mean that you get less time to check out a $400,000 house than you spend trying on a new pair of sneakers. But a home is (obviously) a very large purchase, so do your best to take your time and consider what it would be like to live there, says Brooklyn real estate agent Nick Hovsepian. “I always tell my clients to look at the home—but also look at the surroundings,” he explains. “Go on different days, at different times of day. A Tuesday morning, a Saturday afternoon, and a Friday night can all feel very different, and you want to make sure they all fit with your lifestyle.”
You should also be realistic about how certain perks and idiosyncrasies would impact you day in and day out. That community-club room with the design-forward foosball table sure looks cool. . .but will you really play much after the first week? That mid-mod house is in such a cool neighborhood. . .but it has exactly zero parking spots. (Picture yourself arriving home after a long drive and having to circle the neighborhood for 45 minutes just to find one.)
2. Have Your Paperwork Ready
Before you start home shopping, get a pre-approval letter from a mortgage broker: They’ll consider your income, assets, and debt to determine what you can afford to borrow. This letter will come in handy whenever you make an offer on a place—it lets sellers know youÆre good for the expense.
After you have an accepted offer, you’ll initiate the actual mortgage process. And, spoiler alert, when you’re borrowing a few hundred thousand dollars or so, you’re gonna need to pony up some paperwork—starting (but definitely not ending) with recent tax returns and/or W2s. Also, “in order to get the loan,” Hovsepian adds, “you need to have proof of a homeowners insurance policy.” A State Farm agent can walk you through the process, give you a quote, and provide the proof of policy you’ll require.
3. Know the Rules
If the place you’re considering is part of a condo association or homeowners association (HOA), remember to factor its fees into your monthly budget. You should also familiarize yourself with its rules and bylaws. “I always tell buyers to consider what’s allowed and not allowed, and what they can live with,” Hovsepian says. “Buildings and communities can have restrictions that generally do not change.” Some of these might be about short-term rentals and noise ordinances, but others can be about pets, how many cars can be in the driveway, and even the appearance of outdoor spaces—down to the type of furniture youÆre allowed to have on your balcony or the length your grass must be cut to.
4. Have It Inspected
Any offer you make should be contingent on the home inspection: You hire a knowledgeable, impartial third-party professional (so, not the seller’s dad) who will thoroughly examine the property and draw up a report about its condition. Just as you’ve scrutinized the flow and vibes of the place, the inspector will scrutinize the floor joists and ventilation, whether the electrical system was installed to code, what material the roof and siding are made of, and the state of the crawl space and foundation. And that list just scratches the surface! The resulting report will also likely give you a sense of the age of key equipment like the furnace or the hot-water heater, so you can consider the remaining lifespan and how much they might cost to replace.
During the inspection, make note of any features or construction materials that may qualify you for lower insurance premiums: For instance, home-monitoring systems and security features like fire, smoke, and burglar alarms could help lower costs. In some states, impact-resistant roofing materials can also help you save
5. Protect Your Investment
A home is likely the most expensive thing youÆll ever buy (unless your last name is Moneybags). Of course you want to protect it, as well as its contents. You can work with an agent at State Farm to fine-tune a policy and deductible that suits your needs, situation, and budget. Be prepared for very thorough questions about the value of your home, its construction, and its entire inventory.
Ready to start your home-buying journey? State Farm can help.
