Nov. 22, 2014
Buying a home is uncharted territory for many of us. Both Matt and Andrew have done it and will tell us what to expect before, during, and after you buy a home.
Your mortgage payment shouldn’t be more than 30% of your take home salary. Don’t buy a home with a person you are not married to. Property is hard enough to untangle when you have some legal protections, it’s much worse when you don’t.
The bank wants to see more than your down payment liquid in your checking account. They want a buffer. If you’re putting 20% down, you need more than 20% in your account.
You will be paying property tax. You will need home owner’s insurance. You will have closing costs unless you negotiate for the seller to pay that. You may need an appraisal and an inspection.
Being very optimistic, this process will take at least thirty days. You will fax a rain forest worth of paper. This will be the most paper work intensive under taking of your life.
You will negotiate. Don’t let yourself fall so in love with a place that it clouds your ability to negotiate. When you’re spending hundreds of thousands of dollars, $5000 doesn’t seem like much, but it is.
You will have to pay moving costs. You will have to pay utilities you didn’t even know were a thing like water and sewage. You might need to renovate. You might find a nasty surprise once you start renovating, mold, foundation cracks. It all means more money than what you had planned on.
Buying a house is a hassle and it may or may not be worth it. Consider it carefully. A home is not the guaranteed investment it once was.
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