Several years ago, I had a job as a Realtor. It's not the easiest job to have, let me tell you! You are on call 365 days a year/ 24 hours a day. I know many people think they make a lot of money. Some do, many don't make very much. There were a lot of phone calls, showings, open houses, etc. that you don't really get paid to do. Realtor's don't get paid until closing day. That being said, I learned a lot!
I do have some tips to share with you. I have nothing to gain financially by sharing this. These are things I would tell my clients that were house hunting here in Louisiana. Your state may be different, so check with a local Realtor.
1- When getting pre-approved, I personally would only include the highest income in the family. Why? Think of the future. One of you could lose your job, you could have a baby and maybe mom wants to stay home. If you based your income on both of you and bought a home at that price range, it would cause some financial hardship!
Yes, I know that would mean a smaller, less expensive home, but very few people really need a huge home. Unless you have MANY children or a multi - generational household!
2-Get estimates on house insurance, and property taxes on the house that you are interested in. Insurance goes up pretty often, and property taxes are reassessed every four years. That means you pay more every month! If you are maxed out on your mortgage payments because you bought the high end of what the bank said you could, you may be in trouble...
3-Really think about your lifestyle...
- Do you want to have time to enjoy your life, or do you want to be stuck with a large mortgage?
-If you like to take vacations, have medical issues, children in extracurricular activities, etc. you may want to consider a smaller mortgage. ( You never know what life will throw at you, so you need to have a safety net..)
-Can you manage with a smaller, less expensive house?
- Do you REALLY need a 3000 square foot home? You do realize that you have to clean it too! (Or pay a housekeeper to do it - which adds to the monthly bill...)
4-If you are a buyer, you should have a Realtor. It doesn't cost you anything, because the seller usually pays their commission. They are there to support you and look after your interest. They know things you may not have even thought about!
5-Home inspections - Some banks require a termite inspection, but not a home inspection. They are well worth the costs. You don't want any surprises after you've spent all of your money buying your home! If you can get a home warranty for a year or two until you get some money saved again, take advantage of that. I have had clients that had the air conditioner go out within weeks of buying their new home. The home inspector checked it out and it was fine at the time, but they can't predict the future!
These are some of my most important tips - I'm sure I will think of more after this post. Feel free to ask questions or share any tips of your own!
I hope they help you!!!
