There are many things a consumer should expect when they are looking to buy a home and especially their first home. One thing you should expect when buying a home is that you will have to obtain a mortgage for the property. While there are a very few people out there who do not need to obtain a mortgage and can afford to pay cash for their homes, most consumers will need to obtain home loan financing. A mortgage is a loan that uses the house as collateral. Typically many mortgage loans are for 30 years and there are tons of home loan programs that are available to choose from, such as an ARM, a fixed rate, stated income documentation, balloon loan, etc...

You should expect to purchase home owner's insurance that is good for one full year. Most lenders will require a one year's paid receipt before the mortgage can close. The cost of the insurance should be added to what you are expecting to pay in total closing costs. You should check with the insurance company that you have all of your other insurance with. Often times, they will be cheaper because you have so many other policies with them.

Another item that is often overlooked when buying a home is a home inspection. Although is not necessarily mortgage related, a home inspection is well worth the investment. A home inspection is a very in depth analysis of the condition of the home you have selected. It is very different than an appraisal which is just an opinion of value. The home inspection will uncover problems that both the seller and real estate agent may not be aware of or may not have disclosed. It will also give you a bargaining chip to negotiate a lower sales price if the home inspector discovers a needed repair.

One cost most home buyers do not account for is the cost of all the personal touches you will want to add to your new home once you move in. It is not uncommon for people to spend hundreds or even a couple thousand dollars in the first couple of months in a home with basic cosmetic changes. Things like, painting, changing kitchen cabinet hard ware, wall papering, tools, window treatments, rugs, gardening supplies, new bathroom fixtures, etc. can add up fast.

Remember when you are buying a home, especially if this is your first home, you will need to take care of the exterior of your house. This will include the landscaping, your lawn and maintenance, siding on the house, and many other items. If you do not already have a lawn mower you will need to consider buying one. There are general gardening and landscaping tools that will be very helpful in maintaining and creating a lovely yard and exterior appearance.

 

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