Three things every first-time homebuyer should know

Although buying a home is one of the most exciting events in a person’s life, it can also be one of the most stressful. This is particularly true for first-time homebuyers who have never gone through the process before. Here are three things to know if you are in the process of looking for your first piece of real estate:

Just because you got pre-approved for $400,000 doesn’t mean you have to spend it: People with good credit and a decent income are often approved for surprisingly large mortgages. But remember, that doesn’t mean you have to (or should) spend it all. Find out what the monthly payments will be (don’t forget property taxes, home insurance and life insurance). If the number seems high, look for houses that are a little cheaper. You don’t want to buy a beautiful home and end up so financially strapped that you can’t afford furniture or groceries.

It is important to consider all the expenses associated with buying a home: No matter what type of home you decide to buy, the associated costs will likely be in the thousands once all is said and done. Please do your best to estimate these costs prior to bidding. Having this money set aside will definitely make the process less stressful. Consider things like attorney fees, home inspections, moving costs, and any time you may have to take time off work. As you’ll discover, these expenses add up quickly.

No manufactured home will be perfect: It’s something no homebuyer wants to hear, but sadly it’s true. Unless you have unlimited funds to build your dream home, chances are good that no home is absolutely perfect. You may love everything about a bungalow except its rural location, or you may think the only thing wrong with a condo is its closet-sized master bedroom. Make a short list of characteristics that you refuse to accept, and then try to keep an open mind about everything else. Otherwise, you may be shopping for a long time.

Homeownership is the American dream. But unless you’re prepared for the stress of house hunting, it can be easy to get discouraged. So the more prepared you are, the easier the process will be. But be prepared when things don’t go according to plan, and be prepared with plan B.