, you may hear of the responsibilities of home ownership, but you may not know how they specifically affect your situation. Understanding the impact of your new investment is the key to smoothing out the transition from being a renter, to a homeowner.Closing Costs
- Forget the infomercials you hear on late-night television advertising
: "No money down" and "No closing cost" real estate deals. Most home purchases require closing costs, even when the required downpayment is minimal. Talk to your mortgage lender about fees associated with closing. If you've detailed costs in advance, you can be prepared at the closing table, and may be able to negotiate the removal of certain fees. Always ask which fees are fixed, and which are negotiable, before paying closing costs.
Responsibility
- When renting a house or apartment, it's easy to overlook the true costs of owning property. You're responsible for maintaining every inch of your new place. If you have an active homeowners' association (HOA) in your neighborhood, this could also mean you're expected to perform diligent lawn maintenance, and other tasks, to maintain your property. Failure to comply with HOA rules usually results in fines. Be prepared to spend time each season keeping up your home, to avoid expensive maintenance.
Increased Bills
- Get ready for an increase in household bills, if the home you're purchasing is larger than your last home. Many renters live in properties that include utilities and homeowners' association fees in the rent. In your own home, you're solely responsible for each expense connected to your new residence. Review costs in advance to prepare yourself for what you'll spend each month, versus what you currently pay in bills. Practice saving the difference, to get an idea of how the new bills will impact your lifestyle.
The Dream House
- Just because a home looks beautiful in a newspaper ad, and in your first walk-through, it doesn't mean you should put it under contract. Visit the home more than once to be sure you feel comfortable committing to a 30-year mortgage. You may find things about the home you didn't notice on the first visit, because you were too excited about the prospect of owning a new home.
Slow Closing
- A 30-day closing is not always guaranteed. Often, due to the inefficiency of the home owner, loan underwriter, or both, your closing date gets continuously pushed back. Always respond to the underwriter's request for information in a timely manner. Though you cannot predict how fast he or she will process your loan, you'll ensure you're not the cause of any delay in moving into your new home.
Read more: http://www.ehow.com/info_7749096_expect-buying-first-house.html#ixzz2XFb3RDtw
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