After years of building my "Condo" Pinterest board, months of casually looking at places, and visiting around thirteen homes in person, I bought a condo!
Although the process was nowhere near as simple as Ariana Grande's "I see it, I like it, I want it, I got it" lyrics, there are five tips that I feel serve as a good jumping-off point when it comes to house hunting.
1. Start on Zillow.
Years before I was anywhere near ready to buy a home, I browsed spots on sites like Zillow and Redfin. You can enter a location; filter by house price and room counts; and get an idea of what you need, want, and can afford in a home.
The mortgage calculator tool is also incredibly helpful, as it gives you a sense of what payments you will be looking at each month.
2. Find a realtor.
As a buyer, there is no cost to you to work with a realtor. Personally, I would have been lost without the help of Jeanette Pop of Windermere Real Estate. She put together packets outlining the homes we were seeing; considered my preferences; and had the answers to my many, many questions. If you're searching in the Seattle area for a place to settle down, you can find her here.
3. Listen to your instincts.
I visited the condo I bought twice before making an offer. The second time was during an open house, and I had the immediate thought, "Hey, what are these people doing in my home?" The question was completely illogical but nevertheless an indicator that I had found the one.
4. Be aware of finances.
Let's break down a few terms with definitions from Investopedia:
Earnest money: this goes towards your down payment on the home but is paid earlier than the rest of the down payment. Basically, it's used to demonstrate that you're serious about actually buying the house.
Home inspection: the buyer pays for this inspection to be done, which includes a thorough sweep of the property by the home inspector. Any issues that are found, for example lack of an air gap by the kitchen sink, are included in a report that the buyer can request the seller to fix.
Appraisal: a third party appraiser visits the property and assesses the value of the home. If the appraisal comes in low, meaning that the appraiser says the house is worth less than the listing price, there can be issues. Either the buyer and seller must come to an agreement on how to meet in the middle to make up for the difference, another appraiser must be brought in to reassess the home value, or one or both parties may choose to cancel the purchase.
Down payment: this is the money paid at time of purchase by the buyer, typically 5%, 10%, or 20% of the home value. A larger downpayment means lower mortgage payments.
Monthly payments
Mortgage payments: the monthly payment made to the lender to pay off the mortgage. If you aren't paying the entire purchase price of the home upfront, you will likely have a mortgage. Opt for a fixed-rate mortgage so that the monthly payments don't unexpectedly increase later.
HOA fees: some utilities may not be included in this fee, so be cognizant of whether your electricity and internet/cable bills will be separate and how this will factor into your finances.
Homeowners insurance: some lenders may require you to purchase homeowners insurance, which can often be bundled with car insurance for a better rate.
5. Ask questions
Buying a home is a long, complicated process, requiring an understanding of topics you almost certainly don't encounter on a day-to-day basis. It's also a huge purchase, so you shouldn't be hesitant or embarrassed to ask a lot of questions and do extensive Googling.
Don't rush the search, but when you feel that you have found your future home, go for it. It's the right decision.