Hidden Home Buying Tips for a First-Time Home Buyer
Navigating the world of home buying for the first time can be tricky. In this article, we'll pull back the curtain on some hidden home-buying tips that will transform you from a beginner buyer to a pro.
Whether you're puzzling over down payments, scratching your head about closing costs, or wondering if you'll need to sell a kidney to afford homeowners insurance, we've got you covered. Ready to turn that "For Sale" sign into a "Sold" sign with your name on it? Let's dive right in!
Homes carry a lot of stories and history. Just as we're curious about a new friend's background, we often wonder about our house's past. Every scratch and creak holds a secret about the people who lived there before us, especially if it's an old house.
When considering buying a home, it's crucial to research the home's history to avoid potential issues and make an informed decision. Here's an expanded look at the tips for first-time property history check.
Check for clear ownership to ensure no disputes or claims against the property. This involves examining the title deed to confirm that the seller has the legal right to sell the property. A property lawyer needs to be involved to guide you in this step.
It is important to know the past owners, and you can even contact them to get the house's history. Investigate how many times the home has changed hands. This is helpful as frequent ownership changes might signal underlying property problems.
The previous sales history gives you an insight into the price fluctuations. Large, unexplained drops in value could indicate structural problems, market issues, or other hidden concerns.
The market trends help compare the sales history to general market trends. This helps determine if the home has consistently appreciated or lost value over time.
Investigate whether the home has undergone major renovations, such as electrical work, roofing, or plumbing updates. Well-documented repairs can be positive, but repeated major work could signal ongoing issues.
If previous renovations were done illegally, it could result in problems with future insurance claims or resale. If the property is in poor condition or does not meet certain standards, it may affect the loan approval process, including the private mortgage insurance. Lenders generally want to ensure that the property is a sound investment.
Tips for first-time buyers that are overlooked are the past inspection reports. Request any old inspection reports to understand the home's condition over time. This can highlight recurring problems or repairs that may not have been addressed.
It is very important to investigate the home's flood or fire history. First-time homebuyers should examine whether the house has been affected by natural disasters, such as floods or fires, which could affect its structural integrity and insurance costs.
Environmental concerns about the home and the neighborhood need to be investigated. Environmental risks, such as being near a former industrial site, could lead to contamination issues.
Investigate whether any insurance claims have been filed on the property. Repeated home insurance claims for water damage, fire, or other issues could indicate ongoing problems. If a property has a history of certain problems, it might affect your ability to get insurance or increase your premiums.
Researching a home’s history before purchasing is a critical step that can save you from future headaches. By understanding the property's past, including ownership, structural issues, legal concerns, and neighborhood trends, you can make a more confident, well-informed decision when buying a home.
Physical property visits matter a lot, especially during the bad weather. A rainy day visit can expose issues like poor drainage or leaks. The 2024 El Niño rainy season has revealed significant issues with many homes, particularly in previously considered prime real estate areas.
For example, in places like the Athi River, luxurious mansions were surrounded by floodwaters, exposing the vulnerabilities in construction and the suitability of the land for housing. What was once considered stable land turned into virtual swamps during heavy rains,
This highlights how critical it is to thoroughly investigate land and property before purchasing, so when planning your visits, also plan to go on the bad days.
Cell signal strength is an often overlooked factor when buying a new house. A poor signal can cause frustration, especially in today’s connected world, where reliable mobile service is essential for communication, work, and entertainment.
Before committing to a home purchase, it is crucial to check the signal strength in and around the property. Start by visiting the house with your phone and testing the signal in various rooms and outdoor areas. Checking signal strength before buying ensures you won’t be stuck in a beautiful home with unreliable connectivity.
When buying a home, it's easy to get fixated only on the downpayment. The downpayment looks like the grand finale of your home-buying journey, but that's just the warm-up lap. After you’ve emptied your savings for that down payment, a whole lineup of expenses is ready to greet you at the finish line.
Closing costs are one expense you should budget for. Paperwork is expensive, from loan origination fees to appraisals and title insurance included. Another expense is the property taxes that you pay yearly to the government. And while you’re at it, factor in homeowners insurance to protect against everything from fire to floods.
The expense doesn’t stop there. You’ll need to budget for monthly mortgage payments and maintenance costs to make that house Pinterest-worthy.In short, budgeting for a house can be a lot for a first-time buyer. Ensure you plan wisely, and your wallet will thank you.
If you’re a first-time buyer, you may feel like your savings account is stretched to its limit. Looking into down payment assistance programs can help you get unstuck. These programs often can significantly reduce your upfront costs, leaving more cash for decorating that dream living room.
Some programs offer forgivable loans, and others can save thousands off your loan amount, making your first home purchase much less daunting. It’s worth checking out federal housing administration mortgages or even local first-time homebuyer programs to see what you qualify for.
Kenya offers great down payment assistance programs that lower upfront costs. For instance, the Boma Yangu initiative is part of the Kenyan government's Affordable Housing Program, which helps first-time buyers secure homes with reduced down payment requirements. This program makes it easier for low- and middle-income buyers to own homes without having to save for years.
Another option is National Housing Corporation (NHC) loans, which offer long-term mortgages with favorable terms, reducing the loan amount you’ll need upfront. Some private banks also have forgivable loan options or favorable rates for first-time buyers. It’s worth checking with institutions like HF Group or Co-operative Bank to see what assistance they offer under their mortgage schemes.
The Central Bank of Kenya licenses and regulates mortgage lenders in Kenya. When Shopping around for a mortgage lender, you will notice that different banks offer varying interest rates. Finding the right one can save you big money in the long run. Ensure you get the interest rate that suits your budget.
However, it’s not just about finding the lowest interest rate when comparing mortgage lenders. Consider the loan amount, your monthly payment, and any hidden fees. For example, Kenya Commercial Bank (KCB) and Stanbic Bank often offer competitive mortgage deals, but their terms can vary significantly. Don't forget to get mortgage pre-approval from different lenders to strengthen your bargaining power when making an offer on a property.
By exploring down payment assistance programs and comparing mortgage offers from multiple banks, you can navigate the Kenyan housing market more confidently and save on hidden costs.
As a first-time homebuyer, knowing some hidden tips keeps your journey smooth and your wallet happy. As mentioned, don’t just focus on the down payment. Sure, it’s important, but you’ll also face closing costs, property taxes, homeowners insurance, and private mortgage insurance. Factoring these into your budget before making an offer is a good step in financial planning.
You do not need to save money for eternity to get a home. Check out down payment assistance programs. These programs can lower your initial outlay, so ask your mortgage lender or check with the Federal Housing Administration for options.
When house hunting, shop around for mortgage preapproval from multiple lenders. It helps you lock in the best interest rates and monthly mortgage payments. Also, find a good real estate agent who’ll guide you through the home inspection, negotiate the purchase price, and ensure the seller pays for any hidden repairs.
Remember to check your credit report and score before applying for a home loan—they impact your loan amount and terms. Also, always budget for maintenance costs and an emergency fund to avoid surprises down the road. These tips and professional team will help you prepare well for your dream home, which will be less stressful and more rewarding.
Costs include the down payment, closing costs, homeowners insurance, property taxes, private mortgage insurance (PMI), and maintenance costs. Title insurance, home insurance, and monthly mortgage payments are also part of the house payment.
Compare mortgage lenders based on the interest rate, monthly mortgage payment, and payment assistance programs, such as down payment programs for first-time buyers.
Start with house hunting, working with a good real estate agent, a home inspection, and calculating how much house you can afford. Factor in property tax, homeowners association (HOA) fees, and having an emergency fund.
First-time homebuyer programs like Federal Housing Administration (FHA) loans and down payment assistance programs can help. A good real estate agent can guide you through these and the entire process.
Yuko, E. (2024, August 30). How do I research the history of my home?. Architectural Digest. https://www.architecturaldigest.com/story/property-history-how-to-look-up-the-history-of-your-home
By: Emily Potter and Priya Chhaya Have a story idea that might be interesting and engaging for a national audience? Read our Contributor Guidelines and email us at editorial@savingplaces.org. More posts by gue. (2022, February 22). 10 Ways To Research Your Home’s history: National Trust for Historic Preservation. 10 Ways to Research Your Home’s History | National Trust for Historic Preservation. https://savingplaces.org/stories/preservation-tips-toolshomep-10-ways-research-homes-history
Porch.com. (2018, November 8). Is your cell signal strong enough? how to check before you buy that New House. Porch. https://porch.com/advice/cell-signal-strong-enough-check-buy-new-house
Miranda Grace. (2024, April 10). Down payment assistance programs and grants: What they are and how they work. Rocket Mortgage. https://www.rocketmortgage.com/learn/down-payment-assistance
