Buying Your First Home -- Things to Consider

Though I purchased my house a few years ago, I wanted to start off the blog with some things to think about as you are looking for your first home.

Price: figure out what you can afford. You need to consider what you have to put as a down payment, what you are comfortable with as a monthly payment, and consider the cost of utilities in your calculation (phone, internet, cable, electric, gas, etc). You don't want to purchase a house that will overextend you. While you may have the option to get a roommate or may have a boyfriend/girlfriend living with you to help out, try to keep in mind that this scenario could change and you will be by yourself. While it's pretty standard that most people will end up paying a little more for the house than they bargained for, don't go nuts. You need to be able to afford it on your own income, and then if you have a supplement, you can bank it or save it for repairs, etc that may be in the future.

Location: figure out where you want to live. It's plain and simple. Whether it be the city or the burbs, or even rural, you need to identify where you want to be. Ask yourself if you want to be close to nightlife, or close to work, or maybe both. Do you need to have access to major roads, or are you ok with fighting traffic to get there? Really assess your priorities, and it helps to write down the pros and cons of each location you're considering. Looking at something on paper really helps.

Often times, price may be a factor your choice of location - i.e. you can only afford a home in a certain area. While you should never settle for something simply because you can afford it (and it meets no other of your criteria), it's helpful to look around at what you can afford, and then maybe step up to the next price point and see what's available in your desired location. Sometimes, waiting a few extra months to save the additional money will be worth it.

Home Type: know what you want, or if you don't know exactly, know what you are open to considering. Maybe you want a condo. Or is it a row/twin? Is a single family house what you desire? Maybe you need to look at a few to know. This is all ok. Consider the maintenance involved with each - do you want to pay a condo fee to have everything done for you or do you like the idea of having to do some work around the house? Home type is personal preference, and what works for one person won't work for another.

Also to consider in home type is if you want something that is move-in condition or if you want something that needs work (and what degree of work you want to do). Are you ok with a house that has tons of potential, but needs to be gutted and re-done to see it? Or maybe a one-room-at-a-time improvement is what you want? Or are you ready to move-in and have nothing to do for a little while? You need to decide, but you may want to consider more than one combination simply to open up your options, but don't bite off more than you can chew.

These three pieces are, in my mind, key pieces to buying a house. But with all of that said, the most important piece is...

Compromise: you need to understand that you are going to have to compromise (well at least 99% of the time). It's your first home, and you are not going to get everything you want. There - I said it. Sorry, but you will not. You need to identify what you are hellbent on having, and what you could do without. Maybe you are willing to compromise on price (i.e. spending a little more to be where you desire or to have a home that needs not work), maybe you are willing to compromise on location (i.e. being another mile away from your idea location because you can get a single instead of a row), maybe you are actually willing to compromise house type to live in your desired area (you buy a twin instead of a single but are close to nightlife and highways).

In any case, no matter what price range you are in, you need to weigh your priorities, and know that you're going to have to budge on something. What you budge on, you will need to decide (for me, it was to be a bit further from the nightlife, but to have a single home instead of a row that needed virtually no work).

And to wrap this all up...

Wait for It: it is my firm belief that your house will find you. Through a series of events, the two of you will come together. I looked for 18 months at over 60 houses, with two different realtors. There were a lot of dumps and a lot of gems during the way - but fate did not make it happen - things were at contract before I could offer, home inspections discovered underlying disasters, even neighbors telling me things about places that I did not want to hear. These things happen for a reason.

In the end, though it may seem an eternity while you are looking, it will be worth it in the long run. You will find the house, even with the compromises that you make, and you will know. You will know before you even walk in the door. And if you don't feel that way, don't buy it.

I've talked to countless friends who have said the same thing - first home, second home, even third home. You just get that feeling, when all of the pieces finally come together - you know when you know.

Good luck!