The Things Nobody Wants to Tell You About Buying a Home

If you’re considering buying a home in New Orleans and this will be your first home, congratulations. There are several wonderful perks that come along with owning your home. However, there are also some things you may learn along the way that will come as a surprise.

Often, when you decide you want to buy a home, you won’t have every piece of information you need. Many first-time homebuyers make mistakes and don’t plan properly simply because they were not informed. Here are some of the things you will want to plan for that you might not be aware of.

The Paperwork Will Seem Like a Mountain

You’ve probably signed a lease for an apartment or a home. If you thought that lease was a large amount of paperwork, then you will be absolutely shocked when you go through the home buying process. Not only will you have paperwork for the actual buying process and mortgage, but you’ll also have to deal with insurance paperwork, turning in all kinds of forms to prove income, along with plenty more.

Buying a home requires a ton of paperwork. It starts with the pre-approval from a lender and the paperwork your real estate agent will require. However, that’s just the beginning. The closing will seem like a never-ending paperwork nightmare, but it’s just a part of the process.

The Bills and Fee Will be More than You Pay Now

If you’re currently renting, you cannot just look at what you pay in rent and bills now and expect buying a home to be the same or similar. As a homeowner, you’ll handle all the utility bills, along with the mortgage payment, HOA fees, home insurance, PMI and more. In addition, you won’t have a landlord to deal with unexpected repairs and maintenance that will come up with your property.

Tax Breaks Help

Not all of the things you may not be aware of as a first-time homebuyer are bad. When you buy, you will gain the benefits of writing off mortgage interest, property taxes, closing costs and more on your taxes each year.

Hidden Costs Can Sneak Up on You

If you’re not prepared, you could run into some hidden costs during the home buying process. This could include things like the mortgage escrow, clothing costs or other fees. You may have to pay for surveying, an earnest money deposit, HOA fees, a loan processing fee or even an appraisal.

Cash Buyers May Outbid You

During the buying process, you may lose out to a cash buyer. They may outbid you on the home you thought was perfect for you. Even if they don’t outbid you, they could be the buyer chosen since they are a cash buyer and don’t need a mortgage.

You Have Very Little Control Over the Future Value of Your Home

While there are some renovations you can do to increase the value of your New Orleans home, the control is really out of your hands. Property values in any of the neighborhoods throughout New Orleans could fluctuate based on the buying and selling activity in the area. Your home could go up quickly only to drop just as quick or it could remain steady. Regardless, you don’t have complete control over the future value of your home.

You’ll Fall in Love with Homes You Cannot Afford

Most first-time homebuyers tend to look at homes outside of their price range. This is dangerous as those homes you can afford may not live up to the high expectation you’ve set.

The best way to avoid this is to get pre-approved before you ever look at a property. This will help you to better understand what you can afford and you won’t become as obsessed with homes you cannot afford.

Your Mortgage Will Likely Be Sold At Least Once

First-time homebuyers are often shocked when they find out their mortgage was sold to a new company. Lenders do this to free up capital and it will likely happen at least once. Usually, it’s no big deal and just means you send your checks to a new address, but make sure you keep careful records just in case.

There are several things you could be surprised about as a first-time home buyer. Hiring a New Orleans real estate agent experienced in helping first-time buyers will help eliminate many of the surprises. They will be there to field your questions and help you understand what’s going on throughout the entire process.