Life has been pretty exciting in the Fairchild household lately. A few months ago, Josh paid off the last of his grad school loans. I’m naturally a very debt-averse person so getting his loans paid off was my first financial priority once we both graduated, followed by building a savings, and contributing to our retirements. Now that student loans are out of the picture, I feel confident about us moving into the next phase of our lives. For us, that entails buying a house!
We have a little under a year left on our apartment lease. We love our apartment and love being right in the city, so we’re not in a rush to move. We figure it gives us a chance to build up our savings, learn more about the home buying process, and get to know the different Omaha neighborhoods better. House hunting can be a lot of fun, but also very stressful, especially when there are two people involved in the decision-making. We want to make sure we’re being smart, thoughtful, and thorough throughout this process and have already learned so much. We’ve toured a lot of houses, met with a lot of professionals, and feel good that we’re on the right track to finding the home of our dreams. I believe plans are the keys to success, so I wanted to share my biggest tips for first-time home buyers before they start the house hunting process.
3 things to do before you start house hunting
1. Get your finances in order
Houses cost money, so before you start house hunting it’s crucial to know what you can afford. Take a look at your income and break out your expenses. How much can you afford to be paying each month for a mortgage? And don’t forget taxes and homeowners insurance! Nothing will affect your house hunting process as much as setting a budget.
Once you’ve got a ballpark house price in mind, go to a mortgage lender and get preapproved for a loan. When house hunting in markets where homes are closing the same day that they’re being listed, having a preapproval can be the difference between successfully buying the home of your dreams or disappointedly going back to the drawing board. Allstate offers a great breakdown of what mortgage lenders are looking for when assessing your mortgage application.
2. Decide your non-negotiables
Before you start house hunting it’s important to make sure you know your non-negotiables, and that you and your spouse are on the same page. Do you care most about location? Do you really want a three-car garage? Whatever your must-haves are, knowing what matters most to you will help you stay on track when house hunting and will help you better evaluate houses because you’re evaluating them against what matters most to you. In the same vein, make sure you both know each other’s automatic no’s. If you will never live in a house that has a pool or is located next to a fire department, knowing this helps you save time and easily rule out homes that may otherwise appear tempting.
3. Find a realtor
As first time home buyers we really don’t know what we’re doing. And as transplants to Omaha, we’re not as familiar with the neighborhoods as locals. Finding an experienced realtor you like and trust gives you access to a wealth of information both on the home buying process, and the areas you’re looking to buy in. Plus, for a buyer, it’s a free service!
Once you get these three things under your belt you’re ready to start house hunting. And when you do, I highly recommend taking Allstate’s Home Checklist with you. While it’s easy to get wrapped up in admiring the countertops and pretty light fixtures, you want to make sure you’re inspecting the things that really matter and cost a lot of time and money to fix in a house.
Questions of the Day: Are you a renter or a homeowner? Homeowners: what’s your biggest piece of advice for renters? Renters: what are you most curious about home ownership?
This post was written as part of the Allstate Influencer Program and sponsored by Allstate. All opinions are mine. As the nation’s largest publicly held personal lines insurer, Allstate is dedicated not only to protecting what matters most–but to help protect your firsts and the moments in between. Share your firsts with #HeresToFirsts
Nice tips 😉
xx
Thanks girl!
Yay, what an exciting adventure! I love looking in people’s homes #notashamed
First time home buyers should also budget in maintenance feeds (if things break, if something leaks, yard care, etc.), furniture to fill the house, property taxes (a few thousand dollars per year usually) and closing costs (which can be a few thousand dollars required at the closing table).
I definitely recommend reading Rich Bitch by Nicole Lapin – she discusses everything from buying a home to saving for retirement to budgeting. Like you, I’m pretty good with money, but this book was still life changing!
Alec
Just added that book to my reading list!! Thanks so much girl!!
Very useful!
Thanks so much Britt!
My husband and I are a way’s away from buying a house, but I’m loving these tips Erin! Also congrats to Josh for paying off his school loans!
Thanks Jen!! It was a big milestone for us! 😀
Great tips! Thanks for sharing!
Glad you liked them Sam!
I am looking forward to buying my first home. I am learning a lot due to my mother recently bought a major fixer upper. There are so many extra small costs that add up. I found out that the cost of labor far out weighs the cost of materials. And most recently I have learned that you have to get in there and get dirty sometimes in order to meet your deadline. Thank you for sharing.
Yes! Labor is the most expensive part! We’re definitely trying to build up an extra savings buffer!
You definitely need to know what you HAVE to have and what you can live without- totally key to being happy with your new space! 🙂
Yes! Thankfully Josh and I have been in agreement on this! haha
Great tips Erin! The non-negotionables are a big one for us. As we are just getting started with the house hunting process and like you guys, we’re new transplants to Colorado so we don’t know the area as well as someone born and raised her might. Knowing that there will be new things to learn about owning a home where there’s real weather (we’re originally from Southern California where is barely even rains), there will also be key things that we’ll have to negotiate on in order to get what we want. BUT knowing what the non-negotionables are, that should help us be able to make better negotiable decisions, and pick the right home. So excited about this new process!!! Thanks for the great post!
So glad you liked the post Julie! Best of luck house hunting!! I love Colorado!
Love these tips! As a homeowner my advice to renters is to save more than what the “book” tells you to. There are always hidden costs when it comes to buying a home, we ran into a few thousand of them! What our builder failed to tell us was that they did not intend to pave our driveway (it was a new build) and the city came around just after they left and told us we had less than 30 days to pave it or get fined! We had to shell out $1500 that we did not expect. I would say to have a buffer of $3000-5000 as an emergency fund. And if you don’t use it, buy some furniture for your new place! xx Rox-Anne
Such good advice Rox-Anne!! Definitely taking this to heart!
Great tips! House hunting can be fun but stressful!
Yes! I’ll be so happy when we find the perfect house for us, are moved in, and can begin making it a home!
This was so helpful! My boyfriend and I have been house hunting and I have possibly been the most stressed between the two!
I am definitely the most stressed between the two of us! Glad I was helpful! 😀