With inflation on the rise, the impact on rents is immediate. We are already experiencing this, with the average apartment studio in San Diego renting for $2,417, up 23% from last year. On the other hand, buying a home is a hedge against inflation since your property will increase in value, but your monthly payment stays the same with a fixed-rate mortgage.
So if you are thinking of buying your first home to beat this battle against inflation and to start growing roots, here are some must-do’s to consider before making the first move.
Work with an agent that is always thinking of your best interest!
Purchasing a home for the first time is intimidating and comes with many steps. Your agent should be able to walk you through the process with peace and reassurance. I will guide you through this important transaction and provide honest advice to maximize your outcome!
Set realistic expectations about how much you can afford.
You may be thinking about the overall price of a property, but in the end, what matters most is not the value of the home but our monthly payments for it. Sit down and measure your expenses and income to figure out what you will be able to afford monthly. Consider property taxes and HOA fees.
Make sure you have a pre-approved letter from your lender
It is always better to be safe than sorry, be prepared! Having your pre-approved letter from a lender will help you significantly in the eyes of any seller.
Make a list of needs and wants, but prioritize the needs.
Consider your pros and cons when purchasing a home. How long will my daily commute be? Is there a grocery store nearby? Am I going to be close to friends/family? Make sure you do not compromise on essential or convenient neighborhood qualities.
Inspections are essential when considering buying a home
Reports are another intimidating factor in the process of purchasing a home. Most likely than not, every home will need at least a couple of repairs, and being present during the inspection will reassure you of your home’s needed repairs.
Trust your gut.
In this market, a great house will always have multiple offers. If the property feels right, act fast, or your window of opportunity will close!
Consider your best interest rate; shop around!
Mortgage loans work the same way credit cards do. Some have lower closing costs, others have lower interest rates, among other perks. When choosing a lender, make sure you get the best loan product for your needs.
Remember to consider closing costs in your budget.
When closing a home, some fees will need to be paid that can increase the total cost in the end. Remember to consider escrow fees, title insurance, and on certain occasions, transfer fees.
Does the neighborhood feel right?
Spend a few hours in the neighborhood, driving around, visiting public places and local shops. Does it feel like the right place for you? This is one of the most underrated things people consider, but it usually turns out to be the most important factor!
