4 Surprises About Home Ownership

Happy April everybody! The hottest time of the year, both literally and figuratively, to purchase a home is coming up and for a lot of people, they will be first time homeowners! Speaking from personal experience, outside of holding your child for the first time, and saying "I do", there may be no greater feeling. Today we go over 4 big surprises that most first time homeowners face and a few ways to prepare for them!

1. Insurance and Property Taxes and How They Work - When you first purchase your home with your fixed mortgage, you may be under the assumption that this note will be your monthly note for the life of the loan. Unfortunately, that will never happen. Taxes will always go up, as will insurance. The takeaway here is straightforward: MAKE SURE YOU CAN AFFORD MORE HOUSE THAN YOU PURCHASE. Regardless whether you put your property taxes in escrow or not, make sure you keep note of that information and when it comes time for insurance, shop!!!

2. Neighbors - This is a lot bigger than most people realize. Your neighbors can greatly influence your quality of life. From noise, to animals, and lights to parking, the list goes on and on. I suggest getting to know, not just your neighborhood, but your neighbors. If you are seriously considering a property, get out on the street and walk around. If you know you are going to be out and about in the morning, do it then, likewise if you are more of an evening person. Get a feel for who you are destined to be moderately intertwined with for a while. Trust me, you will NOT regret it!

3. External Factors - Any number of things can affect what you can do with your home and what it is worth. The obvious ones here are HOAs and zoning permits/laws. Get a copy of the rules and bylaws and understand what you can and cannot do. Zoning permits/laws can change the characteristics of your neighborhood "over night". If your property borders ANYTHING other than roads or other residential property, DO YOUR RESEARCH!. Check the long term plans on file with your county, or better yet, expect your real estate agent to be on top of this for you;)

4. Attachment & Satisfaction - When you finish a book, graduate from college, complete a marathon, you feel a sense of accomplishment. Home Ownership is like that, but ten-fold. The improvements and memories you make, to you, are often going to be priceless. You will become obsessed with that kitchen faucet you replace or that bookshelf you build for your daughter. You will go to work all day, and when you come home, you will sit down in YOUR chair in YOUR house. Speaking from experience, THAT is priceless! Do not underestimate THIS as possibly the greatest part of ownership!

In Conclusion...

Even if it is not absolute freedom, there is a certain freedom you feel from owning your own home. The negative is far outweighed by the positive and it is the first true step to building wealth in America. I am a firm believer of the "American Dream" and with my wife being a foreigner, she assures me, it is real. It is our job to make sure you are prepared and to quote a good friend of mine, "We love our job"!