8 Home Buying Tips (and why they matter)

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Buying a home can:

- Boost your net worth.

- Create a store of wealth.

- Become an asset you pass on.

Unfortunately, owning a home isn't something you learn about in school.

Homeownership

Not knowing what to expect can lead to:

- Unexpected costs.

- Uncertainty.

- Stress.

Luckily, the basics aren't hard to learn. Homeownership has a lot of upside.

Over the past few years, buying a home has been tough.

But with planning and patience, it's still possible.

I did over 500 home loans at JPMorgan Chase as a banker.

Here's 8 home buying tips:

Tip 1: Commission

People get paid when you buy.

Many work on commission.

For example:

- Loan Officers.

- Escrow Officers.

- Real Estate Agents.

When seeking someone's homebuying "advice".

It's important to remember—

Your opinion matters most (ultimately) since you make the monthly payment.

Tip 2: Your Taxes

Owning a property comes with many tax perks.

For example, writing off:

- Your loan interest.

- Your property taxes.

- Your home upgrades.

Homeownership comes with many tax perks (review them with your cpa).

Tip 3: Reducing Your Payment

House hacking is a common way to lower your payment.

Owning a home with one of these can save you money:

- A livable unit in the backyard.

- A unit upstairs with a separate entrance.

- A garage converted into a living space with its own entrance.

Looking for a home with a "separate" rentable area can lower your monthly costs.

Tip 4: Your 1st Payment

Your first loan payment is often delayed.

It may not be due for:

- 1 full month.

- 2 full months.

Your loan officer will share when your payment begins.

Not having a payment for 1-2 months helps when going from renter to homeowner.

Tip 5: Furnishing Your Home

Filling your home with new things can be costly.

- The furniture.

- The appliances.

- The fresh paint.

It all adds up.

Set funds aside to help you "get settled" in your new home.

Tip 6: Your Yearly Review

Once per year your home loan payment changes.

Two reasons why include:

- Your insurance goes up.

- Your property taxes go up.

These costs are often part of your monthly payment.

Your lender will adjust your payment each year as your homeowner costs change.

Tip 7: Maintaining Your Home

Planning is an important part of homeownership.

As time goes on, you need to replace things like:

- A new furnace.

- A new fence.

- A new ac.

- Etc.

Putting money aside each month helps you prepare for home upgrades.

Tip 8: Home Prices

A home can be a great investment.

Prices rise over the long term.

- 2010 home price: $220,000

- 2020 home price: $335,000

- 2025 home price: $420,000

Home prices have been doubling every 14 years since the 1990s on average.

Conclusion

Owning a home can be nerve-wracking at first.

You learn a lot before buying — and after.

But it's a journey worth taking when the timing is right.

Keep building 💰

See you next week.