The truth is buying a house will be the largest purchase most of us will make in our entire lives. Most younger folks don’t realize that, just because they can afford the base mortgage payment that generally doesn’t include extra costs such as, if you escrow, it then includes your house insurance and your real estate taxes. And, nowadays, a “set” interest rate actually doesn’t exist. Right now over HALF of our mortgage payment doesn’t even go against the principle of the home, that just covers everything else. So there are a lot of things to remember, especially when buying your first house! Not to mention closing costs, it all adds up FAST.

(This is a contributed post, for more information about my compensation please read my disclosure policy)

It is exciting and overwhelming to buy a house, whether it is your first or you are moving. Occasionally, it can seem like such a huge task and a never-ending process. It isn’t true, and you can buy your new house with ease if you follow some straightforward tips. These tips can help you buy a house.

Learn The Terms 

When you purchase a home or arrange a mortgage you might feel like you’re in another world just listening to the words. Often times, words and phrases that you simply did not know existed will be used, let alone understood.

The effort to understand the wording can really make a difference and will improve future communication and the entire transaction.

Be Realistic When It Comes To Costs 

The cost of buying a house isn’t just determined by the size of your deposit. You should be aware that buying a house has many other costs as well, such as surveys, attorneys, moving costs, and property tax costs.

You may also need to take into account the costs of furniture and furnishings if you are new to buying and have never rented or lived separately. You need to think about all the little costs too including tick control, renovations, and house surveys. 

Selling Your Current Home 

Buying a dream home can be so exciting and so tempting to rush into making an offer. It’s not always a good idea. You will need to sell your existing home to fund your move, so it is important to list this home for sale and know how much equity you have there, and how much will be available for your new purchase.

You run the risk of losing the other house if you rush in to look for a house without even listing your current home or agreeing to sell it first. Often, sellers give preference to those whose offers will result in a faster sale or a simpler purchase.

Prepare For A Mortgage 

It’s extremely unlikely that you will be able to purchase a home without a mortgage unless you have unlimited resources.

A preapproval for a mortgage is a crucial step in buying a new house. You will receive written confirmation that the lending company, the mortgage company, is willing to lend you the money to buy this property which ensures that you and your household can get the amount needed to complete the sale.

You will receive an edge over other potential buyers with this document, as it illustrates your seriousness and desire to go forward with the purchase. This step is still very important regardless of whether you have found the perfect property as it will allow you to learn how much mortgage you will be approved for.  You will be able to determine which homes to consider when buying a new home once you know how much you are approved for. 

These are four things that you really need to make sure you are prepared for when buying a home. Do you have any others that should be included? Please add them in the comments below.

(This is a contributed post, for more information about my compensation please read my disclosure policy)