Tips for a First-Time Home Buyer

Dear Dave,
I’m 20 years old, and I’m planning to buy a home in the next year. Besides having a 20% down payment, what other tips do you have for a first-time home buyer? Also, is there anything I need to guard against when it comes to buying a house?
Jacob

Dear Jacob,
I’m glad you’re planning on making a down payment of at least 20%. That’s a smart move, because it’ll help you avoid the added expense of private mortgage insurance (PMI). Also, remember to get a 15-year fixed-rate mortgage loan, one where your payments are no more than 25% of your monthly take-home pay.
Now, the next pieces of advice are for you, Jacob, and anyone else who’s planning to buy real estate. Always get title insurance. Always! If you’re buying a piece of property that’s not a traditional subdivision-type lot, have a survey done. This isn’t as much of a worry with a standard subdivision lot, something that’s pre-platted and has changed hands three or four times. But you don’t want to buy a piece of land under the impression that it’s 3 acres and then find out the hard way it’s only 2.25 acres. Get a home inspection too. Unless you happen to be an electrician, contractor or something like that, you’re probably not an expert on things relating to home construction.

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