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Top 10 Things I Wish Someone Would Have Told Me When I Bought My First House

By
Mortgage and Lending with Platinum Home Mortgage Company NMLS #238304

 1.   You are 25 years old. In 15 years, you will be 40 years old. Wouldn't you like to have this house paid off and be only 40 years old?

2.   The price of buying a FIXER is you have to LIVE in a fixer, and be chained to it on weekends (when you should be out having fun) You are only young once.

3.    You can change the ugly carpet, but you can't change the ugly location.

4.    Buying a house should be about making memories, not making money.

5.    Believe it or not, the real estate agent knows more about real estate than you do.

6.    Buying a house is like having a baby. You forget the labor pains the moment you see the baby.

7.    Getting the house before the financing is like getting the cart before the horse.

8.     Your friends are just jealous.

9.     Is this house REALLY worth the commute to your job?

10.   Psssst! It costs more than just the payment to have a house, and the yard doesn't take care of itself, either.

 

Comments (58)

Megan Izdebska & Hanna Manoufar Chandler, Scottsdale Real Estate Agent
United Brokers Group - Chandler, AZ
Double Commitment. Double Results.

The number 5 is my favorite. On avarage it happens 8 times out of 10:)

Mar 20, 2010 09:48 AM
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
Eugene Oregon's Best Home Search Website

Number one is the best. 

 

You are 25.  You want your house paid off by 40. 

Buy with a 30-year loan (in case you ever need a lower payment).  But have the loan officer qualify you based on a PI payment about 22-27% more than the 30-year would require. 

Then pay that higher PI for 15 years.  You will be free and clear.  You will save tens of thousands of dollars in interest for every $100,000 you borrow.

You will be in the smart 1% of all buyers.

You'll be so well off you can take that REALTOR who gave you this great advice on a cruise somewhere.

Mar 20, 2010 10:27 AM
Janet Guilbault
Platinum Home Mortgage Company - Walnut Creek, CA
San Francisco Bay Area Direct Mortgage Lender

I agree with Jim. Number one is the best advice.

Mar 20, 2010 11:43 AM
Linda Landry
HomeSmart Realty - Tucson, AZ

#1 should be:  The biggest house on the block is not the best buy, the smaller house in good condition is the better buy.  That big house will bring up YOUR property's value!  Buyers rarely think in terms of resale value.  Sure, longterm plans are great but someday, somehow you may HAVE to sell.

Mar 20, 2010 01:36 PM
Rich Flaim
Delmarva Resort Realty - Rehoboth, DE
Making Your Dreams Come True

Very insightful!  If only our buyers thought that way.

Mar 20, 2010 01:44 PM
Jeff Stewart
Stewart Realty, LLC - Eagle, ID

That's a great list to share, especially with 25-year old buyers!

Mar 20, 2010 01:44 PM
Aaron Silverman
SuccessfulRental.com, Bluewater Property Management, LLC and Lowcountry Turnkey Properties, LLC - Charleston, SC
Improving Real Estate Experience through Education

The value of a home down the road and profit from it should be a major concern when buying a home.  That is why banks require an appraisal when they lend money.  We would not be in such a mess if people showed a little more restraint when purchasing homes over the last few years. 

Mar 21, 2010 07:01 AM
KAREN SANCHEZ
Reputable Realty - Apple Valley, CA
...Marketing your home like no one else will.

#5 I'd add to that, I know more as your agent than your friends do.

Mar 21, 2010 11:42 AM
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Love this list Janet.  Most especially #4, #5 and #10.  Too many first time buyers have no clue about what home ownership entails. 

Mar 21, 2010 03:20 PM
Michele Reneau
Certified Staging Professional (CSP) Elite Instructor - Summerville, SC
Realtor, GRI ~ Charleston, SC Relocation Experts Team

Janet-Love your #1. I bought my 1st house in 2001 when I was 24 years old at 7% on a 30 yr fixed. A year later, rates plummeted and I refinanced into a 15 yr fixed at 4.75%. That house is going to be paid off in 7 years when I'm 39. It's been a rental for the last 5 years, but doing a 15 year fixed was the best decision I ever made!!

Mar 22, 2010 01:48 AM
Bill Buettner
Keller Williams Greater Columbus - New Albany, OH
Your Real Estate Connection

Great top 10 list!

Thanks Janet

Mar 22, 2010 01:58 AM
Sherry Davidson
Davidson Realty, Inc. - Saint Augustine, FL

Great List! I really enjoyed the post. I just bought my first home in January at 23 years old and luckily I love the location and got to take advantage of the $8,000 tax credit. It was a short sale, but I didn't have to fix anything. It was built in 2005 and is in great shape. There really are some great deals in north St. Johns County. I think I made a great decision and am so happy with my new home!

Peyton Davidson, VP of Marketing and Social Media

Mar 22, 2010 04:43 AM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Janet - As always, great post and great advice.  As a mortgage gal, I feel like I am constantly repeating so much of these points.  The two that I find myself repeating the most these days (practically every day) are #6 & #7.  Going to reblog you.  :)

Mar 22, 2010 06:17 AM
Cari Anderson
Danville, CA

This is all so true! Especially the last one - taking care of a house takes so much more than just the PITI! And if you can't take care of the yard, a condo might be the best deal for you. Thanks for the great post!

Mar 22, 2010 06:50 AM
Lydia Puller, Realtor
Vanguard Properties - San Francisco, CA
Homes for Sale in San Francisco, Marin & East Bay

I promised myself last year that I would never do #2 on your list again. I buy fixers, move in and get tied down to the house. From now on its move-in quality for me and straight investments with fixers. I wish someone would have mentioned item #1 to me when I was 25 but at 25 I wasn't listening or thinking about owning a home!

Mar 22, 2010 05:46 PM
Chris Wechner
CW Health Inc - Waterford, MI

Succinct yet effective.

I really like the comment about the commute.

I think you were very clever when you compared changing the carpet vs. the location.

Mar 24, 2010 04:41 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Hi Janet!  I love this post--found you on a re-blog!  I do love #1 and wished I had considered that with my home purchases--keeping out of the equity tap is critical too!

Apr 11, 2010 04:38 PM
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

I like your list, especially #5. Everyone is a real estate expert!

Apr 18, 2010 05:01 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Great list! Just found this through Vickie's re-blog.

"3.    You can change the ugly carpet, but you can't change the ugly location. "

Just sold an ugly house that happened to be in the right location for the buyer.

Margaret

Apr 28, 2010 06:38 AM
Matt Robinson
Professional Investors Guild - Pensacola, FL
www.professionalinvestorsguild.com

Great list, especially the 1st one.  When I was 25, 40 seemed so far away, but now at 32 I realize how fast it will be here.  It's amazing how much "time" is a critical element in building wealth.  Thanks for the post!

Aug 23, 2010 05:41 AM