Buying Your First Home: Everything I Did Wrong

Buying your first home can be a frustrating experience, but there are certain steps that you can take to help alleviate some of the stress. I am living, breathing proof of what not to do when you buy your first home. Never take advice from someone that does it right every time; it is better to take the advice of someone like me who failed in my mission to purchase my first home.

Here I was 24 years old and about to make that big leap from apartment living. I looked at several houses before finally settling on one not too far from where I started. The price fit my budget and the home was in a decent neighborhood - what more could I ask for? I did a walk through in the dark and decided to make an offer.

My mistakes started adding up quickly. I applied for a loan, which I got with no problem; however, the seller had not done all the proper paperwork to get the house on the market, so the process dragged on. By the time he got his stuff together, our closing date was due to expire. My mortgage company encouraged me to get insurance that did not require a home inspection in order to get the ball rolling. At the time, I was ready to have my own place, so I found an independent insurance agency that was just happy that I came to them. No inspection was required. BIG MISTAKE!

I bought the house and had the power and water turned on. Before I moved, I decided to see what the place looks like when light is shining on all the dark corners. I started running water in the bathroom and noticed the bathroom floors were filling with water. I immediately turned the water off and inspected other areas of the house. Water was already on the carpets. Turns out, the seller did the plumbing himself! The whole house needed new plumbing. I called him up and made him pay for the damages with the insurance premium that he had on the house. Thank goodness for that; however, my troubles were just beginning.

Within the first year of owning my house, I had to not only replace the plumbing but I also had an air conditioner that died in the middle of July, a water heater that electrocuted me, a front door that shocked me when it rained, a bad case of mildew on the side of the house ... the list could go on.

The point of this story is to help you save time and money. I may not be an expert or a real estate agent, but I now know what to do the next time I buy a house. Use my mistakes as a guide to what not to do when you buy your next house.

Eight steps to purchasing your first house

1. Research. This is so important. Read articles and tips such as this one as you attempt to buy a home. Research the neighborhoods that you wish to live in - read history and news. Research the going rate of other houses on the block. Try to make a decision based on education.
2. Enlist the help of an agent. This costs you a little extra money, but real estate agents are experienced and they know what to look for and what to ask about. No agent would have let me buy a house without an inspection.
3. Figure out what you can afford to pay. Talk to your agent or use a mortgage calculator to figure out what is the maximum amount that you can afford to pay for your mortgage. Decide whether you want a 15 or 30- year mortgage and whether you will pay it bi-monthly or monthly. Examine your lifestyle and figure out where most of your money goes. Consider other possibilities, such as having to purchase another car.
4. View several homes. Never buy the first house that you see even if it meets all your needs. You may realize that a walk through other houses draws light on some problems that you may not have realized with your first house. You may discover that the home is overpriced as compared to other houses in the market.
5. Take a walk through. Before making an offer go through the house and look for signs of wear and tear and anything that can be used against the seller when making an offer. Look to see if the house needs new carpet or a fresh coat of paint. Examine the ceilings and walls for signs of water damage or uneven surfaces.
6. Get it in writing. Make sure that you get it in writing when an offer is accepted. Continue to keep written records of deals that you make with the seller, such as carpet allowance or paint repairs. Have both parties sign written agreements.
7. Get an inspection. This is the best $300 that you will ever spend. If you end up not getting a home because of a home inspection, consider that money well spent. Pick an inspector from a well-known organization. Go over the inspection report thoroughly and look for items that must be repaired before you can move in.
8. Stay flexible. Do not be in a hurry to get into your new home. This is when mistakes are made. Do not start skipping steps to speed up the process. If the closing date is one month away, expect that it may be two months before you close. Once you can accept that nothing ever goes as planned, you can relax and take the necessary steps to ensure you really do get the house of your dreams.