Purchasing a home for the first time can be exhilarating however, it can also be frustrating at the same time so it’s important to be prepared as much as possible. As an instructor of homebuyer education classes, I’m amazed at a lot of things that people don’t know. Usually by the time the buyers attend the class they’ve already found a home, made an offer, received mutual acceptance, and are now under contract. It’s rewarding to hear the feedback from people hearing that they received so much from the class that they weren’t aware of. That being said, I feel that if you’re considering making the largest purchase of your life that the homebuyer education class should be the first thing on your list.
Here is my list of the top 3 things attendees wish they would have known prior to putting in an offer:
1. Earnest Money- Often times people weren’t aware of the term earnest money and what it actually means. Earnest money is a deposit made to a seller showing the buyer’s good faith in a transaction. It allows the buyer additional time to secure financing and it is typically held in a trust or escrow account.
2. Home Inspection- The buyer has a choice of whether or not to get a home inspection. It is definitely recommended and the cost of it ranges from $200-$500. Getting a home inspection reveals things that could be potentially wrong in the home and it’s a good negotiating tool in asking for repairs.
3. PITI (Principal, Interest, Taxes, Insurance)- When you hear the term “PITI” this is what it’s referring to and depending on how your loan is set up this is what your monthly mortgage payment includes. Most people are under the assumption that the taxes on their home have to be paid twice a year. Knowing that taxes could be rolled into their monthly payment eased a lot of minds in the class.
Go to the Washington State Housing Finance Commission or contact me here. The class is approximately five hours but I promise that you’ll receive very good information. Just in case your schedule doesn’t allow you to attend in person you can also do the course online but there is a cost. It’s about $50 but it’s the best $50 you’ll ever spend……………………unless of course we’re talking about a great pair of shoes. Anyhoo, (I know, not proper but that’s how I like to spell it), the class covers a wide range of topics from picking your REALTOR, to budgeting, owning vs renting, checking your credit, and so much more! I’ll be back with more on Homebuyer Education and I’ll cover a few more topics. Until next time, ta-ta