In the market for your first home? Plan to spend more time house-hunting than you’re budgeting for right now.

According to a recent report, 79% of first-time homebuyers missed work to find their first house, spending an average of 14 hours looking at properties. 

Part of the reason first-time homebuyers spend more time than they think they will is because they don’t realize how many elements there are to consider when buying properties.

To help you navigate the home-buying process more efficiently, we’ve put together a list of 13 key factors to assess when evaluating potential homes.

Keep reading to learn some key insights you can use to increase the chances you find a property that fits your needs, budget, and long-term goals — without the process dragging on for eternity. 

1. Location, location, location

You can change a lot about a house, but — unless you’re buying a tiny home on wheels — you can’t pick it up and move it. 

The neighborhood you choose affects your commute, quality of life, and even future resale value. Is it close to work or public transit? Are the schools highly rated? Are there coffee shops, restaurants, and parks within walking distance? Think about traffic, walkability, and upcoming development projects in the area.

Even if you find what seems to be the perfect house, a poor location can turn your dream home into a daily frustration. Avoid that stress by being laser-focused on the long-term implications of where you’re buying.

2. Your budget fit

Your budget is one of the most important factors when buying a home, so be sure to set a realistic limit of what you can afford before diving into the market. After all, the last thing you want is to fall in love with a house that’s out of reach or, worse yet, stretch your finances too thin — to the point you’re super stressed right after you move in.

Before signing a contract, consider the listing price but also additional costs you’ll be on the hook for — like property taxes, insurance, maintenance, and utilities. 

To make sure your first home fits within your budget, be sure to get pre-approved for a mortgage so you know exactly what you can afford.

3. Structural integrity

When it comes to structural integrity, you don’t want to end up like the pigs in the old fairy tale with straw and sticks houses. You want to make sure your new home is more like the brick house — with bones strong enough to withstand the elements, and a couple of kids, perhaps, too.

Check for cracks in the foundation, uneven floors, and sagging ceilings. These could be signs of major issues down the road.

You don’t want to find out that your dream home is a house of cards — or worse, could crumble after one blow from the big bad wolf. This is why it’s so important to complete a home inspection before signing on the dotted line. A good inspection will help ensure your house is built to last — regardless of any huffing, puffing, or blowing.

4. Neighborhood safety

When shopping for your first home, neighborhood safety should be top of mind. You want to feel secure in your new space — not like you’re a character in a suspense thriller.

As you continue your search, look into crime rates, local law enforcement presence, and community watch programs. Don’t forget to visit the neighborhood at different times of the day; what feels peaceful at noon might look different at night. Better yet, ask your would-be neighbors about their experiences; they’re the best resource for inside info. 

Ultimately, a safe neighborhood isn’t just about peace of mind. It also could help with future resale value!

5. Resale potential

Speaking of resale value: House-hunting isn’t all about how much you’ll love the property next week. It’s also about how much someone else will love it tomorrow.

Since buying your first home is a major investment, resale potential is key. Even if you plan on sticking around for the long haul, life happens. Whether you’re relocating for work, upgrading, or downsizing, a home that appeals to a wider audience can make all the difference when it’s time to sell.

As you look for your first home, think about factors like location, layout, and those “permanent” design choices (say no to neon green walls). Choose wisely — your next big move might just involve moving out!

6. Number of bedrooms & bathrooms

The number of bedrooms and bathrooms in your new home is a practical yet crucial consideration. 

While you might be perfectly fine with a cozier nest for now, think about the future. Maybe your family will grow, maybe you’ll start working from home, or maybe you’ll opt to rent out extra space on Airbnb. If you don’t have enough space, you’ll feel cramped; of course, if you have too much space, you’ll be paying for rooms you don’t really need.

Similarly, fighting over the bathroom at 7:30 in the morning isn’t anyone’s idea of fun. Having enough bathrooms can help you avoid such standoffs.

A good rule of thumb? Make sure there’s enough room to grow into — but not so much that you’re always cleaning rooms you don’t use.

7. Storage space

Storage space is one of those things you never think you need until you don’t have enough of it.

It’s easy to imagine your closet will magically fit all your shoes, winter coats, and that random stuff you always seem to accumulate. But trust us: Once you start living in your new home, you’ll realize that extra storage space is just what the doctor ordered.

Whether it’s closet space, attic storage, or a tidy garage, having room for your holiday decorations, sports equipment, and even that treadmill you’re totally going to use one day makes a huge difference.

So, when you’re house-hunting, ask yourself a simple question: Will my stuff fit comfortably?

8. Energy-efficiency

Energy-efficiency is a must-have in today’s home-buying world. Not only does it help reduce your environmental impact and keep your utility bills in check, it also appeals to future buyers who are increasingly focused on sustainability.

Look for homes with energy-efficient features — like double-paned windows, proper insulation, smart thermostats, and Energy Star-rated appliances. These upgrades can make a big difference in maintaining a comfortable home year-round — without breaking the bank.

Plus, if you’re house-hunting in a place with extreme temperatures, energy efficiency becomes even more important. Saving the planet while saving your wallet? Talk about a win-win.

9. HOA fees & rules

While homeowners association (HOA) fees and rules might not be the first thing you think of when house-hunting, they can have a massive impact on your life once you’ve moved in.

HOA fees typically cover shared amenities like pools, landscaping, and common areas. But these costs — which average $170 a month but can be considerably higher — can add up over time.

If you decide to move into a property governed by an HOA, it’s essential for you to understand how much you’ll be paying monthly and annually, and what those fees cover. You’ll also want to be aware of the HOA’s rules — some may restrict things like parking, home renovations, or even the color of your front door!

10. Age of utilities

When shopping for your first home, don’t forget to check out the age of the utilities — your HVAC system, plumbing, furnace, water system, and electrical setups.

While these might not be as exciting as granite countertops or a walk-in closet, outdated or failing utilities can lead to expensive repairs down the road. A well-maintained furnace or plumbing system can save you from unexpected headaches — helping you save more of your hard-earned cash.

As you narrow down your options, be sure to find out how old such systems are and whether they’re approaching the end of their lifespan. If they are, consider negotiating for replacements or factoring the potential cost into your offer.

It might seem like a small detail. But it’s a detail that can save you big over the long run!

11. Natural light

In many ways, natural light is the secret ingredient that makes a house feel like a home. It can brighten your mood, make spaces feel larger, and even help you save on energy costs. 

When house-hunting, pay attention to how much light flows into each room — especially the living areas and bedrooms. Look for windows that face south or west for maximum sun exposure throughout the day. Skylights and large windows can work wonders, too. 

Not only will natural light make your home more pleasant to live in, it can also boost your future resale value. Who doesn’t love a sunny spot? 

12. Parking

Parking: It’s one of those things you don’t appreciate until you don’t have it.

Imagine coming home after a long day only to circle the block three times in a futile attempt to find an available parking space. Not fun, right?

When buying a home, consider how easy it is to park — especially if you’re in a busy area. Does the house have a driveway? How about guest parking? Will you need a garage to store all of your stuff or just park your car?

Remember, the joy of a guaranteed parking space is a luxury worth having. Don’t overlook it!

13. Outdoor space

Outdoor space can be a game-changer for your home. Whether it’s a small balcony, a cozy backyard, or a sprawling garden, having a spot to enjoy fresh air can make all the difference.If you’re into grilling, gardening, or just lounging in a hammock, outdoor space gives you room to stretch out and unwind. 

Think about your lifestyle. How much space do you need for entertaining, playing with your pets, or just relaxing with a good book?

Outdoor space is a feature that really boosts your home’s overall vibe. Make sure you’re okay with whatever space you have to soak in some sun.

Take the next step in your homebuying journey

Finding and financing your first home can be an exciting but overwhelming journey. That being the case, having an expert at your side can make all the difference.

Real estate agents, mortgage brokers, and financial advisors can help guide you through the homebuying process — providing valuable insights into the market, financial options, and negotiating tactics. Their expertise not only saves you time but also helps ensure you make informed decisions that fit your needs and budget.

When you’re ready to take the next step in your homebuying journey, don’t hesitate to reach out to a trusted advisor. After all, this is one of the biggest investments you’ll ever make — and you simply cannot afford to make a decision you’ll later regret.

Here’s to ending up with the home of your dreams!

Pssst: Guess what? Your household may qualify to save an average of $5,000 on your home purchase. Take our quick quiz to find out.

Debt can leave you feeling trapped, so learn how to get out of debt fast!

Even when you’re making minimum payments against your credit card debt, interest eats up the bulk of what you pay, and you see only minor gains — if you see any gains at all.

Even worse, when you have multiple debts, it can feel like you’ll never get ahead. After all, you’re already working hard enough as it is, and you’re still struggling with repayment. 

If all this sounds exactly like your personal finance situation, it’s time to ask yourself a very serious question: What more can I do to get out of debt fast?

First, you have to prioritize your debt and attack debts with the highest interest rates first. Second, you need a debt repayment solution that fits your unique financial needs.

While every person’s portfolio looks different, there are best practice solutions most people consider to break free from the shackles of debt and achieve their financial goals.

In this article, we’ll introduce you to the options you can explore to get out of debt, improve your credit score, and otherwise strengthen your personal financial situation. 

Americans are accustomed to financing everything

If you’re considering how to get rid of your debt, the first thing you need to know is that you’re not alone. In fact, most Americans seek financing to cover everything from big purchases, like home mortgages or car loans, to small purchases made with credit cards.

Overall, from 2020 to 2021, debt levels increased by 5.4%. By staying laser-focused on debt management and coming up with a repayment plan that helps you pay down your debt, you can save a significant amount of money over time instead of having your extra cash whittled away by high-interest debt.

Debt-free living made easy

If you’re looking to improve your financial health, raise your credit score, and get debt relief, you’ve come to the right place. Here are some tactics you can use to keep extra money in your pocket. 

Pay the minimum payment plus principal

Unfortunately, if you just cover the minimum balance on credit card payments, you’ll usually end up spending more money on interest than the actual balance.

When you pay more than the minimum monthly payment, the excess funds will help pay down your entire balance. This means high interest rates won’t hurt you, and you’ll be able to whittle down your debt faster. 

Even better: Try as hard as you can to pay your credit card bills in full each month because this type of debt is super expensive. If you’re in a deep debt hole, consider taking on a short-term, part-time job or starting a side hustle until you climb out of it.

How it works

There are two ways to ensure your payment takes a chunk out of the principal of your loan payments: 

• You can continue to make monthly payments while increasing what you pay to ensure at least some of the funds are applied to the principal. For some debt payments, you can specify on a payment slip or online portal what amount is being applied to the principal.
• If you can’t pay your bill in a lump sum, you can also schedule a second payment to be made before the due date in the current billing cycle. This will help you spread out your payment allocations but still achieve the same result of paying extra each month — getting you started on your debt reduction journey.

Prioritize payoffs with the debt snowball method

If you’re going to get out of debt fast, you must begin paying some of these debts off. Start by putting your list of debts in order from biggest balance to smallest. Using the snowball method, you pay off your debts with the smallest balance first. By focusing on one debt at a time, you can prioritize which debts to eliminate first.

How it works:

Continue to pay at least a minimum payment on every debt to ensure credit bureaus like Experian still look at you favorably. Then, make additional payments against the debt with the smallest balance until you pay it off in full. After that, start the process over with the next smallest debt balance on your list. 

Or use the debt avalanche method instead

If you’re not keen on the snowball method, you can try the debt avalanche method, which encourages you to focus on the high-interest debt first and work your way down to debt with lower interest rates from there. It’s essentially just a mirror image of the snowball method.

When paying off your debt, there’s no right or wrong method to use. You just need to create a debt management plan and stick to it.

Ultimately, everyone has different financial preferences and is working with different lenders. So, while someone might benefit from the snowball method, another might find the avalanche method to be more effective.

Refinance debt

When you’re trying to get out of debt, keep a pulse on the financial markets and try to recognize you may be able to get better interest rates on your debt compared to your current agreements. If you can, take advantage of these lower rates by refinancing current loans using a debt consolidation loan.

If this sounds intimidating, don’t sweat it. A loan specialist can help you through the process of refinancing a mortgage, home equity loan, auto loan, personal loan, or student loan.

Similarly, you can use credit card balance transfers to lower your credit card debt. If you have a credit card with a high balance, look for opportunities to transfer that balance to a card offering 0% percent APR for a set amount of time. Usually, this will give you six to 21 months to pay off the credit card without any interest fees. That should help you repair your credit report — making issuers happy, which comes in handy if you ever need to take on new debt.

How it works:

This solution requires you to do your research — or at least enlist the help of a credit counseling service. You’ll need to know the current terms of your loans and credit card interest rates. When you recognize opportunities for better interest, work with a trusted financial institution to refinance your loan. If you’re comfortable doing it yourself, just search for 0% APR credit card opportunities. A word of caution: If you plan to transfer a credit card balance, make sure you can pay off your debt by the time the promotion period passes.

Make lump sum payments

If you’re lucky enough to get a significant cash gift or a hefty tax return, put that money towards your debt (assuming you’ve already got an emergency fund built up). One large lump sum extra payment can significantly impact your debt-payoff goals. 

How it works:

This one is easy. When you get a windfall of extra funds, apply it to your balance as fast as you can. 

Settle your debts

At the end of the day, creditors just want to get paid. So, if you’re having trouble making payments while working your way out of excess debt, you might want to try your hand at negotiating with creditors. In many instances, creditors will agree to settle your debts, often for less than you already owe. Keep in mind that debt settlement can adversely affect your credit score if you stop making payments during negotiations. So, choose your course of action wisely. 

How it works:

Pick up the phone and call your creditors if you’d like. If that thought makes you uncomfortable, hire a third-party settlement service to assist with this process for a fee. Just make sure you do your homework to confirm that the settlement company you select is credible. According to the Federal Trade Commission, there are risks associated with debt settlement. You just need to be on the lookout.

The road to financial freedom

Now, you have the blueprint to help you achieve financial freedom! Commit to tackling at least one of these solutions and watch your debt dwindle before you know it.

As you work your way out of debt, continue to analyze your current budget and make a spending plan. By doing so, you will continue to free up resources that can be applied to your debt.

As an added bonus, you’ll learn improved money management skills that can help you avoid future debt. By decreasing your debt, you’ll see your credit score go up — and your pulse rate go down — because living debt-free means living stress-free. 

Here’s to getting out of debt — quickly and painlessly!

Disclaimer:

The content provided on this website is offered for educational purposes only. While we endeavor to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the content for any purpose. Visitors are advised to consult with qualified experts before making any financial decisions or taking any actions based on the information provided on this website.

If you’re like most people, a home is likely the biggest investment you’ll ever make. That being the case, you’ll spend a lot of time and energy finding the right place—particularly if you’re going to be a first-time homeowner.

When you’re ready to begin the home-buying process, you’ll probably already know a lot about the house you hope becomes your dream home. However, it’s a good idea to do a little more investigation and get some answers to key questions upfront. As a result, you’ll be able to make your purchase with greater peace of mind.

Reviewing public records as well as talking to the seller and the seller’s agent can fill in details that will help you make a more informed decision. Here are the 10 great questions to consider before making an offer on a home—whether it’s a buyer’s market or a seller’s market.

1. How much did the seller pay for the home?

You should always ask about the original purchase price even if it has nothing to do with the current value of the home.

If the seller bought the house five years ago and didn’t do any renovations, you might not want to come in with a high offer price unless the local market is a very competitive market.

When you know how much the homeowner spent on the house, you may be able to negotiate a better sale price in good faith.

If you’re a first-time home buyer, you might also want to ask the seller why they’re selling their current home in the first place. You might be able to get the inside scoop from their realtor, which could help you win the bidding war with a lower price.

2. What’s the real estate market Like?

As you continue the house-hunting process, spend some time researching how the housing market is doing in the neighborhood you’re considering. You may want to compare all of the homes that have recently sold with all the active, under contract, and active listings in the past year or two.

See how the home’s listing price compares with other homes on the market. Is it the most expensive or least expensive property? Does the home price fall somewhere in the middle?

If you’re able to find a dream house that has a reasonable asking price, you may end up entering into a purchase agreement that leads to strong financial returns down the line.

3. How long has it been on the market?

In the real estate world, DOM stands for days on market. Generally speaking, the longer a home is on the market, the less it sells for. The DOM clock starts as soon as a house is listed for sale. Only when a transaction is categorized as “pending” does the clock stop.

The longer a home sits on the market, the more questions you should be asking. Maybe the listing is sloppy or has inaccurate information. Or perhaps there’s something wrong with the house that keeps coming up during home inspections, which is causing the seller to experience a pattern of failing deals.

Whatever the case may be, the longer a house sits on the market, the better the chances are that you will get a more favorable sales contract if you continue pursuing the property.

4. What is the market value of the home?

The market value of a home is a key factor to consider before making an offer. After all, the last thing you want is to pay New York City prices if you’re buying a home in a rural area of Iowa.

Unfortunately, this isn’t an easy question to answer. For the best results, you can enlist the help of a real estate agent to answer this question by conducting a comparative market analysis.

Comps, or recently sold properties that are comparable to the one in question, can help you determine what to offer based on sales in the area. Agents who are familiar with the market know what houses sell for, what sort of offers people are making, and how to compete. They can also walk you through the earnest money deposit process and help you figure out how much to put down for a down payment, whether you need to make a cash offer to win a deal, and how much to counteroffer when there are multiple bids.

At the end of the day, it’s impossible to know whether you’re getting a good deal on a home sale unless you know how the local market has been performing.

5. Are there any problems with the house?

Even though they’re not legally required to do so, some sellers will share information about the home that paints it in a negative light. For example, a seller might say that the septic tank will need to be replaced within the next year.

Sellers do this so that things like an inspection contingency or an appraisal contingency don’t kill the deal. After all, they don’t want a prospective buyer to get to the inspection

It’s not in their interest that you get to the inspection stage, discover a problem, and subsequently back out of the deal. So, be attentive to the seller’s information about the home’s condition. You may find out that key fixtures have been updated lately, which is good.

6. What’s the resale value like in the neighborhood and what will it likely be in the future?

Since a house will be one of the biggest purchases you’ll ever make, your investment should hopefully become more valuable over time. Getting the perspective of your real estate agent and your mortgage loan officer will increase the chances you make a good investment.

The ideal house should be located in an area where property values are consistently rising. By buying a house in such a location, you can get better gains from the sale of your home at some point in the future.

Of course, just because a neighborhood is performing well now doesn’t mean that will always be the case. Population changes, new construction, and other events could cause your home’s value to decrease over time. If you think a house is likely to depreciate soon, pass on the deal.

One way to gauge whether a neighborhood is trending in the right direction is by attending a few open houses in the area and just talking to owners and agents. Keep your ears open; you never know what you might hear.

7. What are the closing costs?

When you’re buying a home, money is incredibly important. This is why it’s critical to find out whether you qualify for mortgage preapproval before submitting an offer letter. After all, the last thing a seller wants is to enter a deal that has a financing contingency.

As your mortgage lender will tell you, a preapproval letter is only the beginning. There are tons of costs to consider during the real estate process, including closing costs, which are one-time fees that you’ll pay when you complete the sale.

In most cases, closing costs tack on an additional 3% to 4% of the total purchase price. For example, if you purchase a $300,000 home, closing costs will amount to $9,000 to 12,000 on top of that. These costs include appraisal fees, inspection fees, lawyer fees, notary fees, and taxes related to land transfers.

Additionally, there are some one-time costs that aren’t included in closing costs. Plan for any renovations you may need for your new home, including moving expenses and utility setup costs.

8. How old are important components of the home?

A home’s appearance is less important than its age or how recently it’s been renovated. Eventually, important components of the house—such as the water tank, air conditioner, heating system, septic system, plumbing, electrical system, and appliances—will need to be repaired or replaced.

Of course, no equipment lasts forever. But before you sign on the dotted line, you need to be aware that old or poorly maintained appliances might need to be replaced, and that you may have to spend a great deal of money sooner than later if the seller hasn’t updated them in a while.

9. Are there any other offers on the table?

Unfortunately, you may be up against multiple offers when you go to buy a home. That being the case, it’s good to understand what you’re up against so you can prepare a well-timed, competitive offer for the property.

10. How soon can the seller close?

Before making an offer on a home, it’s also important to understand the seller’s timeline. How much time does the seller need to move out? Has the seller found a suitable property yet? What is the seller’s preferred closing date?

The seller’s timeline is not only important for ensuring that your offer fits within their timeline but it also helps to structure your offer in a more attractive manner. 

Suppose you’re currently renting and must leave your apartment in 45 days but the seller wants the deal to close in 90 days. In this scenario, entering into an agreement may not be the best idea.

Get informed to make the right offer

A real estate transaction is one of the most important investments you’ll ever make in your life.

That being the case, you need to ask important questions to determine whether the house is right for you and what the best price might be.

To do that, identify a trustworthy agent you can work with to find your dream home and make an offer that meets your needs and budget.

Here’s to landing an awesome property you’ll love for years to come!