Five Unexpected Factors for New Homebuyers

The homebuying process comes with its share of the unforeseen. While some shifts in fortune are outside anyone’s control, an experienced lender can help you make calculated estimations and guide you through the unexpected.

What unexpected issues could arise during the homebuying process? Here are five that deserve a bit of reflection before you dive in.

Unexpected costs

Most commonly, homeowners choose to make bundled monthly mortgage payments, inclusive of property taxes and insurance. While a fixed rate’s isolated monthly cost may remain steady, the surrounding charges are almost guaranteed to tick up over time. 

Insurance grows more costly as you make improvements to your home, and taxes swell as the market appreciates. Before you buy, give plenty of room in your budget to account for these costs to increase over the years. Think about your financial situation in terms of today’s reality and tomorrow’s potential.

Unexpected income

Unique programs across the country—namely Charlotte’s incentive to create affordable housing units—could present more opportunity for your home than you may realize. In Charlotte’s case, homeowners can receive forgivable, interest-free loans of up to $80,000 to convert accessory dwelling units (like garages or basements) into rentable housing units for local residents earning 80% of the area median income or less.

Talk to your broker or loan officer about what other programs that could exist in your area that might help reduce or defer some of the costs of homeownership. And in the process, you may be able to make housing more accessible for someone else! 

Unexpected neighbors

We all know the saying about good fences, but even the tallest fences can’t keep back an overgrown tree branch from steadily creeping onto your property. While we can’t choose our neighbors, we can choose our first impressions.

Housewarming etiquette would suggest a neighbor stops by with a candle or baked goods to welcome you to the neighborhood. Consider flipping the onus and embracing the German tradition: Bring a gift to them first. It’s a great way to get off on the right foot, and a surefire way to bank some goodwill off the bat.

Unexpected borrowing power

The moment you make your first payment on your home, you start building equity. Equity that can go a long way in helping you borrow for future projects down the road, whether it’s tackling upgrades on your property, starting a business of your own, or funding your education. As a homeowner, you’ll have access to new financial tools like HELOCs and home equity loans that, when managed properly, can help you build on success.

Unexpected confidence

All the above may give you pause before buying a home. But proper planning and working with a trusted lender can help you nip most homeownership concerns in the bud. With a loan officer who’s been there before, you can lean on their expertise at every step of the process and enjoy the memories yet to come.