What to Know Before Buying a Home: Hidden Costs, & Secrets to Save Big with Quiana Watson
Jan 31, 2025
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In this insightful discussion, Quiana Watson, a top real estate broker-owner, shares her expert knowledge on home buying. She breaks down hidden costs that many overlook, including property taxes and maintenance expenses. Quiana emphasizes the importance of understanding mortgage insurance and the role of credit in securing financing. She also shares tips for first-time homebuyers, from pre-approval to budgeting for utilities and HOA fees. Prepare yourself financially and avoid costly mistakes with her invaluable advice!
Understanding the full scope of homeownership costs, including property taxes and maintenance, is essential for financial planning.
First-time homebuyers should be aware that down payment assistance programs have specific eligibility criteria, often based on income and credit.
A pre-approval letter indicates potential borrowing capacity, but buyers must align their financial obligations with their actual budget.
Engaging qualified home inspectors before purchasing can help identify costly issues and enable buyers to negotiate repairs effectively.
Deep dives
The Importance of Automatic Savings and Investments
Acorns facilitates automatic saving and investing, making it easier for individuals to achieve their financial goals. By utilizing spare change and small investments, users can begin to grow their wealth without the need for large capital outlays or extensive financial knowledge. The platform offers a diversified portfolio tailored to users’ financial objectives, allowing even those with limited funds to start investing. This approach alleviates the stress associated with budgeting and managing investments, allowing users to focus on their long-term financial future.
Understanding Down Payment Assistance Programs
Many first-time homebuyers mistakenly believe they automatically qualify for down payment assistance programs. However, these programs are primarily designed for individuals in low to moderate income brackets, and eligibility often depends on factors like credit score and income limits. For example, in Georgia, specific criteria must be met to qualify for assistance, including a minimum credit score of 640 and limitations on personal savings. Aspiring homeowners are encouraged to seek guidance from real estate professionals to understand what assistance may be available and to prepare financially.
The Role of Pre-Approval in Home Buying
A pre-approval letter does not guarantee that buyers will be able to secure the full amount stated; it merely indicates their potential borrowing capacity. The calculation depends on the type of loan and an individual's debt-to-income ratio. Buyers should aim for a Good Faith Estimate (GFE) from lenders, which accurately details monthly expenses, helping them understand their financial obligations better. It is critical for buyers to align their purchasing power with their personal budget to avoid becoming house poor.
Recognizing Ongoing Homeownership Expenses
Homeownership comes with ongoing expenses beyond just the mortgage payment; these include property taxes, homeowners' insurance, and utilities. Many new homeowners are surprised by these costs, especially if property taxes increase due to rising property values. Maintaining a home requires budgeting for repairs and upkeep, as unexpected costs can arise—such as major systems like HVAC needing replacement. Regular maintenance ensures homes remain in good condition, which is vital for preserving property value over time.
The Importance of Proper Inspections and Assessments
Before purchasing a property, conducting thorough inspections is crucial as it helps identify hidden issues that might lead to costly repairs later. Buyers should evaluate both the general condition of the property and inquire about specific systems like plumbing and roofing to avoid future surprises. Engaging qualified home inspectors, engineers, or specialist inspectors for different aspects of the property ensures comprehensive evaluations. This proactive approach allows buyers to negotiate repairs or price adjustments before finalizing the sale.
SMART Financial Management and Budgeting Practices
Wise financial management is essential in preventing homeowners from stretching their budgets too thin. It's advisable to allocate a budget that captures all housing-related expenses—including renovations, furnishings, and emergency funds—while aiming to live below their means. Many experts recommend starting with a more affordable property and gradually moving up the market, allowing for savings and stability. Understanding the concept of living within one’s financial boundaries can help prospective homeowners build wealth without compromising their lifestyle.
Leveraging the Expertise of Real Estate Professionals
Choosing the right real estate agent can significantly impact the home buying process by providing critical guidance and negotiation skills. Prospective buyers should look for agents with a solid track record, an understanding of local market trends, and the ability to advocate for their clients’ interests. An excellent agent will not only explain contracts and contingencies but will also work diligently to secure the best terms and prices for their clients. Investing time in finding a qualified professional can lead to substantial savings and more favorable purchasing conditions.
Buying a home is one of the biggest financial decisions you’ll ever make, and being prepared is the key to success. In this episode, we sit down with real estate expert and top broker-owner, Quiana Watson, to break down everything you need to know before making this major investment. Whether you’re a first-time homebuyer or already in the process, this discussion is packed with essential insights to help you avoid costly mistakes and make informed choices.
We cover everything from closing costs and down payment assistance programs to property taxes, school taxes, and the often-overlooked maintenance expenses that come with homeownership. Many buyers focus only on the mortgage payment, but we’re here to discuss the real cost of owning a home, including insurance, repairs, and unexpected fees. We also touch on the importance of credit, how to position yourself financially before applying for a mortgage, and what lenders are really looking for when approving home loans.
Whether you’re looking to buy in 2025 or further down the road, this conversation will give you the knowledge you need to confidently navigate the home-buying process. Don’t go into this blind—watch now and learn the key strategies to secure the right home at the right price.
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