Being a first time home buyer can be complicated. Here are a few things that first-time buyers may not be aware of.
What First-Time Home Buyers Should Know
When it comes to houses, owning one is always the end game. Everyone talks about buying a house or buying their first house, but no one focuses on the transition from renting to owning. The transition can make you feel anxious or unsure, especially if you’re a first-time home buyer. Here are some things you’ll deal with during the transition from renting to owning.
Closing on a Home Isn’t a Quick Process
You’ve finally signed on the dotted line and you’re closing your home. You might feel as though you can finally breathe and start packing, but you need to put the brakes on for a little while. The closing process can take up to two months. If everything goes smoothly, your closing may move along faster than that. Your home could close in 30 or 45 days. However, if any issues pop up, like inspection problems or termites, this prolongs the closing process and can even cause the close to fall through completely.
Giving a 30-day Notice to Your Landlord Can Be Tricky
Since closing on a home can vary and can take a long time, it might not be clear when you can give your current landlord a 30-day notice. You don’t want to give the notice too early and then have nowhere to go at the end of the 30 days. You also don’t want to give the notice too late and then end up overlapping your rent and mortgage. It can get even trickier if you’re required to give a 60-day notice. The good news is that mortgages are usually paid at the end of the month and rent is usually paid at the beginning of the month. If you can time it right, you can use that time in between rent and mortgage payments as a buffer, so you aren’t paying twice. But you should be financially prepared to pay both one month of rent and your first month’s mortgage at the same time.
The transition from renting to owning can be a little foggy, especially for first-time buyers. Waiting for almost two months for the closing to be complete can make it hard to know exactly when to turn in your 30-day notice, but having patience and financial reserves can ease the tension.