18 Secrets no one tells you about buying a house

Other loan-backers, like the Federal Housing Administration, will allow loans with only 3.5% down, but buyers have to pay mortgage insurance on those loans. They’re riskier because the buyer has less equity in the home, so buyers can expect to pay a percentage of the loan amount in mortgage insurance over the lifetime of the loan. (Or refinance the loan once they do have at least 20% equity in the home.)

… But you do need to put any new credit line plans on holdYour mortgage rate is going to depend in part on your credit score, and your credit score is going to get dinged with every new line of credit you open before buying a home. So to get the very best deal on your mortgage loan (and potentially afford more house), make sure you’re not going crazy with new credit cards right before you start shopping — and definitely don’t buy anything like a yacht or car on credit!


Every month, you’ll be paying back your mortgage loan — that much you probably figured. But of course, there’s also the interest on your loan (which under many contracts gets priority for repayment above the loan principal). And you’ll also be paying homeowners insurance, which is required for the lender to approve the loan, plus taxes, every month.

School districts definitely could be very important to buyers a few years down the road when they decide to purchase your house. And homes in neighborhoods with good schools tend to appreciate in value faster than homes in neighborhoods where the schools are just so-so. Make sure you’re considering your future as you’re shopping, which includes your future after this home.

If you have an agent who isn’t upfront with you about how payment works — or worse, one who is trying to talk you into more house than you can really afford — then it’s not a bad idea to question whether your agent is really the best fit for you. You want someone honest who will protect your interests, and that’s not too much to expect from an agent.

The inspector might identify some issues that need to be addressed, and usually this is negotiated with the seller, but to be entirely sure that you understand what will be involved and how much it will cost, it’s a good idea to hire a contractor and go over the inspection report. Some contractors offer free consultations, and most will be able to give you a ballpark figure to use as a jumping-off point for negotiation.

It costs money to close on a house, and closing costs can be picked up by the buyer, the seller, or both. This is usually outlined while negotiating the contract, but if you didn’t pay close attention to those terms, then it might sneak up on you. Clarify with your agent and mortgage broker who is responsible for closing costs and make sure you’ve got the money available if you’re the lucky winner of that responsibility.

After all that time looking for the right mortgage broker and lender, you may feel like it’s destiny, but the reality is that your lender probably doesn’t feel the same. Most lenders sell mortgage loans to a servicing company, which will be the entity collecting your checks every month for the next 30 years (unless the gets sold again, of course).

Maybe you’ve bought all of your furniture at antique stores, and it just doesn’t look right in your new mid-century modern home. Or perhaps you have several more rooms to fill than you did before. Whatever the case, be aware that you’ll have some purchases to make on the furniture front, and budget for them if you can — and definitely do not buy a bunch of furniture on credit before the loan closes, whatever you do.