I'd like to reflect a bit about the process of purchasing a house. This took more time than we expected and we went through some interesting hurdles that we think we were able to address in a timely manner. I'll keep things brief but would be absolutely happy to expand for anyone who gets in touch. Don't forget that I'm not an expert in this subject and this is based on my own experience!

Location

This is clearly one of the key elements in the home purchase process. It's easier to identify neighborhoods with ideal characteristics: those without a lot of turnover, not too many rental properties around, access to parks, walkability considerations (e.g., downtown or to other third spaces), closeness to grocery stores, and good schools (if relevant at your life stage). Additional tip: Check future development plans, and flood zone maps. These factors significantly impact long-term property values.

Pricing, comps, etc

Understand the history of the house before purchasing. A home that hasn't been flipped and has been owned by a single family (who cared for it) is likely to be in better condition than a rental, Airbnb, or similar property. Do your due diligence to understand the house you're putting an offer on. There are services that compile some of this information in single databases (e.g., homes.com). Those services are worth checking. You can google previous owners (use "" for explicit searchers) and mentions of the property online. Pro tip: Look at recent sales of comparable homes within a 0.5-mile radius. Homes should generally be priced within 5-10% of recent comps unless there are significant differences in condition or features.

Old photos

Websites like realtor.com, Google Street View, or aerial photos from your county would be useful to understand the history of your property. Take some time to reflect on what has happened to the yard and roof over time, maybe the pool (if any). Don't be shy about talking to neighbors as well if you notice something interesting about the house either during those analyses or your visits. Additional research: Check local permit records to see what work has been done and whether it was properly permitted. Unpermitted work can become your financial responsibility.

Feel the house

Walk through the house as many times as needed and understand that you're committing to a long-term purchase, probably the most expensive of your life. See if you feel comfortable, if the lighting is nice and comfortable, if the yard feels warm to you, if the house is simple enough to understand, and if you flow well in the space. Some homes are complicated, with too many ad hoc changes that influence how you feel in them. Walk around, invite friends and family. See how they feel—try to notice where their eyes go and try to understand afterward why some locations fixed their attention. Make a mental plan of the space and detect how your network can help you work things out so that your space is comfortable, not only for you but for them when they visit. Important: Visit the house at different times of day and days of the week.

Taxes and HOA

I wouldn't recommend paying HOA fees (but this totally depends on the person and the benefits). Taxes are key as they add to the monthly cost of owning the house. They almost always go up (with exceptions...), so try to always account for the cost of taxes when doing your math on whether or not you can afford a home. Key fact: Property taxes can increase 3-10% annually in some areas. Note that some HOAs provide valuable services like exterior maintenance, landscaping, and amenities that can actually save money long-term.

Mortgages

Amortization means that you will likely be paying an insane amount for your house if you were to wait the full 30 years of a standard mortgage duration. Funny enough, there's not a single way to purchase a property. Some people consider paying off their house a priority. Others don't see any issues with paying the full amount of the house plus interest. Below, I leave a simple mortgage calculator to estimate the total cost of a loan in accordance with the cost of the home, your down payment, interest rate, and loan term. Note that the monthly payment doesn't include escrow (e.g., taxes, insurance) as it's based exclusively on the cost of the house.

Realtor

When we purchased our home, we felt that most of the research responsibility was on our end. Learning which inspectors we wanted, how to get quotes on particular aspects that needed to be fixed, among other things, were largely tasks we handled ourselves. Hopefully you won't have to do all that and your realtor will work better, but if you like to have control and understand things, knowing those details is probably a good way to start the process of homeownership. Tip: Interview multiple realtors and ask for references. A good realtor should provide you with a network of trusted professionals (inspectors, contractors, lenders) and guide you through negotiations.

Closing

Wire transfers or cashier's checks are generally the two more standard ways to finalize the payment process for your house. From my experience, the rudimentary wire transfer system was stressful and slow—very complicated and prone to mistakes at every step. So, given that one already knows a rough estimate of closing costs, using a cashier's check would probably be the best way to pay for this transaction. I would request one under the final estimated down payment. To get to the final number, I would recommend either getting cash (friends and family could help if you transfer to them) or transferring money to the title company (either wire or normal transfer). I would absolutely avoid the wire transfer thing... Important security note: Always verify wiring instructions by communicating directly with the title company.

Discount points

If you're planning on keeping your mortgage for a long time, or if you have extra money (or seller credits) for the down payment, consider purchasing discount points. These points will reduce the percentage of interest that you pay on the house—a smart move in the long term. Below, I put together a quick calculator that can help you make that decision (TBD).

Snowball payments

Hopefully you'll have some cash sitting around at some point during the duration of your loan. Imagine that at some point you'd like to use some of that to pay toward the principal on your loan. Some lenders don't give you the option of paying, say, $50k toward the principal, as it strongly affects their calculations on their profit for a given loan (among other things). Be careful when choosing a lender and ask whether snowball payments are allowed. Contributing to the principal at once drastically reduces the monthly costs, affects the amortization schedule, and allows you to pay your loan off much faster than expected. Some lenders will allow you to make two or three large payments, and that's still a win 😄. Pro tip: Even an extra $100-200 per month toward principal can save tens of thousands in interest over the life of the loan.

Rate float-down

For some mortgages, rate float-downs are an option. You generally have to ask if the mortgage you're signing has this as an option. Float-downs allow you to get a lower rate than the one you signed for only if rates go down a given percentage set by the bank. Generally there are one or two float-downs available, but this is highly variable. Note: Float-downs typically cost 0.25-0.5% of the loan amount and may only be available during construction or before closing. From what I know, rate usually needs to drop by at least 0.25-0.5% to qualify.

Buy something simple

A home shouldn't be that complicated. Nothing super fancy with automation everywhere, pipes running through many places of the house, electricity disorganized throughout the home, etc. The point being, the simpler the house, the easier it is to repair and ensure it keeps being maintained appropriately. Buy something simple and you can implement the changes you want.

Simple is better...

• Fewer systems mean fewer things that can break
• Repairs are more straightforward and less expensive
• You can understand how your house works
• Future maintenance is predictable
• You have control over upgrades and improvements

Red flags for complicated homes:

• Smart home systems integrated into basic functions (lighting, HVAC, security)
• Complex plumbing layouts with multiple zones
• Electrical panels with unlabeled circuits
• Custom-built features that require specialized parts
• Too many "luxury" systems that you don't understand or need

Things to look for:

• Straightforward floor plans
• Basic, reliable HVAC systems
• Standard electrical and plumbing layouts
• Quality materials over fancy gadgets
• Room for you to add your own improvements over time

Things I would never do

But I'm not an expert...

Waiving contingencies, specially in hot markets
Overlooking resale value
Buying at the top of my budget (montly?)
Skipping the final walkthrough
Not budgeting (and overestimating) for immediate repairs/improvements

Just for fun

Consider closing at the end of the month so you can save some money on interests. Some credit unions offer better rates than banks and they also have more flexibility underwriting. Try to be present during appraisal. If appraisal comes for more than what you're paying for, say nothing! If the opposite...be careful with your purchase...