Buying your first home is a big ‘adult’ move. If you’re feeling nervous, rest assured you’re not alone – navigating the real estate industry can be confusing. In fact 40% of Americans said that buying a home is the most stressful event in modern life, according to a study by Homes.com. 

There’s no one-size-fits-all roadmap for buying a home, and searching for good tips online can feel like plunging down a rabbit hole. That’s why we went straight to the experts – Lemonade homeowners who have been around the block – for some crucial home shopping lessons.

Before you hit ‘create’ on your home furnishing Pinterest board, here’s your crucial first time home buyer’s checklist.

1.  Stay on budget 

Picture this: You’ve worked out the home price you can afford, but your agent convinces you to see a property slightly over budget. As soon as you step in, you fall in love. Cue the heartbreak. 

To avoid expending any more energy buying a home than you need to, always shop for a price under budget, and use a mortgage calculator to work out your monthly payments. 

Check with the bank first to figure out how much they’ll lend you before shopping for homes. Why? There may be tons of additional expenses in the mix, like homeowners insurance and home repairs (more on this later). 

2. Keep an open-mind while house hunting

Anyone who’s been on the hunt for the perfect property with a limited budget will tell you the same: Don’t get your hopes up for a house in perfect condition. In fact, many properties might appear tired and rundown from the outside.

For example, If you spot a property online with a great location but unattractive photos, don’t pass it up immediately — it’s always worth a visit to see if there’s potential.

And don’t underestimate the power of minor renovations. Even if you see a home that looks like it’s past its heyday, remember that it could be upgraded with a few minor remodellings here and there. Something as simple as removing an old carpet and replacing it with modern wooden floors can really transform a place.

3. Research your location

So you think you found the perfect home, and can picture yourself sitting in its living room with a glass of red. But before you let your imagination run wild, find out everything you can about the location.

To avoid any unexpected surprises, make sure to look out for:

1. 1. Future development projects
2. 2. Public transportation
3. 3. Schools
4. 4. Proximity to amenities
5. 5. Property taxes

Pro tip: Drop in on the area at different hours of the day — especially at night.

_{4. Get an agent}

If you’ve mastered Zillow and Redfin and have already spotted a few gems online, you might be asking yourself, “why get an agent?” 

Good question. Even though you may be able to find a property without one, agents can do a lot more than just find your new digs. They’ll also help you with technical aspects of buying a property, including:

What should you look for in an agent? Natalie E., a Lemonade condo owner and real estate agent from New York, advises: 

“Find someone who has experience in the area — not necessarily the exact neighborhood or building, just someone who understands the local market. Also, make sure it’s someone you feel you can trust.”

If you’re having trouble finding a good agent, hit up a few open houses and meet potential agents there. 

_{5. Talk to at least three lenders}  

To get the best deal on your lender, make sure to apply to multiple mortgage lenders. Since they compete with each other, having more than one offer will give you some leverage.

^{6. Move fast}

The real estate business ain’t for the faint-hearted, and deliberating a purchase for too long can work against you.

That’s not to say you should be impulsive, but if your gut is telling you it’s the right place for you, and you’ve done enough research on location, be prepared to make an offer.

You should also be sure to get your paperwork sorted out before you start looking for homes, since a mortgage pre-approval and other financial requirements can take a while to put together.

_{7. Keep in mind extra costs} 

Not to be the bearer of bad news, but becoming a homeowner means added expenses.  So when buying your home, you’ll also need to consider extra costs like property taxes, homeowners insurance, hazard insurance, repairs, and maintenance. 

Costs can increase with taxes as well. The average price of property taxes can be as high as $4,813 in New York County, according to SmartAsset.

Ask your agent to help crunch some numbers so you’re properly prepared for these seemingly hidden costs. Shop around for homeowners insurance and compare quotes, and use this homeownership calculator to work out how much extra you’ll be paying. 

Don’t get discouraged

Shopping around for a home is kind of like dating – fraught with highs and lows. But even if you do encounter disappointments along the way, there will always be another house around the corner. Try not to get too emotionally invested in any one property, especially before the deal is done. Even if your offer has been accepted, always wait until the ink is dry before uncorking the champagne! 

Happy hunting!