What you need to know before buying a house

Owning a home is a dream for many—and for good reason. It represents stability, independence, and a sense of accomplishment. But beyond the excitement, buying a house is one of the biggest and most expensive decisions you’ll ever make. It affects your lifestyle, finances, and long-term future.

It’s completely normal to feel hopeful, excited, and even a little stressed. The key is being prepared. That’s why we’ve put together this guide on what you need to know before buying a house, with 7 practical tips to help you make informed decisions and avoid unnecessary surprises along the way.

1. Get Your Finances in Order Before Making a Move

Before falling in love with a property, the first step is getting your financial situation in check. Owning a home means taking on long-term responsibilities—repairs, maintenance, and monthly payments.

Here’s how to start:

1. Pay off high-interest debts and reduce your credit card balances to zero.
2. Create a monthly budget using a spreadsheet or finance app.
3. Identify unnecessary expenses and redirect that money toward your down payment.
4. Consider your future income and whether you can manage payments if interest rates increase.

It’s not just about affording the house today, but being able to sustain it tomorrow.

2. Evaluate the Property and Maintenance Costs

Don’t get swept away by a home’s charm without checking the details. Repairs and upgrades can be expensive if you overlook warning signs.

• Inspect both the interior and exterior of the property.
• If possible, hire a professional home inspector for a thorough evaluation.
• Ask about the age of the roof, plumbing, electrical systems, and other key components.
• Think long-term: every home requires ongoing care and maintenance.

Being proactive can save you time, stress, and money down the road.

3. Understand Your Financing Options

Once you’re ready to start your home search, find the financing method that best suits your needs:

✔ Bank Financing

Talk to your bank about how much you could borrow, the required down payment, and closing costs.

✔ Owner Financing

In some cases, property owners are open to self-financing the sale or offering rent-to-own options.

The right option depends on your income, goals, and comfort level with taking risks.

4. Be Aware of Hidden Costs

One common mistake first-time buyers make is only budgeting for the purchase price. But there’s a lot more to consider.

• Property taxes
• Homeowners insurance
• Closing costs
• Moving expenses
• Furnishing the new home
• Repairs or replacement of appliances
• Municipal fees (like garbage collection in Costa Rica)
• HOA or condo fees
• Utility setup and deposits

Include these costs in your overall budget to avoid financial strain.

5. Make a Realistic Wish List

Knowing your budget is key, but knowing what you want is just as important.

• How many bedrooms and bathrooms do you need?
• Do you prefer a standalone house, a condo, or a fixer-upper?
• What features are must-haves and what can you live without?

✨ Pro tip: A bigger house doesn’t always mean a better life. Focus on what truly matters to you—not what others expect you to want.

6. Location, Location, Location

You’ve heard it before, and it’s still true: location is everything.

As you check potential homes, consider:

• Proximity to work, schools, hospitals, parks, and shops
• Access to main roads and public transport
• Safety and crime rates in the area
• Internet availability and power reliability
• Long-term value: Will this area appreciate over the next 10 years?

Visit at different times of day, walk around, and observe the surroundings. The neighborhood’s vibe is as important as the home itself.

7. Think Like an Investor (Even if You’re Not One)

Even if you’re buying to live in the property, it’s smart to view it through an investor’s lens.

• Consider properties in growing or high-demand areas—this protects your resale value.
• Never rush. See several options before deciding.
• If space allows, you could rent out a room to generate extra income to cover mortgage payments or maintenance costs. Just make sure to research local rental rates.

Making decisions with long-term value in mind is always a good idea.

Other Important Details to Consider

Before making your final decision, take note of:

• The age of the house
• The home’s ventilation and airflow
• The seller’s reasons for moving
• External condition of the house and surroundings
• Sun exposure, street noise, and visual distractions
• Power lines, poles, or obstructions outside the property

Make a quick pros and cons list while you’re on-site so nothing slips your mind later.

Final Thoughts

The seven tips above on what you need to know before buying a house can be a great help, and guide you through the process. Being well prepared, informed, and surrounding yourself with professionals will give you peace of mind and better results.

At Luz D Sol, we’re here to guide you every step of the way. If you have questions, would like to explore options, or need personalized advice, don’t hesitate to contact us. We’d be happy to help you find your home.