Buying a home is not an easy process as many of us may think. No matter if you’re a young first home buyer, or a mature one! If unprepared, some common but avoidable mistakes can be easily committed.
Here are some simple and seemingly obvious tips every potential (first-time) home buyer should think of and consider before embarking on the buying process.
- Keep your budget in mind
Most people when purchasing their first home do not set a budget and it is heart breaking when you find the perfect home and your pocket won’t allow you too. Before you start searching for the perfect home, analyze all your finances and set a budget in which you can purchase a home. List down all your monthly expenses like; bills, groceries, credit card payments, student loans, annual insurance payments and holidays. This way you will not waste your time looking at things that you can’t afford and will buy the perfect home within your budget.
- Choosing a risky loan
When choosing a mortgage plan or taking a home loan, talk to a mortgage broker or a loan officer. Select a plan that suits your current financial situation. Some people choose mortgage plans or loans that are then later on very expensive for them to pay. So choose the plan very wisely to avoid ending up regretting your purchase.
When choosing a mortgage plan or taking a home loan, you first need to educate yourself in order to avoid any wrong decisions. Here is a A Comprehensive Guide To Mortgage Choices that may help you make a wise decision.
- Skipping Home Inspection
Most people skip the home inspection, as it is not a requirement. Hence, many sellers tend to rush and discourage this. Home inspection may not be a requirement but it is definitely a necessity. There are many things that need to be changed or fixed. So before closing sale, make sure that all the wiring and plumbing are in order, to avoid being stuck in making extra repairs and spending money that could have been saved.
- Making emotional decisions
As the house is the first big purchase ever, people tend to get emotional and make decisions that are not in their best interest. Some people are swept away and buy houses that may not be a good investment. So before purchasing a home, consult a realtor and if it isn’t something that will give you a push up in the property ladder, then walk away. Find a house that has potential in it for the future market. Find a house that will have a good return rate and buy it.
- Additional expenses
Many people when financing their budget tend to ignore or underestimate the additional expenses that come with buying a house. This might shake up your financial situation a bit. So in order to avoid this, when planning the budget keep some of these additional expenses in mind:
- Inspection reports
- Maintenance charges
- Property taxes
- Moving costs
- Stamp duty
- Home insurance
- Council rates
- Relying on the other people
As it is your first house, try to be more proactive and search for houses yourself. Hire yourself an agent and don’t rely on the seller’s. When you have your own agent and have done some homework yourself, you will exactly know what to buy at what price. This saves a lot of money.
Try to be as realistic as possible with your finances and avoid any emotional decisions. It may take some time to find the perfect house but the wait will be worth it.
