Buying your first home may be the biggest purchase you will make. Buyers, especially first-time ones normally make avoidable mistakes when buying their first homes. These mistakes result in problems that may be hard to rectify. Acknowledging your mistakes and trying to change them may be your first step. Most buyers don’t take their time to figure out what they want and what places fit their housing needs. If you are not consulting with anyone, you may be missing important information. You need to know about development in the area where you are buying your house. This will help you decide whether it is worth moving yourself to other areas. Research about all the areas you are going to. But you should consider your budget and price range so you can prepare for any extra prices. Loans, both personal loans and unsecured loans are great when it comes down to needing extra money. Not necessarily for the actual process of buying because most lenders and brokers won’t offer that. But loans are great for that extra boost for improvements and DIY after you’ve bought your home.
A common mistake among first-time buyers is that they fail to get pre-approval and pre-qualification of a mortgage. Both are done early in the process even before you start looking for a house. Pre-qualification is an informal conversation involving the buyer and the lender while a preapproval is formal and involves checking of your financial background, credits and benefits to make sure you are qualified for a mortgage.
Some buyers tend to spend more money than they had budgeted for. When researching for a perfect home, we create a budget for an affordable house that is easy to pay off. Buyers tend to fall in love with houses that are slightly above the budgeted amount. You pay for your new home and end up being broke and living from paycheck to paycheck. Ignoring your budget will have you dipping into your savings account in order to buy a bigger house with a bigger price range.
Rushing the process is a common mistake made by buyers. Buyers feel pressure to find a home and settle down as fast as they can. Most employed people don’t have time to take several leaves and trips year. When the right home does not appear immediately, we start experiencing stress and pressure. This can cause you to settle for a home even when it is less than what you expected.
Rent / Mortgage
Buyers often compare rent to the mortgage payment and assume they can afford to live in the new lifestyle. Most forget to add in factors like more electrical like a water heater and a cooling system may be expensive to maintain. Costs like cleaning, yard, insurance and transport are some of the basic necessities that will den your income because you had no savings.
In this digital age, most people rely on online information for almost everything. When you want to buy a new home buy you have to work. They prefer checking for listings through online searching. The real house may not appear like the pictures they have put online. Photos can be largely exaggerated and photoshopped, they do may exaggerate the size of your house and you end up with a house that looks nothing like its pictures.
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