Avoid These 10 Rookie Mistakes When Buying Your First Home
Are you planning to buy your home for the first time? Buying a home can be overwhelming, especially since it’s one of the most expensive investments. However, sometimes, buying a home may not be smooth sailing. Sometimes, you may experience making mistakes like other first-time homebuyers, but it doesn’t have to be that way. There are many things you can do to avoid making these mistakes.
Meanwhile, here are some of the common mistakes first-time homebuyers make that you should avoid.
1. Skipping the Pre-Approval Process
The first step you should take is to get pre-approved. If you skip getting pre-approved for a mortgage, sellers may not trust your financial capabilities, and you might not know how much property you can afford.
For instance, you may be looking for possible properties, but it gets harder when you find the one you want, and it turns out you can’t afford it.
2. Failing to Consider Additional Costs
Even if you have already been pre-approved for a mortgage, you should still consider other costs. These may include the homeowner’s insurance, fees of real estate agents, utilities, maintenance, moving costs, and other essential expenses.
So, before getting all excited about paying the monthly mortgage payment, you should think of a wider financial aspect of owning a house. Otherwise, you may encounter financial stress, which may lead to even more problems.
3. Overextending Your Budget
Getting pre-approved is good, but it doesn’t mean you should maximise the loan amount allowed. Instead, manage all your finances, and decide on the ideal loan amount you can afford. Usually working with real estate agents can significantly help you understand the right amount of property you should buy. Additionally, you can still have money for savings and emergencies.
On the other hand, failing to know the right amount you can spend on buying a property may result in overextending your budget.
4. Skipping the Home Inspection
A home inspection is essential to ensure that you’re getting the quality of the house you paid for. For instance, even if the details of the house include no hidden issues, you should still double-check to ensure that there are no pest infestations, structural problems, or outdated systems. Besides, this allows you to lessen possible issues along the way, and ensure that your future home is safe.
5. Neglecting to Research Neighbourhoods
Aside from the main property, you should also research the neighbourhood. You can easily look at online resources like crime rates, local amenities, schools, and public transportation systems. However, you can also get essential information if you talk to the locals. For instance, if you visit coffee shops or restaurants, you can talk to the owners and other local customers, and know the things you need to know around the neighbourhood.
6. Making Emotional Decisions
Buying a house isn’t the same as when you buy something online impulsively. It should be based on your financial status and logic. Even if you fell in love at first sight on a property, there are plenty more things that meet the eye. Usually, it includes the inspection, price, and overall value. If the facts say it’s worth it, then you’re one step closer to achieving the home you like while being reasonable.
7. Ignoring First-Time Buyer Assistance Programmes
Most first-time home buyers don’t know the benefits they’re entitled to. Some of these benefits include loans, tax credits, and grants. This is also why it’s best to work with real estate agents, as they’re well aware of everything for the advantage of property buyers and sellers.
On the other hand, if you don’t want to work with professionals, at least try to check with the local government on the assistance programmes for first-time property owners.
8. Not Looking for Mortgage Options
Aside from getting pre-approved, you also need to consider looking for options when looking for mortgage lenders. Compare their reviews, rates, and systems. As you know, even in lenders, some have a better system than others. Besides, they usually offer free consultations, so there’s no harm in checking as many options as possible.
9. Failing to Plan for the Future
What are your plans for the future? Aside from your financial plans, you should also think about your family when deciding to buy a house. For instance, there’s the possibility of switching jobs, relocating, and expanding your family. If you think these things are possible, you should buy a house that suits your plans. And even if you’re not exactly planning these things, at least leave room for the possibilities.
10. Underestimating the Importance of Savings
When buying a property, don’t just rely on loans. Instead, try to save money beforehand for other expenses. Besides, once you close the deals, you’ll be facing much more expenses than expected. So, for instance, if you have money in the bank that has been collecting interest, it can surely help you in the future.
Final Thoughts
Buying a property comes with challenges, and there are many ways to avoid them. By knowing the most common mistakes first-time homebuyers make, you can avoid them while buying a house. If you want to share your experience or even plan on how you’ll buy your first house, don’t hesitate to comment below!
ABOUT THE AUTHOR Aliana Baraquio is a web content writer working for Bennett Property, a family-owned company offering a full range of property services, including Sales, Leasing, and Development in Sydney’s Northwest. As a writer, she is passionate about providing good quality articles to help readers make the right choice.