Buying your first home is an exciting time that can help give you a secure and comfortable future. However, in the thrill of the moment, you can make costly mistakes that can turn your experience into a nightmare.
To guide you through the process, we have listed below some of the common mistakes made by first time home buyers. Make sure you don’t make these mistakes too.
- Not making a thorough review of your finances
Failing to look closely into what they can afford is a very common rookie home buying mistake. Whether you intend to pay for the home upfront or get a mortgage, you have to thoroughly look into your finances, first and foremost.
The general rule of thumb is that you should be not be spending more than 29% of your income on housing, although this is not set in stone. You can probably afford more if you have no debts, or if you’re willing to cut back on other expenses, such as entertainment or recreation.
Shop around for mortgage to find the best terms for you. In addition, remember to be prepared for cash payments at closing, including the down payment, which is usually 20% of the selling price. Other closing costs to consider include the banker’s and agent’s fees, insurance premium, home inspection fees, and more.
- Getting carried away by your emotions
House hunting is very exciting, and you will no doubt find some incredible opportunities. Be careful of getting carried away and plunging into the wrong decision, though. Any property should be thoroughly examined, as well as should your finances.
Keep cool and calm while exploring various options and have in mind exactly what you are looking for. Try as much as possible to stick to your initial plans, even if you see something interesting that you hadn’t thought of before. If you must deviate from your initial plans, do your due diligence and inspect your new options thoroughly.
- Not factoring in additional expenses as a homeowner
Many first-time home buyers overlook other expenses that come with owning a home, such as property taxes and insurance. You also have to conduct routine maintenance repairs and occasional touch-ups on the house. These expenses, plus your monthly payments for the mortgage, can get overwhelming if you haven’t thought them through and planned for them properly.
- Not working with a Realtor
All the mistakes above and many others can be avoided when you work with a Realtor. An experienced real estate agent will know the market inside out and what to look for when buying a home. They can help you find the right mortgage, connect you with important services like a home inspector or a real estate lawyer, and negotiate with the seller to close the best deal. Your Realtor’s experience can help you avoid the pitfalls of home buying while taking on most of the leg work and paperwork from you.