Are you thinking about buying your first home? Well, the entire process might be exciting and scary at the same time. You are simply looking for a home at the right price that meets all your preferences, and no matter how long it takes, you might be lucky enough to find one. However, when you are doing it, you should beware of the following mistakes.
1. No Idea Of Your Budget
Before buying a home, you need to create a budget. Here you should list your expenses besides rent that you have to deal with every month. Now, with that figure in mind, you can look at homes within the right price range without overstretching yourself to meet your monthly expenses. If you find that most of the homes you are looking it are not within your budget, you can work towards reducing your monthly expenses or look for houses at a lower budget.
2. Not Doing Mortgage Qualification
The amount you can afford for your new home and what the bank might be willing to lend you can be varying considerably. For instance, if you have an unstable income or very poor credit rating, the bank might be unwilling to lend you a lot of money. Therefore, before placing an offer on any home, you need to get a pre-approval at the bank. It would be time-wasting to make an offer for a home only to find that the bank can’t offer you what you need and the only way to get financing is through a mortgage with very unfavorable rates.
3. Failure To Consider Additional Expenses
Besides your monthly payment on the house, there are some additional expenses that you should be aware of. Besides being a homeowner, you are susceptible to property taxes, insurance payments, repairs and also maintenance costs. Therefore, you should account for all these additional expenses to make sure your property value doesn’t go down if you plan to sell your home later. If you concentrate only on the purchasing price, you might stretch your budget considerably when you have to pay for these monthly payments after the first month of being a home owner.
4. Being Very Picky When Choosing A House
Everyone has a picture of the home they hope to buy. Therefore, when you are looking for a dream home, don’t be too picky. Of course, some things might not be up to your expectations, but there is always room to compromise. If you have limited funds to get exactly what you are looking for, you should be flexible enough to find something that serves the same purpose regardless of whether or not it is on your wish-list.
A rule of thumb is that you should not compromise on the important things. If you are planning to have kids in the future, don’t settle for a smaller house just because your budget will not allow it. You can always continue searching until you find a home that meets exactly what you are looking for. Therefore, if you have to compromise, make sure that it is for smaller things that can always be added later.
5. Failure To Inspect
Just like you would when buying a new car, you need to inspect the house you are looking to purchase to make sure it is in a good working condition. Certainly, you don’t want to close to deal only to find out that the house has mold or termite infestation that might cost you a lot of money. Therefore, hiring a professional inspector to look through everything in the house to make sure it is as good as promised.