Property

Five Major Mistakes to Avoid When Buying Your First Home

Just the thought of having a cozy and comfortable place to call your own is a serene feeling. There is great excitement to move in and even a day’s wait seems like a decade. However, it is important to hold onto your emotions and take a well-informed step.

Buying your very first house is a crucial decision and calls for a lot of research and planning. It is a massive financial commitment and one small mistake can turn your entire experience into an exhausting and scary one.

Image result for Buying Your First Home"

Keep reading to know some of the major mistakes that you should never commit (knowingly or unknowingly) when buying a home:

#1: Not Knowing Your Budget

Homeowners often don’t determine their budget range before stepping into the real estate market. They either rely on banks to clarify how much they can afford or forget about their other financial priorities. As a result, they waste time on exploring or investing in the properties that are beyond their spending limit, hurting their finances later down the road.

#2: Skipping the Pre-Approval Loan Process

Making an offer on your dream property is not wise until you have been pre-approved for a home loan. Every loan has its specific requirements and it is essential that the money the bank lends you matches with the offer you make for a house. Banks often reject or decrease the mortgage amount for individuals with a poor credit score or unstable income. And in the absence of a pre-approval, there can be a major financial setback in the future.

#3: Falling to Advertising Gimmicks

It is quite natural to get distracted by great deals offered by sellers or real estate companies, but you should take a moment to look at the facts closely and then go ahead with any decision. Sometimes the most beautiful houses become nightmares. So, don’t get swayed away by the outer appearance or flashy details of the property, rather get it thoroughly checked by an expert inspection officer and gauge its actual quality.

#4: Forgetting about Added or Hidden Costs

Buying a house is not as easy as it looks. It is more than paying the monthly interest rates. There are insurance costs, property taxes, homeowner’s association fees, and closing expenses. While most of the home buyers take major costs into account, they fail to think of the hidden costs that can make a home over budget. Hence, ask about these extra charges to know exactly how much the house will cost you.

#5: Trying to Buy Without an Agent

Buyers take the biggest risk when they try to buy a home directly without the help of a good real estate agent. An experienced real estate agent understands your needs and makes your home buying process smooth and hassle-free. Plus, he/she has a wide network of loan officers and lawyers to guide you and get a house mortgage pre-approval at the earliest.

 

Leah Leonard
the authorLeah Leonard