Common Mistakes You Should Avoid in Purchasing Your First Home
Once you finally make the decision to buy a home for the first time, perhaps you’re wondering how everything starts. But worry not, because every single individual who made their first home purchase felt the same thing. As a matter of fact, you could easily get overwhelmed by it, but it’s no reason to be scared since it’s normal to feel that way for the biggest investment you’re going to make in your life.
But just like any investment, there can be two possible outcomes: success and failure. But the only reason for failure is if you make costly mistakes along the way. This is why it is important that you learn what those first-time home buying mistakes, the purpose of which is to avoid making them.
1 – Buying a pricey home.
Don’t get us wrong – you have all the right to buy the priciest home out there, assuming you can afford it. But then again, you obviously can’t buy something that you can’t afford. We can’t stress enough how many times people have surrendered their property after just a few years after realizing they actually cannot pay for it anymore. In other words, buy something you can afford to pay.
2 – Not minding all the other expenses.
Keep in mind that home ownership is very different when compared to that of renting a property. If you’ve been renting for years now, then you’re used to having to fix something that’s broken, like the door, toilet, or plumbing fixture. But once you become a homeowner, there are so many things to cover, all of which are part of your responsibility in maintaining your home. This suggests that if you don’t allot money for maintenance costs, then you will most likely fail in your responsibility as a homeowner.
3 – Deciding not to hire a real estate agent.
You probably have heard, seen, or read a lot of things online about how you can buy your first home without the need of a real estate agent. In reality, there’s no risk involved in asking for a realtor’s help because the commission they’re supposed to earn will be paid for by the seller of the house, not the buyer. In other words, there is no way for you to save money if you will not use an agent.
4 – Undermining the importance of shopping with multiple lenders.
Obviously, you want to make sure you do some rate shopping with multiple lenders before you make your decision because it helps you get the best rates and lesser closing costs. If you don’t find the time and effort in exploring other lenders, you might end up paying for more than what you’re supposed to.