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 similar to whatever kind of investment, buying a house can either lead to success or failure. While most people succeed, there’s a possibility for your purchase to become a failure if your make costly mistakes. As such, you must be aware what the typical home buying mistakes are so that you won’t have to make them yourself.
1 – Buying a very 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. There have been so many instances of people buying a very expensive home and ended up giving it up because they no longer can pay for it. In other words, buy something you can afford to pay.
2 – Not minding all the other expenses.
Remember that home ownership is very much different to that of renting. 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 upgrade to become a homeowner, it comes with so much responsibility, including covering all the maintenance costs. If you don’t leave a budget for maintenance expenses, you’re bound to fail as a homeowner.
3 – Denial in hiring a realtor.
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. The truth is hiring a realtor comes with no risks because if you finally make a purchase, the one compelled to pay for the agent’s commission is the seller, not you the buyer. Therefore, you actually won’t save any money if you don’t use an agent.
4 – Undermining the importance of shopping with multiple lenders.
It’s quite obvious that rate shopping with multiple lenders will help you since it’s the only way you get to compare rates and find the best one for you, including practical 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.