Home seeking is enjoyable, exhausting and a little bit daunting experience for first-time home buyers. But in the end of your home shopping journey, you aspire to find a home that fit to your needs at a selling price you can afford. Unfortunately, there are a lot of home buyers who commit home buying blunders that deters them from achieving their home buying goals. Therefore it is essential that you equip yourself with these tips to get the home that you want.
1. Not Identifying How Much You Can Afford
If you haven’t determined your budget yet for buying a home, you can simply start by creating a list of all your monthly expenses like vehicle or transportation costs, student loan payments, credit card payments, groceries, health insurance and so on. Also, do not forget to include your annual fees and expenses. Deduct its total from your income and you’ll know how much you can spend for your mortgage. You have to identify how much you can afford because, if you will end up finding homes that are not within your budget. And just make you long for a property you cannot afford.
2. Skipping Mortgage Qualification
Get pre-approved first for a loan before beginning home shopping so you will know how much the bank would lend you. If you will skip this step, you will be wasting time dealing with the seller, the seller’s agent and your own agent if you sign a contract and learn soon after that the bank is not willing to lend you what you the amount that you need. Be wary that even if you have get pre-approved for a mortgage, you may encounter with your loans at the last minute, if you make major purchases like buying a new car before closing the deal.
3. Not Preparing Yourself For Additional Expenses
Once you finally acquired the home that you want, you will be spending for additional expenses aside from your monthly payment. Now that you no longer rent, you will be responsible for paying property taxes, buying an insurance covering your home against disasters and making any major repairs the home needs like expensive items like a new roof or a new furnace.
4. Being Too Choosy
Naturally, first-time home buyers want to get the best home for them. They search for a home that will provide them comfort and one that fits their needs. But don’t be too inflexible when creating your home wish list because most often than not this prevent home seekers from acquiring their own home.
5. Being Overemotional and Overexcited
Doing minor upgrades and home remodeling are few of the tricks home sellers do to deceive you and play with your own emotions so they can sell their property to you at a higher price than its actual selling price. If you have a sufficient budget, find homes that full potential has yet to be attained. In addition, first-time home buyers should search for homes which they can add value to.
6. Failing To Inspect
Before signing the contract do not forget to conduct a home inspection in the home that you wish to purchase. You would not want to buy a property that will bring you a lot of repair problems and headaches. Hire a professional home inspector who can help you examine the current condition of the home. Failing to inspect a home before buying it could cost you a lot of money and pose you to potential danger (asbestos exposure or other hazardous home defects).
7. Not Choosing to Hire an Agent or Using the Seller’s Agent
Make sure that you hire an experienced real estate agent if it is your first time to purchase a home and you know that you are not equipped with home buying information. They are knowledgeable of the market and can surely help you find what you want and protect your best interest as a buyer.