The thought of buying your first home can be exhilarating and exciting. In the end, the hope is to be in the house of your dreams at a price you can afford, am I right? Unfortunately, many first-time homebuyers make mistakes that prevent them from ever getting to that final destination. Protect yourself from making those mistakes by avoiding five of the most costly mistakes that could put a hold on that sold sign.
- Not knowing How Much You Can or Can’t Afford
Going into your home search with a firm grasp on your price range is crucial. Looking at homes that are way out of your comfort zone in price can lead to stretching beyond your means to get it.
Before starting your house hunt, compile a complete budget based on your financial situation. Make a list of your monthly expenses and don’t forget those expenses that occur once a year.
- Skipping Mortgage Qualification
If you have an idea in mind of what you can or can’t afford, this may not match up with what a lender can offer you. Getting pre-approved is simple and having that letter in hand before making an offer can, in some cases, seal the deal.
- Failing to Consider Additional Expense
Once you’re a homeowner, there tend to be additional expenses other than just your monthly payment. Unlike renting, you’ll be responsible for paying property taxes, insuring your home against disasters, and paying for any maintenance your home may need. By giving yourself some extra wiggle room each month, you’ll be prepared for any other situations as they arise.
- Being Swept Away
Now that you’ve got your pre-approval letter in hand and a budget firmly in place, don’t let a home that is well staged sway you into paying a higher price than it truly is worth. Often minor upgrades and cosmetic touches are made that don’t warrant higher prices. When you’re on a budget, look for homes whose full potential has yet to be realized.
- Forgetting to Think about the Future
You never know what the future will hold, so when making one of the largest purchases of your life, make sure you pay close attention to all the information that is available. The more questions you ask the better! Here are some questions you don’t want to forget to bring up:
- Are there any development plans in the works for your neighborhood?
- Is your street likely to become a major street or a popular rush-hour shortcut?
- Will a highway be built in your backyard in the foreseeable future?
- What are the zoning laws in your area?
- If there is a lot of undeveloped land, what is likely to be built there?
- Have home values in the neighborhood been declining?
Having a professional with tons of experience with you every step of the way can make a world of difference. Don’t hesitate to give me a call today and we can get you started on the path to homeownership.
To read more home buyer mistakes go to http://bit.ly/1quKcSwThis material is provided for information and educational purposes only. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness.