Buying a house is a stressful process, especially if you’ve never done it in the past. However, be sure to avoid these common pitfalls of first-time home buyers.
When young couples see the amount for which they are approved, they often become overzealous.
Remember, just because you are approved for a certain amount does not mean that you can easily afford it along with all of your other expenses. Sit down and make a budget of all your monthly expenses and decide where the mortgage fits in. You might have to go for a smaller home right now, but you can always renovate the house or buy a second house down the road.
Not Getting Prequalified
One of the biggest disappointments is going house shopping, falling in love with your dream home and then discovering that the bank will not allow you to qualify for the mortgage. Before you even begin looking at homes, get prequalified. You will know what your budget is, and you will avoid the
heartbreak and agony of finding your dream home, only to be told that it is not within your reach.
Not Using a Real Estate Agent
Some people just want to go for it by themselves; however, this is highly inadvisable. There are so
many steps involved in buying a house from inspections to appraisals to getting a mortgage. Don’t you want to have an expert on your side, answering all of your questions? Real estate agents can also help you figure out in which school district the prospective home lies.
Not Understanding the Costs
In addition to overspending, many young couples do not understand the cost of owning a home. The home’s mortgage is far from being your sole expense. Appliances break all the time and need to be prepared. Lawns require care, whether you hire a service or have to purchase a lawn mower. When bad weather comes, you need to take proper safety measures to protect your house from the storm. As the owner of the house, you have to deal with these problems. There is no landlord to turn to.
Not Shopping for a Mortgage
Once the hassle of racing to open houses and appointments after work and on the weekends has
stopped, most people just want to go with the first mortgage that they see. However, different
mortgages have different interest rates and terms. Check with a few different banks to see which one will give you the most bang for your buck.
Coupled with the idea of rushing into purchasing a mortgage is the idea of skipping an inspection. Even if the house looks fine to the naked eye, the foundation could be crumbling or there could be termites eating away at the walls. Make sure that you have a thorough inspection before purchasing the house to avoid these types of problems.
Buying a home probably sounds overwhelming, especially after reading these tips. However, following all of these suggestions will help you to get the best deal possible!
About the author: Marissa Ortiz writes about real estate, personal finance and more. Her best work is about her experience earning a masters in finance online.