Purchasing a home for the first time can leave you in a lot of confusion. It is the biggest decision you are making, and any mistake is unaffordable. But if you have performed enough research, you’ll have a smoother home buying experience. There are some mistakes that first time home buyers usually make. To ensure that you do not commit the same mistake, read some of the common ones in this mini first time home buyers guide.
Buying a home when there’s already a debt
Purchasing a home when there is an existing debt on the buyer can be like running with weights on.
Before you plan to take out a mortgage for the new home, prepare yourself financially.
Paying off interests for a previous and new loan at once can be daunting. At the time of maintenance, you are not left with enough savings to pay the charges. It is better to be financially stable first than to regret later.
Avoid buying a home till the time you have paid all your debts. Do not leave anything from credit cards, student loans to car loans.
Not measuring all costs of buying a home
First time home buyers are usually accustomed to monthly payments that include house rent, electricity and other utilities. The homeowner is responsible for the rest of the things like house maintenance, tax, or annual house renovations.
When you become a homeowner, you’ll have to bear costs for everything mentioned above. Garbage bills, sewer, water bills or lawn care will all be your responsibility. Measure all the costs of owning a home before you settle with a deal. It is approximately 1-3% of the home purchase price that goes annually in extra expenses. Ask your home loan consultant about the costs you may bear after going for a mortgage.
Not understanding the need of a buyer’s agent.
Meeting a buyer’s agent is essential so that you have a person to rely on during the process. You’ll find a lot of stages where having an agent by your side would feel important. One of the mistakes that most first time home buyers make is that they don’t consider hiring an agent seriously.
It is crucial to realise that hiring an agent can help you make better decisions on home buying. They offer better and more professional advice than your friends and family. Like all the first time home buyers guides mention, an agent can explore all the options based on your needs and can find you a fair deal. Get in touch with an agent at the right time.
Not getting pre-qualified at first.
Many first-time homebuyers do not talk to a lender until they have found a home. Getting pre-approved for a mortgage can have many benefits. Pre-qualification can help you look for options within your budget. You can take action faster when you have found a house and have an offer. This will help you save money in the long run as it will avoid an error in your credit card report.
Talking to a home loan consultant and researching enough before making a purchase would ease your first time purchase. Make sure to avoid common mistakes.
