If You Value Your Financial Stability, Then You’ll Avoid These Mistakes in the Home Purchase Process
Buying a home can be downright stressful, but that doesn’t mean that you have to lose your head. Buying a home for the first time means collecting as much information as possible about the entire process. After all, the last thing that you want to do is find yourself without the information you need to make a great investment. That’s right — your first home is an investment whether you see it that way or not. The best thing that you can do is make sure that you’re actually able to navigate the process properly by avoiding the classic mistake that have captured many a first time homebuyer.
The biggest mistake that first time home buyers make is that they end up not really knowing how much house they can afford. This is going to be a different number than what your real estate agent or even the loan officer will give you. Of course they’re going to approve you for the most that they can approve you for — that’s more money in their pocket. However, you will still need to look at your budget and do your own number crunching. The last thing you want to do is get the maximum amount of house and then not be able to really do anything with it. The better approach would be to choose to actually use a loan calculator to figure out what your monthly payment is going to be. You want to make sure that you not only have room for the monthly payment, but you also want to make sure that you have room for the repairs that naturally come along with a house. You are going to be responsible for all of those repairs, which is another thing that first time home buyers don’t think about. Even with new construction homes, there are always little things that tend to creep in without us expecting them. The last thing that you want to deal with is not being prepared for these things — that’s going to be bad news from every angle you look at it.
Another mistake that first time home buyers make is that they end up getting too picky. You will never find a home in your price range that has absolutely everything you want and then some. There are always going to be times where you have to make sacrifices. You are going to have to realize that compromises have to be made in order to have the right house in a great location. You don’t want to find yourself being unable to get into a home because you are setting your standards too high. That’s why they call your first home a starter home. You can build up to something else when you’ve got a little more equity built into your home.
Try to see your home for the potential it has, not just the things that it has now. For example, if you have a house that has a nice floorplan, you can always update the fixtures later on when you have a little more money to go around. This is something that people overlook, so it bears repeating — look at your home for the long term, not just the short term.
We also have to bring up the point that a lot of first time home buyers are in the market because they’re afraid of actually missing out on the market. Folks, you should never rush into real estate just because you think the ship will sail without you. The thing about real estate is that there’s always inventory, there’s always demand, and this means that there are always houses in the market. The last thing you need to even think about doing is finding yourself plunging into a house for the sake of calling yourself a home owner. If you’re not ready for a home, then you should rent until you have a nice down payment. Sure you can qualify for fewer down payments, but this will result in a mortgage that you really can’t tolerate. It would be a lot smarter to actually make sure that you are completely ready to get a mortgage and the home that comes with it. Yes, we said it that way for a reason: once you get a mortgage, you’re going to be locked in for the long run. You can’t just turn around and change your mind when things start going south. You’re going to be locked in for the entire length of that mortgage. Selling a home takes a lot more time than people expect, which is another mistake that homeowners-to-be often make.
Yes, we’re being a little tough, but it’s really for your own good. We don’t want to see you end up jaded because of these mistakes, or make the assumption that you can’t do big things in the world of real estate. Why not get started today in the research side of things? You’ll definitely be glad that you did!