When you dream of the good life, living in a house that you own is probably one of those things you think about often. If this is true, then you are not alone, and owning a house is commonly included in the list of future goals for most individuals. If you are purchasing a house for the first time, there are some important things that you should avoid. First time home buyers often make the same mistakes and knowing the most common ones will help you to avoid them.
1. Impulse Buying
Impulse buys are a big no-no when it comes to purchasing a home. You are dealing with hundreds of thousands of your hard-earned dollars so thinking twice, thrice, or even more is definitely the way to go. Do not be wooed with wonderful sales pitches and do not decide immediately just because a house looks nice and has everything that you want. Even if the house is affordable, there are tons of things to consider like the neighborhood, the distance to your work, the sturdiness of the foundation, and more. You have to survey many homes to find the perfect one for you.
2. Not Getting Professional Help
It is not smart to close the deal by yourself or to go through this process without the help of professionals who are experts. Among the professionals you need are:
Getting your own real estate broker in addition to the seller’s agent is advisable. Your own realtor can provide a more truthful assessment of the property. The seller’s agent will prioritize in closing the deal while getting your own realtor will give you a more reliable opinion.
A Loan Officer or Mortgage Broker
A loan officer or mortgage broker can help you choose the best type of loan for your particular need. When it comes to buying a home, there are tons of different loan types that you can choose. Choosing on your own, without help from the experts, increases the chances of getting a loan that is unsuitable for your particular situation and may be hard for you to handle in the long run.
A Home Inspector
Many first time buyers are so overwhelmed with the beauty of a particular property that they tend to forget that some problems cannot be seen by the naked eye. Home inspectors are there to help you see some problems that may render a house unworthy of your investment. Termites, structural problems, and faulty electrical wiring are just some things that can be hidden at first glance and may need a trained eye to pinpoint.
3. Not Considering Additional Costs
When you are buying a new house, you have to remember that you will have to pay for the mortgage, taxes and home maintenance for years to come. You have to consider more than the upfront cost of the house. You also need to consider additional and future expenses. Even if you can afford a big house, can your future income cover the house maintenance as well? Real estate taxes vary from place to place, and they can pose as a big financial burden.
It is understandable to get excited when purchasing your dream house, but you should remember that it does not come cheap. You worked hard for years to get to this point where you can actually afford to own the place you (and your family) will live.
Be wise and shop around. Be keen in observing a house’s flaws as well as its advantages. Let the purchase of your first home remain the fulfilment of your dream and not turn into something you regret because you made the same mistakes as other first time buyers have.
Are you a first time home-buyer? How will you avoid these common pitfalls?
Dominique Brown is the author of yourfinancessimplified.