Ready to buy your first house? Make sure it’s good! Read on to learn more about some common mistakes that home buyers should avoid!
Buying your first home is a monumental step in life.
It’s no small matter either. With the real estate market as it is in most places, many millennials and Gen-Z are resigned to the fact that they may not be able to buy until later in life. If you are lucky enough to be able to buy, this guide is for you.
Today we’re going to talk about 5 critical mistakes you should avoid when buying your first home. It’s easy to get into the excitement of this event, but you can’t overlook certain things or the house will end up costing you a lot of unnecessary money.
1. Hasn’t researched enough
As a first-time buyer, there are most likely programs, grants, and loans that you can get where you live.
You need to do this research before looking for your home to take advantage of this. No matter whether you move in at home or only need some Real estate investment strategiesthese programs can be extremely beneficial.
It could be as simple as a low-paying program with lower interest rates. Every little bit counts when you spend so much money, as does your due diligence.
2. Debt is not paid off first
Obtaining approval for a homeowner’s loan is difficult, but it becomes much more difficult for you if you have a lot of student and loan debt. If possible, have them mostly paid off before you take out a mortgage.
Anyway, the better your credit rating, the more money you will get from a lender. Therefore, it is better for you to address your other debts first. It can be extremely daunting piling house payments on top of what you already have.
3. Small deposit
The amount of your deposit determines the terms of your mortgage, so you always want to spend as much as you can. Many potential home buyers jump straight into the house hunt, find something they like that is outside of their price range, and still choose it.
In the long run, it is better for you to spend some time saving on the down payment. They have lower monthly fees and won’t pay the bank interest for the next 30 years.
4. Don’t secure your mortgage first
Too many first-time home buyers are involved in the home buying process and are looking for the home before securing the mortgage.
To get pre-approved for a loan means you can safely search for what you can afford. You can also get the ball rolling faster if you have been pre-approved so you can beat the competition.
5. Didn’t inspect the house
Old houses in particular tend to malfunction with the stuff you can’t see. It is important to rent one professional inspector to go through and make sure everything is in good condition. You don’t want to pay for extensive repairs within one year of moving in.
Your first house can be your only house
Many home buyers see their first home as a springboard for a bigger, better home on the street, but that doesn’t necessarily have to be the case. You can make your first home your ideal home by upgrading it and changing the interior design when you need something fresh.