Photograph Courtesy Of Nick Bastian
Buying a home is a complicated process, especially if you are purchasing your first home. Because of the duration of the process and the numerous steps involved, it is easy for first time homebuyers to make simple mistakes that could cost them a lot of money unexpectedly or derail the home buying process for them entirely. Overlooking these facts about the home buying process could cost you the home that you want, so use these tips to avoid the common mistakes made when buying a first home.
Neglecting To Include All Of The Costs
Many people make the mistake of neglecting to include all of the costs of homeownership when calculating the amount that they will need to afford their new home. There are dozens of costs associated with buying a home other than the cost of the mortgage. You must also consider the closing costs for buying the home, the cost of home maintenance and yard upkeep, money to cover the cost of repairs and renovations, and the amount you must pay for utilities and property taxes. If the mortgage payment alone is going to stretch you to the limit financially, then that home is not the home for you and your current financial situation.
Searching For Homes Before You’re Qualified For A Loan
It is also a mistake to go searching for suitable homes before you have been qualified for a loan. People that make this mistake often find that the home they have spent so much time and energy searching for is unaffordable for you according to the loan company. Then you will be dealing with disappointment as you scale back your plans to find a home that you can get a loan for. Take the time to talk to a lender about how much house you can realistically afford and what the monthly payment breakdown will be before setting out to find the home of your dreams.
Failing To Look At The Big Picture
Another common mistake is failing to look at the big picture when choosing a home. It is important to remember that you will be living in this home for a number of years if you want to recoup your investment in the home, so the home will need to fit your needs over the entire time period. If you are young and preparing to start a family, the number of bedrooms in the home, the school district, and local amenities for children should be taken into consideration. You will want to look at the entire neighborhood and carefully consider future developments in the area and the resale value of your home. Anything that is wrong or deteriorating on the home, like a moldy basement or creaky floorboards, should also be factored into your decision because you will probably be the one repairing them in the future.