Ready to buy your new home? That’s wonderful! Buying a home is probably the most significant investment you will make, and the last thing you want to do is make avoidable mistakes during your purchase. The truth is, the consequences can haunt you for the rest of your life (no pressure). Despite this, many people find themselves dealing with these consequences. One wrong move and their new homes quickly become a massive mountain of regret with large debts. Thankfully, these mistakes are avoidable. So, are you thinking about getting a new home? Do you want to enjoy your new purchase with peace of mind? Then you don’t want to be making these home buying mistakes.
Going above your budget
Purchasing a home above your budget is a common mistake made by many first-time buyers. It is easy to create a budget and convince yourself you will stick to it. But when you find a house that ticks all your boxes, and you start thinking, maybe it doesn’t sound too much of an extra monthly payment. And it does! It would be best if you remembered that signing those dotted lines could tie you down to a heavy financial commitment for 15 to 30 years.
Your safest option is to start searching for lower-cost or cheaper homes and work your way up. You’ll be pleasantly surprised by how many beautiful homes you can find without going above your budget.
Going heart first
One of the main reasons most people go beyond their budget is to let emotions guide their house hunt. That’s a recipe for disaster! Almost everyone will love a home that meets their fancy, but not everyone can afford them. Settling for a property simply because it excites you might lead you to debt. That home may look like one from your dreams for now, but when you start paying for it, it sure will look like a nightmare. Getting a real estate agent is one way to curtail your emotions, but stay away from the bad ones.
Getting a bad real estate agent
You probably already know how important a real estate agent is to ensure you get a good home at a great deal. Hiring the wrong agent is another mistake you want to stay clear of. Every good agent knows the ins and outs of the industry. They know what the correct value of a property is as well as the location. Plus, their objective nature will punctuate your emotions. A bad agent will want to make a deal happen as fast as possible without caring what kind of financial mess they leave you in. That’s why you should always take the time to interview several agents to find the best one for you.
Forgetting to get pre-approved first
Unless you already have a heap of money waiting to get spent, you’ll probably need financial assistance to secure your new home. Creating a budget is fine, but how will you know how much you can afford or what your lender is willing to give you? You can only know this by getting a mortgage pre-approval even before you start house hunting. This way, you can search with the assurance that you have financial backing and know your limits. Getting pre-approved gives you an upper hand over other homebuyers, as it makes you a more credible buyer to the seller. Thankfully, you don’t need to go far to get a mortgage pre-approval. Institutions like the Union State Bank in Kansas, for example, make it possible to apply for a mortgage online and assist with other financing issues concerning home buying.
Not comparing financial lenders
While it is crucial to get pre-approved first, each mortgage lender is different in its way. Some lenders require some prequalification requirements you need to meet, and you should ensure that you don’t tie your hands down until you’ve checked out other options. Consider the interest rates each lender comes with, the repayment terms, and the fees. It would help if you even considered non-financial things like customer service and the speed of the application process.
Not considering the neighborhood
It is possible to end up in a heavenly home right in the middle of hell. So, don’t forget to inspect the neighborhood before making a purchase. For example, consider things like the distance from your home to your workplace. You will also want to know the crime level of that neighborhood and the availability of things like hospitals, parks, and other social amenities, as well as how long your commute to access them will be.
