Buying a home can be daunting, and even more, if it’s your first time. However, a little knowledge and preparation would ensure you avoid these mistakes first-timers make. Instead of making the same mistake, your siblings, parents, or friends made when they bought their first house. A little homework would save you the hurdles. Here are five mistakes first time home buyers often make and how to avoid them.
- Spending More Than Your Capability
One of the mistakes first-time homebuyers often make is hunting for a house, without determining how much they can afford. Along the process, they fell in love with a home that is above their means but found it hard letting go. To avoid this trap, use the Bank of America affordability calculator to know if a house is a perfect fit for your finance. You need to know your financial strength and how much you can afford before the hunting process begin.
- Neglecting The Extra Cost Of Homeownership
Buying a home is not where the battle ends, but most first-time homebuyers are ignorant of this. Once the key to the house is yours, you will discover that more expenses are waiting at the corner. You will need to take care of property taxes, homeowners’ insurance and also, regular maintenance. In some places, there could be additional fees like a homeowner’s association or something similar. Before finally closing the deal, calculate the extra expenses, and ensure you’re financially buoyant to handle it.
- Making A Small Down Payment
One of the regrets most homeowners have is making a down payment that is too small. You see them making comments such as, “I should have waited until I have a more significant down payment.” The benefits of making a large down payment are enormous, which is why you mustn’t make this first-time homebuyer’s mistake. A substantial down payment entails smaller mortgage, thereby giving you more affordability monthly house payments. The aim is to make sure your monthly payment is comfortable to pay.
- Miscalculating Repairs And Renovation Cost
Another mistake first-time homebuyers make is in terms of miscalculation, especially regarding home renovation. They get an estimate from one contractor and boom; they build their whole life around it. When they finally get the house and ready to renovate, they discover that the cost is almost double the estimate. To avoid this kind of situation, you must get ratings from more than one contractor. You can also seek recommendations from friends and family.
- Skipping Home Inspection
A home inspection is yet another expense, which is why most first-time homebuyers might feel safe forgoing. Perhaps they have walked around the home, and everything seems to be in perfect order. Well, skipping the home inspection is a dangerous mistake and one you shouldn’t make. You might feel like you’re saving by forgoing inspection; in most cases, you aren’t. Through professional home inspection, you can discover more about the house, especially the faults and repairs. This information would no doubt be an edge during negotiation.
For more information or any questions regarding first-time home buying mistakes, contact Chang Legal today.