First-time homebuyers may not have the burden of a house to sell in difficult times, but they can still make a lot of mistakes during the buying process.
Leaving Financial Planning for Later
There are a lot of online calculators and tools to help you determine how much you can truly afford before you start the buying process. Here’s a great mortgage calculator by The Nest. However, when you start getting serious about buying a home, you need to know exactly how much you can put into a house and hopefully, get pre-approved for a mortgage.
DIY Home Buying
With all the classified listings out there, along with websites like Craigslist and apps like Zillow, you may start looking at homes ages before you ever contact an agent. But wait, do you even need an agent? Can’t you just figure this out on your own? Well, maybe, but buying a home is an incredibly complicated process, and it helps to have a real estate agent to coach you through the ins and outs of financing, scheduling inspections and making an offer.
Falling in Love Too Soon
Many first-time buyers become enamored with one particular property and suddenly it seems like they’ve just got to have it. But, this is a bad idea where home buying is concerned. Not only can falling in love with a home make a difference with the real estate agent — they’ll make you pay for it — but you can be setting yourself up for heartbreak if it isn’t in your budget or another buyer makes a better offer.
Renovating Too Soon
Even if you don’t let yourself fall in love before you can afford it, you may come into the home with a very specific work-in-progress vision for your home. Maybe you want to remodel the kitchen right away to make it the airy, open-plan cooking space you’ve always dreamed of. Maybe you want to add a conservatory or tack on an orangery.
The increase in value to the home will practically make these renovations pay for themselves, right? Well, it may not have the effect you were hoping for. In this unpredictable market, you never know if making upgrades will reap the rewards you’ve been hoping for or be a thousand pound mistake in the making.
Forgetting That There’s More Than the Mortgage Payment
First-time homebuyers may know what they’re getting into as far as the monthly mortgage payment is concerned, but there is so much more to homeownership than your mortgage. Suddenly, you’ve got additional taxes, home insurance, higher utility bills and maintenance to contend with. These things can overwhelm those used to renting.
Be sure to estimate the cost of living, as well as the mortgage payment before you close on the deal. There are a lot of ins and outs to buying your first house and you’ll always run into things you didn’t expect or plan for. Fortunately, if you avoid making these five common mistakes, you are well on your way to finding the home of your dreams at a price you can afford.Read more