Homeownership is something that many individuals strive for in their lifetime. Having real estate that you can call your own is certainly rewarding. In fact, buying a home is one of the biggest financial investments you’ll ever make. With that in mind, it is imperative that you don’t make this decision too quickly. Many people make the mistake of investing in a property based on the aesthetics or how a particular property makes them feel. Allowing emotion to drive your decision might get you one of the best looking houses on the block, but that doesn’t necessarily mean it will be the most financially sound investment.
Below, are a few mistakes that first time home buyers make that you should avoid at all costs.
1. Don’t Choose the First House You See
It can be pretty exciting to go house hunting. Looking at various properties and seeing what they have to offer can most certainly peak your buying interests, however, you should never settle on the first property you see. While the first property may have what you’re looking for, looking around a little further is best. You can see what other properties are available and make a decision based on varying factors as opposed to an impulsive decision.
2. Don’t Bite Off More than You Can Chew (Financially)
It is important to assess all the associated costs of homeownership. Investing in a property based solely on the mortgage amount you got approved for is not idealistic. As you might imagine, the mortgage is not going to be the only expense you have to pay for. You will need proper homeowner’s insurance, you’ll be responsible for paying taxes on the property, and you will also have to factor in the cost of living expenses such as your utility bills. Therefore, have a general idea of how much you can afford to pay on a mortgage while still paying for all the other factors.
Money Saving Tip: When factoring in your utility costs such as how much it might cost you to heat the home, contacting the energy supplier to get an estimate is the best option. However, if you feel the estimated costs are too high, asking other energy suppliers in the area is suggested. As governments in the US and Canada have now approved deregulation (here are more details on deregulation) for energy providers, you now have the power to choose who you receive your energy from. This could possibly save you more money.
3. Don’t Buy a Home Without an Inspection
Never, never, never, purchase a property that you have not first had properly inspected. What may look good to the untrained eye might actually be a disaster to the professionals. There could be underlying issues on the property that end up costing you a lot of cash later on. Having a home inspector do a complete inspection of the house will assure that it is up to par or at the very least, make you aware of any out of pocket expenses you will occur. This may be the determining factor as to whether or not you’re comfortable purchasing the home as is, whether you want the seller to make repairs, or if you’re going to lower your offer to include the cost of repairs.
4. Don’t Buy the Home Without Considering Other Lifestyle Factors
Last, but certainly not least on the list of things you should avoid when buying a home for the first time is purchasing a home without considering other lifestyle factors. For instance, buying a home because it’s really nice and cheap but is located miles away from your job will incur additional commuting costs. Just as purchasing a home in an area where there is high crime or poor school systems is not ideal as you would have to pay for them to attend school elsewhere and could run the risk of having your property broken into or vandalized. Assess all of your lifestyle factors as it pertains to your living environment prior to making an offer or purchase.
Remember, once you sign on the dotted line, you’re responsible for the home for the next 30 years or so. As long as you remember that the home is an investment and make informed financial decisions, you should have no problem in finding a home that suits your needs. Aside from the financial pitfalls to avoid listed above take your time and enjoy yourself in finding your new humble abode.
Article Submitted By Community Writer