Buying your first house can be quite an exciting process. Many buyers get so caught up in the excitement of moving in into their own home they end up overlooking essential aspects while buying. Fortunately, we are here to ensure that even amidst your excitement you can maintain objectivity by listing some of the costly mistakes made by first time home buyers so you can avoid them.
Not Knowing What They Can Afford
It is vital to note that there is more to owning a home than just affording the mortgage payments. Therefore while purchasing a home ensure you account for all the other expenses that are part and parcel of home ownership to confirm whether you can really afford to buy one. For instance, take into consideration your gross income and expenses such as utility and insurance bills and ongoing maintenance costs among many others. In other words, buying a home is different from affording to keep one up and running. Thereby, before you go looking for a mortgage to finance your home ensure you are well versed with the full costs of homeownership to avoid financial problems in the long run once it is under your name.
Hitting The Market Without A Financial Plan
Another common mistake that most first time home buyers make is hitting the real estate market without a financial plan. It is crucial to note that most home sellers and listing agents often sell homes on a first come first serve basis. Therefore, when you view homes without a financial plan and come across your dream home, they will not even consider you and will sell it to a ready buyer. Also looking for a home without knowing how much you can afford to pay for it means that you might end up falling in love with one only to find out that it is outside your budget or what your mortgage lender can offer you.
Consequently, if you are planning on purchasing the home using your cash, ensure it is ready, and your credit score is healthy so home sellers and listing agents can take you seriously. If you plan on buying your home using a mortgage, ensure you get a preapproval letter. Having a good finance plan or a preapproval letter not only makes you a serious buyer but also enables you to look for a home in the right price range.
Foregoing A Home Inspection
When you find your dream home, it is easy to assume that it is in perfect condition and skip the inspection process terming it as time-consuming. Unfortunately, foregoing inspection might turn out to be incredibly costly in the long run as you may end up paying up more in repairs and renovations in the long term. Don’t make this mistake. Ensure you inspect the home thoroughly for any faults. If possible, hire a professional inspector as he/she boasts the expertise to notice things that you as Average Joe fails to see. Carrying out an inspection saves you money in two ways, first, the home seller might pay for any repairs and maintenance costs or he/she can deduct these costs from the overall selling price enabling you to get a good home at a lower price. To avoid such mistakes and get access to highly skilled professional inspectors ensure you consult some First Time Home Buyer Services crown point in.
Not Shopping For Rates
Usually, when it comes to getting a mortgage, most buyers normally run to one lender; their bank. While doing so comes with its perks especially if you have been a long term client with the bank, it is wise to shop around for different lenders so you can get one who offers the best rates. Due to the many mortgage applications they get, most banks tend to charge high rates than other financial facilities. Therefore, consider at least three to four mortgage lenders and a broker as well and go for one who offers the best rates, terms, and fees.