7 First-Time Home Buyer Mistakes You Want to Avoid | Everything you need to know:
Buying your first home can be an exciting time in your life, but it can also be stressful and full of new terms you have to learn to navigate the real estate market. If you’re a first-time home buyer, make sure you don’t make these 7 common mistakes that could end up costing you money down the road. In many cases, this could mean the difference between buying or renting that house in the suburbs that you love so much or not being able to afford it at all. To buy a house, you can check our ultimate guide.
1) Not Having a Realistic Budget
Buying a home will involve more than just mortgage payments. You will also likely have to pay for other costs such as insurance, taxes, electric and water bills, and other fees. In order to figure out if you can afford all of these additional charges, you may need to look further into your savings before buying a house. First-time home buyer mistakes are costly. A $1 million dollar mortgage is usually accompanied by $30,000 in closing costs and transaction fees.
2) Failing to Research Neighborhoods
Before you start your search for a new home, make sure you research the neighborhoods. What is the crime rate like? How close are schools and parks? Is there public transportation nearby? All of these things can affect your decision when it comes time to sign on the dotted line. Another common first-time home buyer mistake is not checking what kind of regulations apply in your neighborhood before signing on the dotted line. If you want to rent out a unit in your house, later on, this could become an issue regarding rental restrictions or how many units can be rented out in one property.
Take your time and do research, so you can avoid first-time home buyer mistakes such as picking a neighborhood that has more crime or schools that are further away. It’s also important to check if rental restrictions will apply in your area. To find the best areas in Sydney here is our ultimate guide.
3) Looking for a Home Before the Loan
Take your time choosing your first home, don’t settle for just any house, instead search for one in your price range, after all, you don’t want to worry about whether or not you can afford the house. The first step in the home-buying process is to get pre-approval for a mortgage.
Before you buy a house, make sure you can afford it. If you’re not sure what kind of mortgage is best for your financial situation, read about mortgages and get preapproved for a loan. Doing these things before looking for homes will ensure that you’re making smart home-buying decisions as opposed to impulsive ones.
4) Not Hiring Professionals
It takes a village to move into a new neighborhood. Packing and renting a van isn’t enough. When it comes to your home-buying team, you may want to make sure that you have only the best players in place before you begin the process.
The right professionals will help ensure you get a great price, avoid common home-buying mistakes, and close on time. It’s not just that they’re experts in their field; they’ll also be your biggest advocates. An attorney or real estate agent can push you out of your comfort zone if you’re worried about your purchase. The right inspector can turn up unseen problems with a home so that you aren’t surprised by them later when it’s too late. To find a professional agent click here.
5) Lacking Vision
Lots of the open houses that you visit won’t seem ready for a family yet. However, plenty of them will get better with a bit of love and care. When looking for a home, try to imagine what it will look like when you’ve moved in and after your furniture, artwork, etc. has gone inside. You will want to learn this skill because, especially when looking for your first home, you will likely end up with a house that needs lots of repairs.
Low vision will lead you down a path of fixing up every home that you see. There is nothing wrong with renovations, but they’re not a requirement and they can be very expensive. Instead, do your best to determine what your perfect home would look like and then find one that’s close enough that it won’t need extensive work before it meets those needs.
6) Not Putting Together an Action Plan Before Searching
What is right is knowing what you want before going to look for a house. But if your must-have list is long and too specific, you could end up looking for your perfect home for a long time. Additionally, be mindful that changes can still be made once you move in. You might find it wise to consider what you need instead of what you want for a change. If you’re not sure how to begin, please use our checklist!
Make sure you create an action plan before searching for your first home. This will help you make sure that you have a game plan and stay on track throughout your search. Having an action plan will also allow you to weigh your options between different locations, properties, and price points while making strategic decisions on where and when to look based on your needs, wants, and goals.
7) Ignoring the Future
You may want to think ahead if you plan on living in this house for a long time. You may decide to have kids in a few years, which will bring about a whole new set of questions. Do you know if the home is located in a good school district and if there will be enough bedrooms? Buying a home may require consideration of these factors.
Whether you’re only starting to think about buying your first home, or you’ve already done some of your own searchings, there might be some important lessons in this list of mistakes.