Welcome home my dear friend.
In fact for majority og people, purchasing a home is one of the biggest decisions they will ever consider.
There are many things one has to consider:
What neighborhood should you choose?
How much house do you want? And most importantly, what does your house need to make it feel like home?
Answering these questions can seem like a daunting task.
Please understand that the financial uncertainties related to home-buying only add to the overwhelmed feeling.
Fortunately, you can avoid these critical mistakes to make sure you are not overextending yourself financially.
Mistake No. 1: Outspending your budget
Before beginning the home-buying process, it is very crucial to know how much house you can truly afford.
The general rule of thumb is to allocate 30 percent of your overall budget to home-related expenses.
Those expenses go beyond your mortgage payment to include insurance, taxes, maintenance and utilities.
That 30 percent target should also consider how much you plan to use for a down payment and closing costs.
Before beginning the home-buying procedure, it is highly crucial to create a thorough budget that considers all recurring and one-time costs related to homeownership.
Your budget can help you pinpoint how much house you can truly purchase and which neighborhoods to target.
It may also prevent you from overbuying and becoming cash-strapped later.
Mistake No. 2: Overlooking mortgage options:
While you are working on your budget, you should also seek out financing preapproval if you plan to take out a loan for your purchase.
A loan officer can school you on the total amount of a loan you will qualify for, how much you will pay in interest over the life of the loan, and the estimated amount of your monthly mortgage payments.
Mistake No. 3: Working with the wrong agent
Your real estate agent should be working with your best interests in mind.
Please always go for a qualified agent who has worked extensively with buyers.
Your agent can help you find a house that fits your physical and financial needs.
If an agent is consistently pushing you to max out or even go over your intended purchase price, it could be time to consider a different agent.
Mistake No. 4: Choosing wants over needs
Sure, that extra living space or oversized garage is nice to have, but is it necessary?
It is very easy to get swept up in the home-buying process and forget that what you want might cost much more than what you need. Before you start looking, make two lists: one titled “must have” and the other titled “nice to have.” Refer to these lists frequently as you look for your future home.
Mistake No. 5: Skipping the due diligence
The key principle in home-buying is always get it in writing.
An offer to purchase a home is a legally binding contract, and that contract should be as detailed as possible before you sign it.
Maybe you love the appliances and want them to stay, or you are hoping to keep the window coverings.
If the seller agrees to these things, do not rely on a verbal agreement or a handshake.
Instead, have your requests written into the contract.
Mistake No. 6: Forgoing the home inspection
Waiving a home inspection can also be very tempting, especially since the average inspection costs between $300 and $500.
However, inspections frequently turn up potential problems home buyers cannot see, such as faulty wiring or termites. Spending that money now could prevent large expenses later.
Thank you very much for your time.