Don’t Make Any Mistakes When Buying Your First Home
Taking the steps to own a home can be both exciting and scary at the same time. Maybe you’re a college grad that’s ready to leave the dorm and room-mate lifestyle or maybe you’re a career driven individual whose finally built up the financial security and you’re ready to start investing in real estate. Whatever the case is, stepping into the real estate world is unexplored and possibly financially dangerous terrain for many first-time home buyers. But don’t worry, we have some tips to help you avoid all that.
None of us start out as experts when it comes to buying our first homes. We tend to make the mistakes that are usually right under our noses.
Most of us want to own that mansion with the marble floors and hand carved stair cases, but we need to remember what we can afford. The best thing to is to stray away from looking at those fancy palaces in the first place. Only look at properties that you can afford. This method will help you not lust after those expensive houses, which would otherwise make you spend more than you originally planned.
A lot of new home-owners go into investing in real estate knowing they can afford the monthly mortgage payment, but what many of them forget is how much they spend on themselves and other expenses. Owning a home has those additional expenses we never had to pay when we were renting. As a homeowner, property taxes, home insurance, maintenance, repairs, electric, water, trash, and depending on the area, additional Homeowners Association fees and let’s not forget the mortgage on-top of all that. That’s just the typical house payments, now you have to remember how much you spend on yourself. Your phone service, gas, car insurance, car payments, groceries, clothes, entertainment and more add up. So before you jump into buying a home, know what you can spend, considering all the additional costs.
Many of us jump into the dream of owning a home without knowing how much the bank thinks we are worth. Even if you make enough knowing you can make all the necessary payments, the bank may not lend you enough for that house you found with the white picket fence. Know your worth before your search.
Once you’ve been pre-approved, it is important to maintain it. That means don’t do anything extra that could effect your credit score. Loans fall through on first-time home buyers all the time because they do something as simple as financing a car purchase. This could end up costing you thousands of the dollars and lose the contract on the house.
Once your serious about buying a home. It is important to have someone with the expertise to help you with all the real estate lingo. Real Estate Agents are trained to study and understand the financial status of the real estate market. An agent can help you find what is still on the market, schedule you tours before you buy, and provide you with real estate financial advice. Real Estate agents are also obligated to practice ethical rules that are both beneficial for the seller and the buyer parties.
Before you close on the sale of any home, make sure you get a certified home inspector to use that keen eye to really see what you’re buying. You should know the exact shape of your house before your sign that 15 or 30 year mortgage. Many first time home buyers step into a seemingly beautiful home, buy it with out an inspection and later found out things like a gas leak in the water heater, mold in the walls, and the floors are rotting. Spend that extra couple of hundred of dollars to avoid buying something that could cost you tens of thousands in repairs.
It may be impossible to predict the future, so maybe it’d be better to go dig for some facts. The house isn’t the only thing that you invest in when you sign that contract, the area or neighborhood are important things to consider, because they can affect the future value of your home. Research future development plans, zoning laws, and the value of the neighboring homes. It is also important to research for prime things that majority home buyers would be interested in, such as good school districts, low crime rates, parks and tourist attractions.
Being a first time home buyer can be stressful and it is not without risk, but at the end of all of it and through following the above important steps. You will have found yourself the perfect place to call your own at a price you can afford. Now get out there and find your new home with confidence.
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