Ready to purchase your first home? Hunting for your first home is an exciting, and at the same time, exhausting as well. Your aim in the end is to acquire a home you want at a price you can afford. This may seem easy, but most people make mistakes that prevent them from acquiring their first home.
Arm yourself with the knowledge to avoid the pitfalls of first-time homebuying.
Not knowing your buying capability. What the bank says you can afford and what you know you can actually afford may not be the same thing. If you still don’t have a clear budget, create a list of all your expenses, which includes rent, vehicle costs, loan payments, credit card payments, health insurance, groceries, retirement savings, and so on. Include expenses that occur during holidays. Subtract this total from your income, and you’ll know how much you can spend on your home purchase.
If you get a home that’s outside your price range, you can end up lusting after it, which can put you in a bad position of trying to stretch beyond your buying means.
Disregarding mortgage qualification. You need to know if a bank is willing to lend you money for a home purchase, especially if you have an unstable income or poor credit score. Many first-time homeowners forget to get pre-approved for a loan before home hunting, causing them to waste the seller’s time, the agent’s time, and their time as well.
Take note that you can consult mortgage firms online as well. Providers like NPBS offer the best fixed rate home loans in the Australian market today. Check out their services and see why it can benefit you today and in the long run.
Not considering extra expenses. Buying a home doesn’t just mean buying the house and lot, it includes additional expenses on top of monthly mortgage payments. Unlike when you were a renter, you’ll also be responsible for property taxes, ensuring your home against accidents/disasters, and making house repairs.
Being so choosy. Don’t be so inflexible when looking for a new home that you end up not actually buying when the market is good or buying what you can’t afford. Most homebuyers don’t want to compromise on something because of their preferences – do take note that your funds are limited. You may need to live on a busy street, accept old décor, or make some extra repairs to the home, or even forgo an extra room.
Ignoring home inspection. It can be tempting to forgo this vital step, but before you close on the sale, it’s crucial to know what kind of shape the house is in. You don’t want to waste your money on something that’ll give you a headache due to unexpected issues.
The bottom line
Perhaps one of the worst pitfalls experienced by first-time homebuyers is not consulting an agent. When seriously shopping for a home, it’s not a good idea to walk into an open house without an agent in tow. Agents are held to the ethical rule, and they need to act in both the seller and buyer’s best interests.
Buying a home entails time, effort, and stress – and that’s normal, even necessary. If you’re aware of the issues, then you’ll be in better position to avoid mistakes and buy your first home with confidence.