You are trading the world of buying apartments and condos for one of the biggest financial commitments of your life – your first home. You have researched form the internet, scoped the neighborhood, found your dream open plan kitchen, custom bedroom and saved for your down payment.
However, as the process unfolds you quickly find yourself confused and overwhelmed – and soon enough your idyllic dream for a first homes turns into a burdensome nightmare.
This scenario could have been avoided had you been aware of these common mistakes and how you can avoid them:
1. Doing It on Your Own
So maybe you have decided to save on time and money by looking for and buying a home yourself.
However, there are some things that you simply need the help of a professional with, and home buying is certainly one of them. Real estate agents have the know-how and will provide you with valuable information about a particular neighborhood, such as average utility rates, social amenities and security.
Beyond helping you while you navigate the twists and turns during the searching process, a real estate will also provide you with valuable resources at a flat rate that end up saving you energy, time and money in the long run.
In addition to seeking referrals, you should do your own research into the agent online. You can learn more about a potential agent through a Google search – allowing you to make a decision on whether they could be a fit or not.
2. Avoiding Budget Talks before Shopping
Discussing personal finances can be an uncomfortable activity for a lot of people – however, it is important to have realistic understanding of where you financially are before looking for your first home.
It is important noting that buying a home requires a serious work ethic, so make sure you have prepared yourself for future costs and you also have an honest view of where you are financially before committing.
Beyond being disappointed by finding the perfect home that you cannot afford, you might also run into woes down the line if you cannot afford the house when all the monthly bills start coming in.
3. Expecting your Dream Home
A lush private garden in the backyard. A fully fitted gym house. An expansive infinity swimming pool. In a perfect world, you could have all this in your inaugural home.
However, chances are that you won’t- and as your search continues, you may want to compromise on those must-haves that you thought were deal breakers. First-time home buyers need to understand that their first home is not going to be perfect.
it is necessary to talk to your agent about your preferred amenities, such as how many bedrooms you want among other preferences. It is also important to attend open weeks to expand your definitions of your home.
4. Opening a Credit Line before the Sale is Final
Hold off on that new furniture set until you have actually moved in. Why? Because most lenders are going to check your debt load before closing, and if you are on the hook for a massive last-minute purchase, it could “kill a deal”.
Most loans are approved based on a specific debt-to-income ratio and minimum credit score. So keep everything status quo. Wait until after closing to open new credit accounts or charge furniture, appliances, or tools to your existing credit cards. Do not about changing your job yet. Pay your bills on time and keep your money tight.
5. Being Emotional Rather Than Visionary
It is likely that you will find an apartment you could buy, simply fall in love with it and decide that you want that home and only that home. This can result in bad decisions. While buyers cannot afford to be overly critical, it is important to consider the long-term usability of a home.
Some homeowners will throw down some serious cash to have professionals come and stage their homes with the intent of having you fall in love with their interior design. Keep in mind, this may be done to distract you from identifying some flaws like the safety of the neighborhood or a less-than-desirable location.
Approach each home with a level head and an open mind, and you should be able to strike a balance between affordability and ingenuity.
Check if the layout of the home works well for your needs, how much your family is likely to grow, the neighborhood before making the final decision. The last thing you want to do is buy a home and find out in one year that it was a bad decision
If you are considering, buying your first home, contact Villa Care Limited – we can help you determine how much home you can afford, help with pre-approvals and ensure you are not falling prey to some of the common mistakes made by first time home buyers.