Buying the first home comes with huge responsibilities some of which involves taking big decisions. This can be both scary as it is exciting. It is very easy to get carried over in the emotions of home shopping and make many wrong decisions that could leave you with filled with guilt even years later.
If this is your first venture as a homebuyer or it has been many years since you had dabbed your hands in the field of real estate, then knowledge is power. Therefore, in this article, we are going to discuss the common mistakes which people make while buying homes for the first time.
- Not being able to decide on a budget: Without knowing how much budget you could allow for a house, you waste both time and energyby looking at houses that you cannot afford yet, or by visiting homes that are below your budget.For many first-time buyers, the goal should be to plan to buy a house and get a loan with a comfortable monthly payment along with it that is 50% lower than his monthly income Sometimes, it is a good idea to start with a low budget.
- Looking for a house before a loan: Many first-time buyers make the mistake of zeroing down homes before ever meeting the financial institutions for a home loan. This decision might hit you hard if a home has a very tight inventory, or you select homes that you can’t afford.
- Buying a house outside your budget: It is human nature to fall in fall in love with luxurious homes that might be outside your budget, but stretching yourself can lead to regret and worse later. It can put you at higher risk of high interest and EMI and if you face tough times financially, it can lead to the losing of your home.
- Not checking the Credit Scores: Banks will checkyour credit reports before sanctioning a loan and if the reports contains errors, you might get be offered an interest rate that is higher than it actually should bd. That is why it is a wise decision to make sure your credit report is accurate.
- Draining your savings to build a house: Most of the first time house owners have a tendency to spend all or most of their savings on the down payment and closing costs. Keeping nothing in your hand for bad weather days is one of the biggest mistakes first-time homebuyers make.
- Not looking for the best loan option: Do not delay in buying a home as you do not have enough arrangement for a down payment. There are plenty of loan programmes and some of them are government aided as well. Therefore, look through as many loan options as you can before you zero down on the final choice.
- Not looking for a good neighbourhood: It is extremely important that you look for a good neighbourhood before you take the decision of investing the money. Selecting the right neighbourhood is very much critical for your family.
Avoid these common mistakes before you buy your dream home.