The decision to finally buy your first home has finally come, but you’re confused as to how to start the process. But you really don’t have to worry because every person who experienced buying their first home felt exactly the same. As a matter of fact, you could easily get overwhelmed by it, but it’s no reason to be scared since it’s normal to feel that way for the biggest investment you’re going to make in your life.
But similar to whatever kind of investment, buying a house can either lead to success or failure. While most people succeed, there’s a possibility for your purchase to become a failure if your make costly mistakes. This is why it is important that you learn what those first-time home buying mistakes, the purpose of which is to avoid making them.
1 – Buying a pricey home.
Don’t get us wrong – you have all the right to buy the priciest home out there, assuming you can afford it. But then again, if it is too much for you to pay, then there’s no sense in getting it. We can’t stress enough how many times people have surrendered their property after just a few years after realizing they actually cannot pay for it anymore. Simply put, pay for what you can afford.
2 – Not minding all the other expenses.
Keep in mind that home ownership is very different when compared to that of renting a property. If you’ve been renting for years now, then you’re used to having to fix something that’s broken, like the door, toilet, or plumbing fixture. But once you upgrade to become a homeowner, it comes with so much responsibility, including covering all the maintenance costs. If you don’t leave a budget for maintenance expenses, you’re bound to fail as a homeowner.
3 – Deciding not to hire a real estate agent.
You probably have heard, seen, or read a lot of things online about how you can buy your first home without the need of a real estate agent. But the thing is you actually don’t lose anything if you simply seek an agent’s help because the seller is the one compelled to pay for their commission. In other words, there is no way for you to save money if you will not use an agent.
4 – Not exploring multiple lenders.
Finally, rate shopping with several lenders is important because you get to explore the best rates, including closing costs. The inability to explore options could mean having to settle for a higher rate and expensive closing costs.