Every day there are stories all over the media about mistakes and the perils first home buyers make on their property journey. Thankfully, Josh Rowe from RealAs has a list of mistakes, and how to avoid them.
Most of the first home buyers think they are ready to purchase a house as soon as they are financially ready for a mortgage. However, just because you can afford all the mortgage payments, does not mean that you can also afford to purchase, maintain and own a house. There’s much more to purchasing a home than you expect. And the most common of mistakes are listed below:
Choosing risky loans
Before deciding on a financial institution, talk to loan officers on the different types of loans. There are various loans to meet the needs and limitations of almost any person. People usually just go for a loan that seems easy to understand and end up paying much more than they could have paid otherwise. For example, choosing a 25 year mortgage plan in hopes to pay off the debt quicker might become difficult with their altering incomes and expenditures.
Getting high amounts of loan
Your home lender will determine the amount of loan according to your tax documentation and credit reports. Sometimes they might even give applicants a bigger loan than the borrowers can afford. This is where the problem starts. First home buyers might get excited about the larger loan amount and accept it. However, try to stick to your budget when buying a house so that you do not have a hard time paying at off. A larger house means more bills, higher maintenance and expensive utilities.
Skipping the home inspection
Home inspection is not a necessary step and many may even skip this part out in the excitement of buying the house. Even some sellers try to sidetrack and discourage a home inspection in fear of reducing the value of the house. Buying a house with poor electricity wiring, poor plumbing and an improper foundation or roof may lead to huge problems after purchase and you may end up becoming bankrupt trying to fix these issues. Skipping the home inspection is completely your decision and you will be responsible for whatever happens later on.
Not visiting the property a couple of times
There may be things you might not notice at first glance. And this does not include only the house itself. You also need to pay particular attention to the neighbourhood. Whether the noise and pollution levels are suitable for you, whether the neighbours are okay to live with and of course, you need to know if the house you’re buying wasn’t used for illegal purposes beforehand.
Not working with a real estate expert
You can buy a house without the help of a real estate expert. But never underestimate the importance of an expert advisor. They know what’s in the market and the worth of each property. You won’t have to worry about being ripped off and getting yourself a house you’ll always regret. A buyers advocate can guide you into buying the perfect house for your budget.
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