If it’s your first time buying a home, congratulations! This is one of the most important decisions you’ll ever make in life. Well, there may be others down the line, but this is a huge one. It’s an exciting experience that is filled with endless opportunities. However, buying a home is a minefield that requires one to tread carefully. It’s important to do extensive research on the various channels you can use to safely buy your first home. In this article, we are going to illustrate what to avoid during your home buying process. Here are 10 common mistakes every first-time homeowner should avoid.
1. Not Shopping Around For The Best Deals
This is one common mistake that first time home buyers make. Before deciding on a particular property, do your research, conduct online surveys, and check out if you can find a better deal than the first one. You’ll always get one. Remember, even the minute of a percentage can make all the difference. There are thousands of realtors out there, both on-site and online, all have different offers on the table, however, pick wisely.
2. Not Considering The Additional Fees
Whether buying cash or with a mortgage plan, it’s important to consider those hidden fees. If we were to consider the monthly mortgage payment plan, for instance, ensure that you calculate the cost of applying for the mortgage and the closing costs. At this time, it’s important to work closely with your mortgage broker.
3. Going It Alone
The home buying process is tricky, especially if it’s your first time. It may be wise to look for someone with extensive knowledge of properties. This is the reason why you need a credible realtor to help you in deciphering and scrutinizing those papers. Additionally, you’ll find a lot of help online in relation to the home buying process.
4. Buying More Than You Can Afford
It’s easier to commit yourself more especially after looking at different enticing homes. However, down the line, it will be catastrophic if your financial situation changes for the worst latter on. You may end up losing your homes as a result. It’s important to factor in your financial stability against a monthly payment plan provided. Just because you qualify for more doesn’t mean you can afford to pay the monthly installments. It’s important to also consider your other monthly obligations.
5. Lack Of Patience And Rushing The Process
The intricate and complex part of buying a home requires one to go easy and slow. This is especially so when dealing with a mortgage. It’s important that as a first-time home buyer, you consider planning further ahead of the purchase. You need to have a timeline, of course, but just make sure you have enough time to do your research, choose a realtor, compare property, choose a lender, and so on and so forth.
6. Fixating Over Petty Matters
It’s important that the house that you decide on meets your needs. There’s more to home buying than the overall appearances. First and foremost, you need to consider security. How safe is the neighborhood? Does it have a good security system available on the market? Secondly, it’s important to consider the transportation systems and the road networks. You also need to factor in the proximity of social amenities. How far are the hospitals, schools, religious institutions, malls, and so on and so forth? Demographics are a crucial consideration. In addition to this, does the house have room for improvements and renovations? Does the home need a new gas, electric or water connection? These are some of the very first things to consider before you get to the pettier factors.
7. Emotional Decisions
When buying property, sometimes it’s easy to get carried away into making an emotional decision. To many, this often occurs after the frustrations of not finding the ideal home in time. Additionally, one can get emotionally attached to a particular property, making it easier for them to make an irrational decision. Remember, this is a major milestone in life, which means that it is crucial to stick to a plan and a budget. As earlier mentioned, it’s one of the most expensive investments you’ll ever make in life, so don’t let emotions get the best of you.
8. Falling Into Scam Traps
One major pitfall that most first-time home buyers fall into is failing to seek professional help. There are so many scams associated with home buying. To make it a smoother ride, consider working with a licensed professional realtor. Some common real estate scams you’ll want to watch out for may include:
- “I will sell your home myself”
- Buying a home that doesn’t exist
- Transferring funds to a fraudster
- Hackers stealing your down payment
- Duplicated listings
- Title fraud
- Fake Escrow Service Request
As you can see, there’s a lot to look out for in regards to scams. You, therefore, need to be on the lookout for such.
9. Not Negotiating Home Buyer Rebates
Also known as commission rebates, is a rebate that adds up to 1% of the sale price. This is a rebate that is coughed up by the buyer agent, deducted from their commission. This is a rebate that is found in most U.S states, not all of them. You may, therefore, need to first and foremost check if your state allows for home buyer rebates before you go requesting for one. Especially for properties worth millions of dollars, one percent of the buying price can be a lot of money. It is worth asking for, so don’t let it go by, it’s yours for the asking.
10. Foregoing A Zoning Check
Most first time home buyers also make the huge mistake of failing to do zoning checks. Before the deal is closed, ensure that the property is safe from the risk of being claimed by the governments, authorities for public development plans. Zoning may also be important in establishing if a particular area is free and safe from flooding and other catastrophic phenomenal occurrences. It’s also important to find out what is permitted and what is not around the home.
You cannot negate the fact that home buying comes with a lot of decision making. The above mistakes can leave you with regrets. It’s therefore important to learn the tricks of avoiding such. With the above pointers, you can move from a first-time buyer to a homeowner.
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