When you’re purchasing the home for the first time, there will be a lot of things to consider. You’ll need to do a lot of research and find the home that really suits all of your needs. Avoiding mistakes first-time home buyers make will be something that you’ll need to think about thoroughly. Of course, first you need to know what they are, and that’s why this guide can come in handy.
Most common 5 mistakes first-time home buyers make
If you aren’t a professional real estate agent, you won’t know what to focus on when choosing the perfect new home to purchase. That is why hiring a professional realtor is a smart move. Luckily, these days there are many tips that you can learn from the internet. The best thing is to focus on the things you shouldn’t do.
So take a look at the 5 most common mistakes first-time home buyers make and do your best not to repeat them.
- Not being organized and prepared
- Buying a home that’s too expensive
- Not hiring a realtor
- Forgetting other expenses
- Looking for perfection
Mistake 1: Bad organization and preparation
Buying your first real estate require a lot of paperwork. It’s different than any purchase that you deal with so far. A lot of money is in a state, so you need to be very informed about the papers that you need to get. Assuming that you won’t be paying your new home in cash, you will have to acquire a lot of documentation to apply for the mortgage. That’s the big pile of papers right in the start. Not to mention copies of your personal documents, bank statements, tax returns, the real estate purchase contract, etc.
One missing paper can delay or ruin your chances of purchasing the home that interests you. So before you even start to look, research what type of paperwork you will need to get and how long will it take. Being clueless about this important subject is one of the biggest mistakes first-time home buyers make. Being informed can help you avoid it.
Mistake 2: Purchasing a home that’s too expensive
One of the more common mistakes first-time home buyers make is falling in love with the house that is above their price range.
Overextending your budget can have serious coincidences. The one that can cost you your new home if you fall on tough financial times.
The best advice is to focus on the monthly payment that you can actually afford. Sure, maybe you are qualified to the bigger loan, but how will that affect the quality of your life? Does it worth the stress of worrying every month can you afford the monthly payment? The fact that you can qualify for a $500.000 loan means nothing if you can’t pay off the monthly payments that come with it.
Always factor in your other obligations that don’t show on a credit report. Like scholarship for your kid, the monthly payment for your car. By adding all the monthly expenses together, you will see how much of a loan you can realistically pay off on a monthly basis. That way, you can set the budget for purchasing your new home.
Mistake 3: Not hiring a real estate agent
While you don’t need assistance for many things that you’re purchasing, there are situations that the help of the professionals is very much welcomed. Like when you are relocating. You know that you will benefit greatly from moving and storage Ontario services and that it’s the best way to move without stress. Also, when you’re buying a car. If you no nothing about it, you will ask a friend or a family friend that is a car enthusiast to come along and help you get a better deal. That’s just common sense.
The same applies when buying a home. Especially for the first time. That is why we already mentioned that hiring a professional realtor is a smart move. Not only that the local real estate agent will help you to find your new home much faster, but it can also help you with any legal issue and necessary paperwork. Sure, you have to pay the commission, but it is so worth it because you will be avoiding any possible scams. When you hire a real estate agent, you will have the guarantee that the homes that you’re be looking are legal, with “clean” papers.
You just need to be firm with your realtor. Explain exactly what you are looking for in a new home and what’s the maximum amount that you can spend. Be specific that you don’t even want to look at homes that are above your price range.
Mistake 4: Not calculating other expenses
The price of the home is the biggest number in your budget, but it isn’t the only one. Forgetting that is one of the biggest mistakes first-time home buyers make. You should always leave some wiggle room in your monthly budget for maintaining your new home. Things break, and as the homeowner, it’s up to you to fix them. While the small repairs can be cheap, others can be the huge hit to your finances.
Also, if you are purchasing the home in another city, be sure to calculate the moving expenses into your budget, at least for two months. While the moving boxes Sudbury and other packing supplies won’t be very costly, transporting you belongings all across the country will be quite pricey.
Mistake 5: Looking for perfection
Before you even start looking for a home, you should accept the fact that you will never find the home that perfectly fulfills each and every one of your criteriums. The home that has all the features that you want and that fits into your budget at the same time. It is an impossible mission, and accepting that will save you a lot of time. Yes, one of the common mistakes first-time home buyers make is to look for the dream home.
Instead, try to think outside of the lines that define your perfect home. By being flexible, and lowering your impossible standards you can end up with the affordable home that has most of the features that you need. In time, you can transform it into your dream home and make it perfect for you and your family members.