Home ownership is a big financial commitment and there is a lot of information to take in. These 5 tips can help you avoid some of the common mistakes first time home buyers make.
Before buying a home, you should always be prepared to submit a ton of paperwork. Protecting your investment is one of the most important things when purchasing a home. Sites like https://www.cinchhomeservices.com/faq-library/-/faq/best-home-warranty-in-illinois can be of great help and provide a lot of information to help on home buying and things to keep in mind.
Table of Contents
1. Don’t buy a new car
Purchasing your first home is a big step and can be a very exciting time for you. However, it is best to avoid buying a new car before closing on your home. Having a new car payment on your credit report can drastically change your debt to income ratio and may interfere with getting your loan approved.
Be sure to research the area you are thinking of settling into long term and consider what it will cost to live there. Typically, home prices are higher in areas with more amenities such as schools and shopping. It is also important to test-drive the commute and take mass transit during commuting hours to see what it will be like. You should also know what the average home taxes are in that area too.
2. Don’t buy a home in move in ready condition
In a hot housing market, it can be tempting to jump on a house fast. However, it is best to focus on your goals in the home-buying process. The goal should be to find a property that fits your needs and lifestyle and that you can afford, regardless of what the market is doing.
Be sure to make a list of your must-haves, nice-to-haves, and deal breakers before viewing homes. This will help you to avoid compromising on something that you may regret later. It is also important to consider the location of a potential home. This includes how far it is from your workplace, children’s schools, and other places you may go on a regular basis. Then, you can determine the commute time and test drive mass transit options at various times of day.
3. Don’t buy a home with hidden repairs
Home inspections cost money, and they reveal a lot of information that can make or break a home purchase. It’s best to avoid buying a home that requires a lot of money for repairs.
If you’re a first-time buyer, the last thing you want is to find out after closing that your home needs an expensive roof repair or other costly maintenance projects. This can put a major dent in your budget and may even delay the purchase of your dream home. Homes and the major appliances in your home will get used over time. Basic wear and tear will occur and you should do what you can to protect your investment.
To prevent this, it’s important to hire an exclusive buyer agent, which will help you navigate a complicated real estate market and ensure that you don’t buy a home
with hidden repairs. A good buyer’s agent can also help you save money by finding out about fees that are not included in the sale price, such as property taxes and recording fees.
4. Don’t buy a home with a mortgage you can’t afford
If you’re not financially ready to buy a home, don’t force yourself into it. It is best to rent for a bit longer until you are in a better place with your finances.
Before you start house hunting, get preapproved for a mortgage. This will help you determine how much house you can afford and also shows sellers that you are a serious buyer. Also, try to save a down payment of 20% or more. This will allow you to avoid PMI.
Another thing to consider is the location of the house. It is important to choose a neighborhood with good schools and access to main roads. Finally, make sure the home does not have any problems like mold, asbestos, or radon. These issues can be expensive to fix.
5. Don’t buy a home you don’t love
A home is a big financial investment, and you don’t want to make one that you won’t enjoy living in. It’s best to “test drive” a neighborhood or building by visiting it at various times of day during your commuting hours and even taking mass transit.
It is also a good idea to talk to your mortgage lender and ask what amount of mortgage you will qualify for so that you can be realistic about your housing costs. This will prevent you from overextending yourself financially and sacrificing other financial goals, such as paying off debt or saving money each month. Also, try making “listening visits” to your future home to hear how noisy it will be — especially late at night and early in the morning when sound carries further.
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