Buying a house is a huge step; you have worked very hard to get there. To make sure you get the best home, you must think of every detail. The aim is to end up with the best house at an affordable price. Without proper considerations, you might mess up on the biggest purchase of your life.
All it takes is a very small mistake in the house-hunting process. But if you have decided it’s time to stop paying a crazy rental fee, all you need is a little research to avoid spoiling the purchase. Here are some of the common mistakes to avoid:
Foregoing the Budget
Going over budget is one of the biggest mistakes and the easiest one to make. Once you have a budget, strive as much as possible to stick to it unless it’s unavoidable. Complications arise when you fall in love with a particular house; it easily confuses you. You start imagining all the good things it will offer you and your family and picture your lives in the house. That makes you forget your initial budget and start considering getting more loans.
There is nothing bad with getting loans but stick to your budget if you can’t afford it. Many other houses may be equally good for you, if not better; you need to keep looking. Avoid the temptation and continue house hunting, and you will find the best property within your budget.
Not Considering Long-Term
Unless you are looking to buy a starter home, you should think of longevity. It has to meet all your long and short terms needs. If it’s a family home, seek everyone’s suggestions and thoughts on an ideal home and base your wish list on that. The house has to be comfortable for all the family members. You might be house-hunting when single, but you have dreams of having kids and starting a family after a few years.
Consider such thoughts in the process to ensure that you are buying a house that will serve you for many years to come. Consider the wish list versus the must-haves; don’t compromise on the must-haves. They are necessary for the long-term effect, and knowing what you want will also speed up the whole process.
House-Hunting without a Mortgage Pre-Approval
That is the same as going shopping without your wallet. Consult a reliable mortgage lender and get a pre-approval letter that will help you budget for your dream home. Without it, you will be wasting the seller’s and your time going from house to house without a mortgage plan. That is because you might sign a contract to close the sale and later discover that the bank cannot give you the money you need.
What the bank thinks you can afford and what you can afford are two separate things. To ensure you make a safe investment, get the pre-approval before you hit the streets or start online searching. It gives you an idea of the monthly payments and down payment and also shows the seller you are ready to make the purchase.
Another rookie mistake is ignoring flaws with the hope of fixing them later. If you have a strict budget, do yourself a favor and only go for properties with the highest potential. Flaws should be minimal, and once you spot them, address them immediately with the agents and figure out a way forward. If you can oversee the necessary renovations, move to the next available house. If you ignore such obvious issues, they might end up costing you a lot in repairs or compromise the house’s integrity and value.
Evaluate your resources, budget, and how badly you want to move before buying a house that needs some work. It’s also important that you don’t take too long to decide. Dragging your feet might cost you a house you could have worked on and move in.
Not Inspecting the House
Under no condition are you to purchase a home without physical inspection by you or someone you trust. First, you won’t know if there are any structural damages or if you got what you bargained for. A professional inspector would even be better; they can highlight all the flaws and potential risks. You will know what you can live without and what you cannot before you close the deal.
You can even go further and study the neighborhood to determine how long your commute will be and if all the amenities and resources are available. Once you are convinced that you want to raise your family there, you can begin the formalization process.
Don’t be too desperate to find a house; you might end up getting less than what you wanted. It’s an emotional process, but you should downplay your emotions and base your decisions on serious considerations. Have a vision of what home you would like; it will make things a lot easier.