The excitement of buying a first home can lead some people to make foolish decisions. Some people rush into the process without having enough information or making wrong assumptions about their capacity to buy. When you purchase a home, you want to make sure you are not taking on obligations that will become a burden to you.
Some people get caught up admiring cute cottages, Craftsman bungalows, or Mediterranean-style houses. They may have their heart set on four thousand square foot floor plans, four-car garages, and backyard pools before realizing the implications of such an investment. There is more to buying a house that picking out one with excellent curb appeal and hardwood floors.
Buying a home involves a lot of hidden fees. Without adequate awareness of the process, many homebuyers either become discouraged or proceed to take on unfavorable liabilities. If you do not have experience investing in real estate, read on to find out what mistakes first-time buyers should avoid:=
Mistake #1: Not doing homework
Purchasing your first house involves more than just paying for the amount on the price tag. What you have to know when you buy is that you not only pay for the house, you need to pay for mortgage fees, closing costs, realtor’s commission, and a slew of other fees. There is a wealth of information available online on these costs. You can even simulate your entire purchase process from viewing property prices, taking virtual tours, estimating costs with online mortgage calculators. Collect quotes and compare prices so you can make an informed decision.
Mistake #2: Buying beyond your budget
When you purchase a home, you have to consider it with your present capacity, not with your future potential to earn. Your house should be enough for what you have today, and when you have more money later, that is when you should consider purchasing a bigger home. Live within your means and don’t spend money that you do not yet have.
Mistake #3: Underestimating monthly expenses
No matter what house you want to buy, you have to think about the monthly expenses that come with maintaining it. Factor in your mortgage, your utility bills, and phone and cable bills. Don’t forget to consider your property taxes and insurance policies. You can pro-rate these items, so you know. If you don’t have enough excess income after deducting all these expenses to live comfortably, then perhaps consider buying a cheaper house or putting off the purchase until you can generate more income.
Mistake #4: Not conducting a thorough home inspection
Your mortgage lender or a third party inspector will conduct a review of the property you intend to purchase. Before you finalize a purchase, you should check that the home is in livable condition and that there are no serious safety concerns or quality issues. When you purchase something of substantial value, you want to make sure you are getting your money’s worth.
Mistake #5: Not working with an experienced real estate agent
First-time home buyers should work with a real estate agent. They can not only bring you several options of houses to choose from, but they can also help you negotiate prices to get you a better deal. A common mistake that many first-time buyers make is not bargaining enough. Most homes for sale have a floor price well below the advertised rate, and an agent can help you get closer to that and save you money in the process.
Conclusion
There are multiple steps in the journey to buying your first home. Take the time to do your research and understand the ins and outs of the process. You want your hard-earned money to go to the right investment. You also want to make sure that you don’t enter into a purchase that you will later regret.
Are you looking for houses for sale in Davison, MI? We can help you find the right place to call home. Get in touch with us today and see how our real estate experts can help you!