5 Mistakes To Avoid When Buying Your First Home

5 Mistakes To Avoid When Buying Your First Home

Home ownership means stability, financial equity in tangible property, having a place that’s “you”. You picture sitting on a cozy back porch or entertaining around your backyard grill. You hear your children laughing in the playroom or see quiet evenings around the fireplace. If you let your dreams blind you to important home-buying mistakes, though, your dream home can become a nightmare!

Avoid Homes You Can’t Afford

Top lenders, including Premium Mortgage Corp, all agree it’s important to prequalify for your home loan before speaking with a realtor. When you prequalify, you obtain a realistic assessment from your lender concerning the maximum monthly payment you can afford. This figure helps your realtor show you houses in your price range.

Don’t Get Attached without All the Facts

Emotional involvement with a specific house can blind you to its flaws. It may have beautiful mountain views, but will noise from trucks on the nearby interstate spoil your enjoyment? The home’s Craftsman styling may lead you to overlook outdated plumbing and wiring. Be realistic in your appraisal even when your emotions say “this is the place.”

Beware of Extra Costs

Mortgage payments are not the whole cost of home ownership. Before making an offer, check property taxes and homeowner’s and mortgage insurance. Are there homeowner’s association or maintenance fees? Ask your lender about closing costs. Does it still fit your budget with some extra for emergencies?

Don’t Neglect Resale Value

When you buy, consider future resale value. Does the house have “quirks” that may make it hard to sell? Is the neighborhood stable or deteriorating? How are the schools? These things impact your ability to sell your house at the right price later.

Don’t Cut Corners on the Professionals

Choose a real estate agent to help you find a home and to negotiate and close for you. Real estate agents know far more about the available market and the realities of the buying process than the average home buyer. The house is listed with the seller’s agent; you, the homebuyer, need a different one.

Get a home inspection. It may seem like needless extra expense, but your inspector is trained to find problems you might not notice. S/he can tell you about the outdated wiring, damp basement, or aging roof before you make an offer on the wrong house.

Following these guidelines can help your dreams can become reality in your new home!

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