Home buying can be the most expensive decision of your life and undoubtedly, brings a lot of stress too. According to a survey, home buying is the top concern for people living in a rented house. Even NerdWallet has found through its report that 75% of the Americans consider buying a home as their foremost priority.
The largest share of home-buyers is constituted by the millennials at 36%. Out of which 65% are first-time buyers who haven’t had direct experience with the market beforehand. Their lack of knowledge and experience in the home-buying process can lead them to make a few mistakes. Even the smallest error can bring about colossal damage to your financial position so you need to avoid the following slipups.
Withholding Information from the Advisor
There are a number of reasons which can cause the buyer to filter information with their trusted advisor which can either be their attorney or real estate agent. This can either be because they fear how they’ll be perceived or don’t trust their advisor enough. Sometimes, the buyers think that all the information isn’t important enough for the broker or agent to know.
Your advisor is always representing your best interests so do not keep information from them. They might have a multitude of experience in the field and would know how to handle any kind of situation but to do this, they must be equipped with information. Be it luxury real estate agents, powerful lawyers, or local brokers, they are entitled to getting complete information from your side.
Miscalculating Your Affordability
You are wasting your time without knowing how much you can afford in the first place. Just because the lenders are agreeing to finance you a certain amount of money doesn’t imply that you can spend this much money on buying a home. The goal of a first-time home buyer should always be to get a loan with a comfortable monthly payment so that the stress doesn’t overwhelm them.
There are numerous homes for sale in Georgia and other parts of the country which might be a bit small but are affordable. It is better to compromise on house space than to let your sanity be at risk. A better idea is to use an online mortgage affordability calculator which will give you a complete check of what you can afford and what is out of your range.
Ignoring the Additional Costs
If you think that the only expense which you are going to incur is the monthly mortgage fee than you definitely need to do a lot of research on the home buying process. There are a number of additional expenses involved during the mortgage application which include legal fees, home inspection charges, appraisal, title insurance etc.
Even when you are done with the mortgage payments, there are closing costs which aren’t any less. In short, you must keep in mind that you are going to spend a minimum of 5% of the purchasing price more on the complete purchase of the house. There are ways to get exemptions and reductions and your mortgage broker can guide you in this. Don’t forget any additional expenses you will incur once you own the home like homeowners insurance and a home warranty plan.
Forgetting About Home Inspection
Irrespective of how perfect you believe the house is, never skip a thorough inspection of the house. In fact, you must check the property even before making an offer so that you know that you are not offering more than what the property is actually worth. You’ll not be allowed a professional home inspection prior to making an offer but you can go for a visual inspection to be alert of the red flags.
Once you’re sure that there are no cracks in the foundation or odd odors, you can quote an offer and hire professional home inspection services. Whether it is an old house or a newly constructed one, never miss the inspection as it can detect even the minutest issues in it. You would definitely not want to move into a house which has termites or other bugs in it and regret your decision.
While there are numerous other mistakes which one can make as they look for homes for sale in Bella Vista SA or any other place, we have only highlighted the most pressing issues. When you are investing your life savings, you must stay vigilant enough not to cause yourself a significant loss.
When you are looking for a nice home for yourself, do not forget to check out the best cities to retire in 2019. When you are done with your professional years, you would want to settle down in a place which is affordable and can provide with all the necessary facilities. Never forget your retirement years as you buy a home and make yourself free from all kinds of stress.