Buying your own house is daunting and complicated, but when you buy your first house, it can be completely overwhelming.
It’s easy for unexpected expenses to pop up or for you to forget to do one thing or another. Unfortunately, these mistakes can end up costing you a lot of time and money, so it’s better to be prepared, to avoid you making these costly mistakes.
Here is a list of the most common mistakes, so that you can avoid them before it’s too late.
Mistake #1 Buying More House Than You Can Afford
It’s easy for people to get excited when buying their first house, after all, it is a big life experience. However, this excitement usually ends up with you falling in love with a much bigger and much more expensive house than you can afford.
This is going to hurt you no matter the outcome; Either you’re going to overspend by A LOT, or you’re going to be left heartbroken because you can’t get the house of your dreams.
To avoid this, be sure that you know your budget, and only look at homes that you can afford. If you visit an estate agent, they will be able to help you out with this.
Just let them know the maximum amount of money that you are willing to spend on a house, and they will be able to provide a selection of properties that fit your budget, your needs, and your circumstances.
Mistake #2 Not Using A Mortgage Broker
It’s always best to use a mortgage broker when buying a house, especially for the first time. Luckily, you can find loads online, including https://altrua.ca/.
Mortgage brokers can usually secure a better rate from lenders than if you went to the lender directly, which can save you a lot of money.
There are even fee-free mortgage brokers, which could save you hundreds, if not thousands. If you go to an independent mortgage broker, you are sure to receive reliable and impartial advice, as they aren’t tied to any one particular lender.
Mistake #3 No Home Inspection
Because home inspections aren’t usually required by mortgage lenders, many home buyers, especially first time home buyers, avoid having one done. There are a couple of reasons that a buyer might do this.
First off, is letting your heart overrule your head – Some buyers would rather not have an inspection so that they can avoid finding out any massive problems that might put them off buying a home that they’ve fallen in love with.
Of course, this is a huge mistake, as, for all you know, there could be serious structural damage, that could stop you from being able to live there. Another big reason is the money;
Home inspections aren’t free, and if you want a thorough one, it won’t be cheap. Some buyers would rather risk any problems, instead of having to pay out extra money, for potentially nothing.
Mistake #4 Cutting Corners On Repairs
In a perfect world, you should avoid any homes that have any major structural damage, and stick to cosmetic damage only properties, but sometimes your heart gets the better of you, and you fall for a property that you should really avoid.
If you’ve fallen in love with a home that’s a bit of a fixer-upper, you need to be sure that you give it the professional help that it needs.
Some people try to fix damage to their property themselves or hire a cheap handyman to bodge the job, but this won’t do you or your new home any favors.
Instead, you need to hire professional contractors, with good references. This won’t be cheap, but that’s the price that you have to pay when you buy a fixer-upper property.
Mistake #5 Using Your Entire Budget
If you have a sensible head on your shoulders, you should have a budget for how much money you are willing to spend on your home.
Unfortunately, some people think that this entire budget can go on the house itself, and forget about (or even ignore) any additional expenses that pop up throughout the buying process.
This means that some people could spend all of their money on the house of their dreams, and they have no money left over to cover any important repairs, renovations, or other expenses.
This could mean that you may not even be able to move into your home, as the repairs need to be completed first.
Mistake #6 Buying All New Furniture
Buying your first house is an exciting time, so it’s understandable that you would want to deck out your new pad with all new furniture and decorate the place from top to bottom.
Often, this makes people feel more settled in their new home, as they’ve put their own mark on the property, and given it some of their personality, and this way everything is new.
However, this could be a big mistake. Although your new couch, pots and pans, and kitchen table may not seem like a lot of money separately, when you add it all together, it is a lot of money, and frankly, it’s money that you can’t afford to waste right after buying a new home.
Sure, you can buy yourself a new couch to start with, but add things slowly and now and then, rather than getting everything all at once.
You could also decorate one room a month, instead of trying to get the whole house derated in your weekend off work. This will help you to be much more financially stable and will allow you to relax a little more.
Mistake #7 Buying A New Car
It may seem like a crazy idea to you, but some people buy a new car right after buying a new house. This is for much the same reason as replacing the pots and pans and the kitchen table; You feel more comfortable if everything you have is new.
However, the last thing that you want is to have a car loan hanging over your head, as well as your new mortgage. You will need to make repairs on your home, buy new furniture, and get decorating done before you can even think about making any more major purchases.
You also need to take into account the fact that your mortgage repayments are going to be a lot more a month than your rent was, and that you may have additional costs each month that comes from owning your own home.
Instead of buying a car immediately, set up a savings account for one, and out a little money into it every couple of weeks. This way, in time, you can buy your car upfront, and won’t be adding to your debt.
Visit https://www.usatoday.com for more advice on saving for a new car.
What Mistakes Have You Made?
Buying your own house is a big decision, and certainly isn’t one that should be taken lightly. There is a lot to take into consideration before you even start looking for properties to buy.
How much are you able to spend? How much are you willing to spend? Where do you want to live? And then when you’ve decided these things, you need to work out what it is that you want to get out of your home. How many bedrooms and bathrooms do you need? Does it need to be near a school?
Do you want to be close to or within a town, or would you prefer to be out in the countryside?If you’re unsure of this, click here. It’s only once you’ve definitively answered all of these questions that you will be prepared to buy your own home. Hopefully, this list will help you out when you buy yours.