We all have the dream of saving for our dream home and having a place to call our own. The problem is that it is such a big decision and makes such a great impact on your life that it needs careful planning and consideration. These are the most common mistakes made when purchasing a home:
There are a million reasons you can come up with to buy a home as soon as you see the sale sign on the front lawn. But the truth is, rushing into a purchase before you’re ready could cost you big time in the long run. Here are a few things to consider:
If you’re new to a city, give yourself some time to enjoy the surrounding areas to decide which part of town you want to stay in long term.
If you’re not sure how long you’ll be living in that city, hold off purchasing a home until you know you’ll be there for the future .
If you are entering a fresh relationship give it time to grow as things change you may not be happy forever.
Not Saving Enough!
Buying a home takes a huge investment worth tens of thousands of dollars just in the down payment. It would be fantastic to pay 100% cash but most of us don't have that luxury. It is ideal to have at least 10% to 20% of your homes value as your down payment. On top of that you should consider:
Creating a savings for emergencies. Owning a home means you can't call the landlord to repair your stove or fix your dryer. Think of what could happen if you are not prepared to fix things on your own.
Remember to consider all the hidden fees and closing costs when buying a home you may want more cash on hand to cover those fees so your down payment goes mainly towards your home and not closing costs and realtor fees.
Buying More Than You Need!
We all want nice big homes that can hold house guests and pets but realistically do you need 6 bedrooms and 4 bathrooms for a family of 4? Only buy the amount of home your family needs, the more you buy the longer you will be in debt. Consider this:
What space does your family need to be comfortable for the next few decades? Are you having more kids? Do you want more pets?
Discuss what you and your spouse want for the future and what types of space you require.
Ask your friends and family who have been through the home buying procedure previously. They may have some tips for you.
Not Asking For Advice!
Many of us believe we can do anything and everything on our own without asking for help. This is true with some stuff but in the world of home buying it is important to know exactly what your getting into. Asking a real estate agent questions will be beneficial in your venture because this is what they are paid to do. An agent can tell you:
What all the fancy terms and contracts mean for your future and what it is going to cost you.
How much the costs will be and whether your home is a smart investment or a money pit. Agents know the ins and outs of the homes they sell so don't be afraid to ask about every tiny detail.
An agent can help you find the exact type of home you want for the price you can afford.