3 Mistakes Made By First-Time Homebuyers
Just about everyone wants to step out of a rental and into a mortgage at some point in time or another. With the interest rates lower than normal and the housing prices lower than they have been in recent years, it only makes sense that people are starting to buy homes. Buying a home is one of the biggest purchases you can make, but there are plenty of things you can do that can complicate the process. Being a first-time homebuyer, you want to make sure you don't make one of the costly mistakes below.
Ignoring your budget.
While everyone loves to shop for a new home, you still have to make sure you are doing everything you should to make a smart decision on which home to buy. Many people want all of the extras like an office, granite counters, marble floors and hardwood flooring, but that doesn't mean they are able to afford those things based on their budget. Even though an extra $10,000 might not seem like too much, you don't want to play the game of "maybe I can afford it, maybe I can't." Keep your monthly payment at a rate you can afford. This way you aren't scrambling to make ends meet if something changes with your job.
Forgetting about all of the extras.
While you might be eliminating your rental payment and replacing it with a mortgage payment, there are other costs that come with owning your own home. Think about how much you are going to spend in property taxes, maintenance costs and repair bills. Many people don't think about the cost of insurance and taxes when purchasing a home and end up getting in over their heads. When you factor those things in, your monthly payment could cost more than you can afford.
Not getting everything in writing.
Oftentimes, homeowners neglect to get information pertaining to the deal in writing. If the seller tells you the appliances come with the home, make sure they put it in writing. You don't want to go into the home expecting one thing and discovering something completely different. Things like washers, dryers, drapes, hot tubs, bath fixtures and more should all be documented in the final deal to make sure you aren't losing out on something you thought you were going to get.
By taking the time to go through the information above, you can make sure your real estate deal goes off without a hitch.
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