Becoming a homeowner for the first time is an exciting journey filled with dreams of your perfect home and visions of your future. However, it's also a significant financial and emotional commitment. To make the process smoother and more rewarding, it's essential to be well-prepared and avoid common mistakes that first-time home buyers can fall for.
Tip 1: Don’t buy more than you can manage
No matter how much you love a house, be careful to not bite off more than you can chew. Getting prequalified early in the home shopping process lets you know how much you can afford so you don’t fall for a house - and housing costs - that are outside your comfort zone.
Beyond the mortgage, remember that a house will have other expenses such as monthly utilities and ongoing maintenance needs and repairs, and you should consider factoring this into your budget.
Tip 2: Don’t skip the inspection
Some home buyers waive the home inspection to save time and money, or to compete in a hot market. But home inspections can uncover problems far more costly than the inspection fee.
Home inspections often identify problems related to the age and construction of a home. Some might be major, such as a sinking foundation, while others are minor, such as a broken dishwasher.
Even in a competitive home buying market, don’t ignore a house’s problems. You may be able to negotiate with the seller to fix them or lower the asking price depending on what your inspection might find.
Tip 3: Think about the neighborhood
While a home may seem like the perfect fit, take a look around the neighborhood before you make any decisions:
- Is the home near a busy street? Can you hear traffic noise?
- Are there barking dogs, loud music, or other disturbances?
- How close are schools, shops, and other conveniences?
- Do you feel safe in the neighborhood? Have you reviewed crime statistics for the area?
These considerations and others may or may not affect your thoughts about the house. Research the neighborhood by visiting at different times of day, and make sure you’re making an informed decision when deciding on purchasing your future home.