January 18 2019

4 Major Mistakes to avoid when buying home

by Erin

woman with keys in hand

Without doing your research, it may seem like the only major step in the home buying process is to find the home of your dreams.  There is so much more to the journey of becoming a new homeowner and it can be easy to make a few mistakes along the way.  Here are 4 major mistakes to avoid when purchasing your first home.  

 

1. Emptying your savings 

You’ve worked hard for your money and worked even harder to save every dime for the ultimate goal of one day purchasing a new home.  Where would your finances be if every penny went into your new home purchase and you were forced to begin the process of saving all over again?

 

Be sure to save enough money to cover both the expected and unexpected costs of buying your first home.  This will include your down payment, closing costs, moving expenses, and cost of possible repairs. Don’t rush the process of buying a home if you are not ready financially.  Take your time to become financially prepared and save as much as you can. This is a lifetime investment.  You should be able to have a little breathing room when it’s all said and done.  Who wants to eat Top Ramen in their brand new gourmet kitchen?

 

2. Not taking advantage of first-time home buyer programs

First time home buyer programs can provide you with so much knowledge prior to going through the home buying process.  It is very beneficial to spearhead the process head first with as much knowledge as possible. Make sure to take all of the necessary steps to ensure that you are fully equipped to proceed in the home buying process and take advantage of the free recourses that are available to you.

 

3. Thinking a home inspection is not needed

Some buyers want to save a few dollars by not having an official home inspection completed prior to purchasing which in turn puts them in a position where they are actually spending much more than they initially expected. 

Real estate agents see this type of thing happening more often than not.  In today’s climate, many home buyers are more interested in closing in on a home before someone else does.

Avoid falling through a rabbit hole of ongoing repairs because you were blindsided by a nice paint job.  Be sure to include the price of a professional home inspector into your home buying budget so that there are no surprises or hiccups on your journey to becoming a homeowner.  Think about it.  You’ll have to get an inspector either way, so why not start off right. 

 

4. Making decisions based on your emotions

 

House hunting can be a very joyous experience. You can easily fall in love with that claw foot bathtub in the master bathroom or the stainless steel appliances in the gourmet kitchen.  Leading with your emotions rather than common sense and your budget in mind can place you in a difficult position when making wise decisions.  The home may seem perfect at first glance, but there may be underlying issues that may come up down the line that you may not be prepared for. When making decisions based on how you feel rather than what you know, you may find yourself trying to make your budget fit the house rather than the house fit the budget.   You can put yourself in a bind when spending more money than you can actually afford.  Try your best not to allow your emotion to guide these important decisions. 

 

All and all, be mindful of each step you take during your home buying journey.  Be prepared and gain the knowledge it takes to make smart moves when closing the deal on the home of your dreams. 

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