Buying a home, especially for first-timers, is an exhilarating experience. If you aren't careful, the excitement can easily ruin your plans for getting the right property. Here are some of the common mistakes first-time homebuyers are likely to make; take care not to make the same mistakes:
Spending Too Much or Too Little On the Actual Purchase
If you are buying a home that you intend to live in for the rest of your life (or for many years), you need to take your time and get it right. You shouldn't buy a bigger house that you can't pay for or a smaller one that your family will outgrow in a few years. The latter scenario is especially possible if you have a young family that you expect to expand in a few years. A big house comes with bigger bills – heating bills, landscaping, mortgages payments, taxes, and renovations, among others. Therefore, scrutinize your budget and family size to ensure that you are buying a house that you can pay for and will continue to meet your needs for many years to come.
Not Budgeting For All the Costs
Closing costs include all the fees associated with the purchase of your new home; they can be incurred either by you or by the seller. Examples of closing costs include legal fees, taxes, commissions for your agent, loan application fees, recording fees, fees for title searches, and many others. The closing costs can be as high as 6% of the property's price.
Other "hidden" costs related to the purchase include moving costs and some money for new appliances or services that your new place requires. For example, if you were living in a rental apartment and the landlord was responsible for mowing the lawn, you will need some money for lawn mowing services or for buying a lawn mower. Therefore, consider all the possible expenses you are likely to incur for your new home before putting all the money in the actual purchase.
Letting Your Emotions Rule
So you found a house painted deep gray, and you have always dreamed of owning a house with that color? Don't buy it, not unless it meets your other requirements. A big bathroom, white picket fence or the greenest lawn you have ever seen – all these are good things, but they shouldn't be your sole reason for buying a house. If you are emotionally attracted to a house, you can rush to buy it only to realize that it has some hidden faults or that there were better offers on the market. The house with the big bathroom can end up having hidden mold damage when you skip the inspection and proceed to sign the purchase agreement. Take your time and analyze each property to ensure it ticks all your boxes or the most important ones, before purchase.