Hello World! Welcome Friends! First time home buyers have consistently proven that they are vulnerable to making mistakes due to lack of experience and anxiety that occurs when one is buying a dream property. Some of these mistakes are fatal and some have led to the loss of life savings. Before you buy your first property, you must learn some common mistakes and how you can avoid them.
1. Skipping Home Inspection
First time home buyers have little or no clue that the home inspection process is necessary before agreeing into any contract. As such, most of them end up buying properties that need through make-over without their knowledge. To avoid this mistake, it is crucial to look for assistance from people who have previously bought a home, as they will remind you of this vital step.
2. Exceeding the Set Budget
Homes are expensive investments, and therefore, it is always necessary to stick to the set budget to avoid high costs. However, due to the confusion that engulfs new home buyers, there is a high chance that they will pay more than the set budgets. This is a widespread mistake in the property market, and you can quickly solve it by working with a real estate appraisal expert who can guide on the actual value of the property.
3. Forgetting Property Insurance
Studies show that new home buyers have also been forgetting home insurance, which is one of the most important factors they should consider to keep their homes safe. As an aspiring homeowner, you should check out MSIG to know more about home insurance and its potential benefits to homeowners. It is also essential to check whether there are other forms of insurance aspects associated with the new property.
4. Overlooking Homeownership Costs
Most of the first time homebuyers have a perception that they only need to pay for the value of the property. However, there are other unseen expenses such as maintenance expenses and property taxes you will pay after owning a home. These are essential costs that you should not overlook because they cannot lead you to substantial financial turmoil, especially when combined with monthly mortgage payments.
5. Not Shopping for Mortgages
In most cases, first time home buyers apply for mortgage loans on the nearest bank without shopping around to evaluate the products on offer. This is a serious challenge that has faced many homebuyers across the country where they have ended up choosing an expensive mortgage. To avoid this, take your time and shop around for a mortgage that matches your financial needs.
6. Confusing Prequalification and preapproval
Most of the first time home buyers confuse mortgage prequalification for preapproval, and they continue to search for property only for them not to secure the loan. This mistake occurs due to the technical terms used by underwriters. You can avoid this confusion by asking for clarification and going further to ensure that you have secured the loan before listing as a home buyer.
As you can see, you can make severe mistakes when you are buying a home for the first time. These are just a snapshot of the mistakes you can make. However, working with close relatives or professional real estate agents can cover your back and help you to avoid losses.
Click the links below for any posts you have missed:
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