Let’s be honest, buying a house is not easy. It’s a complex process that requires a lot of research and attention to detail. There are so many things to take into account when looking for your dream home that it can get overwhelming at times. That’s why most first-time home buyers make common newbie mistakes that could have been avoided with better preparation. Mistakes come in all shapes and sizes, but the good news is that they are also avoidable. To help you out, we have compiled a list of common pitfalls to steer clear of when buying a house.
Buying a House? 9 Costly Mistakes to Avoid
Buying a house is a big deal, and it’s important to make sure you’re getting the best deal possible. The best way to do that is to do your research. Start by laying out a budget and determining how much you can afford to spend on a house. You can also talk to a mortgage broker to figure out how much you can borrow to make sure you find a house that falls within your price range. Next, get pre-approved for a mortgage loan, so you can walk into a house purchase with confidence. Pre-qualifying gives you a good idea of what you can afford, but it’s not the same as getting pre-approved. Once you know how much you can spend on a house and what your financing options are, it’s time to start looking for houses for sale. Start by signing up for real estate websites and apps like Zillow and Trulia. This way, you can get daily notifications of new houses on the market, and you can also save houses that you like for future reference.
Falling in Love with a Home
One of the biggest mistakes people make when buying a house is falling in love with a house that doesn’t fit their needs or budget, or falling in love with a home before they see the inspection. It’s important to remember that the house at this point in the searching phase is just a house. It’s not your family’s home; it’s not your home sweet home. You might have dreams and fantasies of the future living in that house, but it’s important to keep a clear head and not get caught up in emotion. If you fall in love with a house, you might be prone to overlooking important flaws with the property. Do your research and find a house that fits your needs and budget, but most importantly wait for the initial inspection to come through clear. It will make the whole process a lot less stressful.
Skimping on the Broker
A good real estate broker will help you find a house that you like and is within your budget. They can also help you navigate the complex home-buying process from beginning to end. A real estate broker will also be able to connect you with a lender who can get you a good mortgage rate, which is especially important if you are a first-time home buyer. The mortgage process can be complicated, and it’s not easy to navigate through it alone. A real estate broker is your guide throughout the whole process, and they can help you avoid costly mistakes. It’s important to note that real estate brokers get paid a percentage of the sale of the house, and that percentage goes up as the price of the house goes up. This means that they will try to sell you the more expensive house because they get paid more. Make sure you do your research and find a good, reputable broker.
Not Securing Lending
Lenders will look at your income and debt before approving your mortgage. You might be pre-approved for a certain amount, but lenders might not approve you for it because of your debt-to-income ratio. Debt-to-income ratio is the amount of debt you have compared to the amount of income you have. If you have a lot of debt and a low income, you might not be able to get a mortgage. You might have to get a cosigner or find an alternative mortgage. If you are self-employed, you might have to provide two years of tax returns. Be prepared to answer questions about your monthly bills like utility bills, car payments, childcare expenses, and more.
Neglecting to Calculate What You Can Afford
Before your journey to buying a house, it’s important to know what you can afford. How much can you afford to spend on a house each month? What are your other monthly expenses like? How much are you saving monthly for a down payment? How much do you plan on spending on repairs and renovations? These are all important questions to ask yourself before you dive into the home buying process. Make sure you know exactly how much you can afford to spend on a house. You don’t want to end up with a house that is more than you can handle. It’s a good idea to create a budget and find out what your expenses will be each month. Then, you can use that information to determine how much you can afford to spend on a house.
The location of a house can greatly affect its price. You might really like a house, but if it’s in a bad area or there are plans for a noisy new highway nearby, it might not be worth the price. It’s important to consider the location when buying a house. Where is the nearest grocery store? How far is the nearest highway? What schools are nearby? What are the neighborhood statistics? These are all important questions to ask yourself when considering a house’s location. It’s also a good idea to visit the neighborhood at different times of the day to see what it’s like.
Forgetting About Repairs and Updates
The bills will probably come as soon as you are done buying a house, and you will have to do some renovations and repairs from time to time. Don’t wait until you close on the house before you start looking at bills and expenses. Make it a habit to keep track of all the expenses related to the house. Be prepared for the unexpected and have funds saved up for the emergencies that are bound to happen. If you don’t have enough money saved up, you might have to put the house purchase on hold until you have enough saved up.
Forgetting Taxes, Fees, HOA, etc
Taxes and fees are an important part of buying a house, but they are often overlooked. It’s important to find out what your taxes and fees will be before you buy the house. You might like a house, but it might not be worth the money if it has outrageous taxes and fees. You don’t want to buy a house that you can’t afford.
It’s also important to find out about HOA fees. Some neighborhoods have HOA fees that you need to pay every month. These fees go towards common grounds and amenities. You need to make sure you have enough money set aside to pay these fees every month.
Buying a house is an exciting and stressful process. You need to make sure you are prepared for the good and the bad and for the house to be different than what you expected. It’s important to be flexible when you start looking at all the houses on the market. You might go to look at one house and end up falling in love with a totally different house. It would help if you also were prepared for things to go wrong along the way. There are a lot of paperwork, inspections, and other details that can go wrong when buying a house. It’s important to keep a cool head and not get caught up in stress when buying a house.
The Bottom Line
Buying a house is a big deal, and it can be a really stressful process. That’s why it’s important to ensure you are prepared for all the potential pitfalls. Start by doing your research, don’t fall in love with a house, don’t skimp on the broker, make sure your lending is in order, know what you can afford, and stay on top of repairs and updates, taxes, fees, HOA, etc. Don’t expect perfection, and you should do just fine.
Buying a House? Vasquez RE Can Help
If you follow these tips, you’ll be well on your way to a happy and successful home-buying experience! But don’t forget, we have over 20 years of expertise and the resources to help you. Let our team be your team! If you are planning on buying a house, contact us today.