5 Costly Mistakes To Avoid For First Time Home Buyers
Hunting for a home can be really challenging and complex, especially as a first time home buyer. If you don’t pay attention throughout the process of purchasing a new home, you may end up with a house you don’t like or spend more than necessary. So to avoid future regret, keep the following mistakes in mind and be sure to avoid them when buying your first house.
Not hiring a real estate agent
A real estate agent is someone you want there with you throughout the home-buying process. They offer expertise in property negotiations, contract scrutiny, knowledge about home architecture, and many more essential procedures you will go through in the process. Also, as a first time home buyer, you are at a higher risk of getting scammed by fraudulent individuals. An experienced real estate agent can help you avoid getting caught in a scam purchase.
Not bothering about credit reports
Credit scores are used to determine the mortgage interest you get when trying to buy a house. If you are interested in spending less, you should ensure that there are no errors in your credit report that can cause a hike in interest rates. You can request for your credit report from any major credit bureau so you are up to speed with your current credit report.
Depositing a low down payment
What your mortgage company may not tell you is that the lower your down payment is, the more mortgage you pay overtime. When you pay a large down payment, it allows for a relatively affordable monthly mortgage payment. It is definitely advisable to spend more on your down payment and avoid a surge on your mortgage interest rate.
Replacing primary needs with aesthetics
As a home buyer, there are certain features that you must find in a house. Deciding to buy a house based on its appealing scenery will lead to future disappointment with the house’s functionality. Look for the basic fixtures and interior structures before considering the view and aesthetics because improving the property’s looks is not as expensive as having to reinstall fixtures.
Skipping out on financial planning
Depending on the nature of the home you plan to buy, you might need to pay for insurance, taxes, maintenance of your home, and closing expenses too! Be sure to plan ahead so you are not surprised with unprepared for all the bills.
Buying a home can be complex but it is exciting when you are making the right decisions. Be sure to consult an experienced real estate agent to help you get started on the right foot!
