The decision to purchase your first one is a momentous one. However, the thrill of the chase for that perfect house, and the excitement of owning your own property, can often lead first-time home buyers into a number of bad decisions that can make this happy event more stressful. It really does require a significant amount of financial preparation and planning.
Here are a few pitfalls you should avoid when purchasing your first home:
- Not Being Realistic on What You Can Afford
Owning your own home entails more expenses than simply renting, often unexpected. You must not only save for a sizable down payment, but also be ready to for the insurance and real estate taxes that will be added to monthly mortgage payment. In addition, your utility bills will probably increase because of the larger living space.
Make sure to talk about potential expenses in great detail with your realtor.
- Using All Your Savings for the Down Payment
First-time homebuyers will have to come up with a certain percentage of the total for a down payment. But you should also be aware that you will have to pay for the maintenance and repairs that are routinely involved in home ownership, such as roof repairs, siding maintenance, electrical problems, lawn care and plumbing repairs. If you use your entire savings for the down payment, you may come up short for these other expenses.
Resist the urge to immediately purchase large amounts of furniture or other items for the new home. Instead, keep some money in savings for emergency repairs, when needed.
- Skipping the Home Inspection
Many first-time home buyers choose to skip the expense of having a home inspector go over the property, choosing to rely on their own eyes and mechanical expertise to assess the home systems. This can be an expensive mistake that can cost significant amounts if you assess incorrectly and have to pay for a major system repair or replacement.
A professional inspection can alert you to any problems that may appear in the near future, and will allow you to negotiate a better price for the property to compensate for any potential problems.
Buying your first house is a time of great excitement, but it’s also a time of great responsibility. For a first time home buyer, Capstone Direct in Thousand Oaks can provide important help for navigating this complex process. Give us a call today!