23 Jul Avoid These 6 Mistakes If You’re a First Time Home Buyer
First time home buyers are happy and excited as they are about to realize their dream of homeownership. They do not have enough experience and it is natural for them to make mistakes that can prove costly in the long run. Thankfully, a first time home buyer can learn from the mistakes of other buyers and make your home buying exercise smooth and hassle-free.
1. Not getting pre-approved for a mortgage
Pre-approval from a lender is not essential but it makes house hunt and making an offer that much easier. All it takes is submitting your financial statements to a bank and getting a pre-approval letter. You know how much loan you can get to focus upon properties inside your budget. Your offer is also taken seriously by sellers with pre-approval documents in your hand.
2. Not shopping for a mortgage
A mortgage is a financial product just like any other product in the market. You must go through the offers of different lenders and choose a mortgage that best suits your requirements. Applying for a mortgage at the last moment does not allow you the luxury of approaching different lenders.
3. Not borrowing within your limits
Just because you can afford to pay large EMIs does not mean you should borrow too much to buy a home. Too high EMIs leave very little in your pocket, making it difficult to undertake desirable home improvements. You can also face difficulties in repayment in the future.
4. Not searching for homes actively
Many people rely too much on their Realtors® to find a home for them. Buying is often a once in a lifetime exercise and you need to take part actively in-house hunt to find the best home for your family.
5. Not going for a home inspection
Many buyers make the mistake of not conducting a proper inspection of the property before buying. They rely on their own inspection and try to save a few hundred dollars on this exercise. It can prove costly later when serious flaws in structure or features are found out.
6. Not estimating additional costs correctly
Buying a home is not limited to paying the down payment and the closing costs. There are additional costs involved with this exercise such as home insurance, cost of moving, property taxes, changing of locks, inspection fee, and so on. Finding these costs and keeping enough money in your account saves you from the blushes.
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