Purchasing a new home is a major decision that faces many consumers in the US. First time homebuyers are often in danger of making mistakes that can jeopardize their financial wellbeing. Read on for information about the most common mistakes first time homebuyers make.
One of the first mistakes new homebuyers make is not researching how much house they can actually make. New homebuyers should use a mortgage calculator to help them determine how much they can afford to pay for a home. They should immediately speak with a trustworthy home lender to help them use the mortgage calculator and get preapproved for a home loan. This prevents homebuyers from choosing a home that is beyond their budget. By speaking with a home lender and using a mortgage calculator, they can find the right type of home for their pocketbook.
Sometimes, first time homebuyers do not choose a home because of repairs that need to be made on a house. This could also be a mistake. Some problems in the home can be fixed quite easily. Unattractive wallpaper can be replaced, scratched hardwood floors can be repaired and dirty carpet can be fixed by using carpet shampoo. Instead of focusing on cosmetic blemishes, a savvy homebuyer should look beyond the superficial and make wise decisions based on price and overall condition of the house.
First time homebuyers may fall in love with a home, but forget that all houses require regular maintenance. Eventually, pipes may leak or a roof may need to be replaced. It’s important to factor in repair costs when determining if you can afford a home. Keeping a home in excellent shape can sometimes be quite costly, but homeowners need to be prepared when these expenses arise.
Whenever a person thinks about purchasing a home, he or she should hire an inspector to inspect the home for serious defects or problems. Some potential homebuyers do not hire a professional home inspector. This is an expensive mistake. The home they plan to buy may be plagued with mould. It may even be infested with termites or have poor insulation.
Another mistake first time homebuyers make is not including property taxes in the budget. Property taxes often rise the longer a person lives in a home. Failing to factor these costs into a budget can cause the new owner to become overwhelmed by the amount of money that must be paid to the government in taxes.
People on the hunt for a new home sometimes think that foreclosed homes are virtual goldmines for house hunters. They feel that they can receive a better deal on a foreclosed home. In reality, the foreclosure may not be worth as much money as the previous owner owed to the bank. The market value of the home may have dramatically decreased. Homes in foreclosure are also more likely to be vandalized since they may sit vacant for months. This will lead to costly repairs for the homebuyer, increasing the amount they have invested.