Everyone has a wish to own his/ her own dream castle. But the accomplishment of this dream requires the right knowledge and approach. There are several small things, which, if neglected, can prick the dream bubble of home buying. While buying a house, the actual requirement must not be forgotten among offers and discounts. Such attractions in the beginnings may turn out to be irreparable mistakes in the future. So, here are some tips to help you sort through all your different options to find what is truly important to you in your new home.
Forgetting about Hidden/Additional Costs
One of the most common mistakes that the buyers of new home commit is forgetting about the hidden costs that they may be required to pay apart from the actual cost of the house. There are several hidden costs that first-time home buyers neglect to prepare for. Home buyers are most of the times not aware that the builders intentionally lower the property prices and secretly increase the maintenance and other charges. So before finalizing the deal on your house, the buyer must have knowledge about all the hidden costs which are involved in the purchase of the house.
Unlike renter, once you are a homeowner, all the additional costs starting from property taxes to insurance and utilities have to be borne by you. The cost of occasional repairs and maintenance also has to be adjusted which will become the expenses on top of your monthly payment. Also, if the home that you are interested in buying is a condominium, you will have to pay the monthly maintenance cost in the form of condominium fees regardless of whether anything needs fixing. So instead of being unaware and incurring the loss, the home buyers must be aware of all such expenses in advance.
Purchasing a Home with Emotions Rather Than Reason
Buying a home for the first time is undoubtedly an emotional moment, but in these emotions of the heart, one must not forget to consult the brain too. In the over-excitement of buying a new house, one must not forget to use his/her common sense. This is one of the most common mistakes which first-time homebuyers make by basing their home choice purely on emotion rather than logic. The selection of a home should be based more on needs and budgets rather than only emotions because if you go only by feelings, you might end up buying a wrong house or at times paying more than the actual amount of the house.
The most significant loss in such cases is the loss of an excellent property. For example, if you find your ideal house, which is as per your need and budget, then you must not waste much time contemplating whether it is right for you or not. The reason is there are other buyers too, who may avail the deal if you take a lot of time. Also at times, the buyers prefer to remain in the memories of the deal that they have missed because of the emotional connection they had with it. So, while buying a house, the buyer must be able to make proactive decisions with a logical approach in order to avail the best possible deal on the minimum budget.
Choosing the Wrong Location
Location plays a critical role in deciding a new house for the buyer. Before opting for a home in a locality, one must make sure that the place must not be deprived of essential amenities like water, electricity, etc. investing a large sum of money in a location that frequently faces electricity shortage or water crises will not be a good option. Such issues may also crop up in urban areas, and therefore the buyers must adequately evaluate the property before investing in any project.
Another critical factor that must be kept in mind while selecting a proper location is the access to useful places like market, hospital, schools, parks, etc. a research about the neighborhood must be made, and the required details about the location and its nearby places must be taken into consideration. Also, the location must be such that it is more comfortable in the near future to resale the property if in case you decide to shift. An outskirt location may not be able to provide you all such facilities. So, the decision of choosing the location must be made wisely.
Not getting Pre-Approved for Mortgage
Skipping mortgage qualification may prove to be very costly. Most of the time it is seen that what the bank is willing to offer and what you can afford does not match. So, it becomes necessary to get pre-approval for a loan before placing an offer on a home.
How to avoid Mortgage Payment Trouble? There are many solutions on it. Look for what mortgage the bank is willing to offer and then compare it with your credit and income. If you directly apply for a loan and sign a contract with the agent without the pre-approval for a mortgage, you might end up wasting yours as well as the agent’s time if the bank is not willing to lend you what you need.
Also, while looking for the right bank for a mortgage, one must not make a decision in haste. At times you might feel comfortable going to a bank, which you know, but that might not be the right approach. Finding the right mortgage which provides you with the best deal, may help you save a lot of money too. So, one must look for all the available options, from bank to brokers, by examining them thoroughly before jumping to a conclusion about a mortgage.
Avoiding/Skipping Home Inspection
In the over the excitement of buying a new house, you may miss a flaw, but it won’t remain hidden from an expert’s eye. It takes a trained eye to notice the hidden defects that may exist in any house. This is where the importance of home inspection comes into play. Inspectors will evaluate the structure, construction, and mechanical systems of the home and will give you the approximate cost of repairs that may be needed. They will examine not only the electrical system but also the foundation and floors. So if you want to skip the headache of performing too many unexpected repairs after the purchase of the house, it is important not to skip an expert home inspection.
The cost of such an inspection may be a few dollars, but it may save you from investing thousands of dollars later because of the unidentified defects in the roofing or plumbing system. Also, such inspections help you in providing the complete picture of the house’s physical condition that in turn helps you in avoiding financial mistakes in near future. Nowadays, most of the vendors are including the pre-inspection feature to help sell the home. This benefits both the parties in knowing the repairs required and hence they can best settle upon the cost of the house. It is advisable to hire your own inspector, independent of the broker, to ensure that the inspection is proper and fair.
The above description clearly tells that the inspection is worth every penny. It is actually a small price to pay for the peace of mind of knowing your prospective property is free of significant defects. So, get recommendations from your people who have already bought a house in that area and have a professional inspection done before you close on the house.
Neglecting everything to get in Writing
It is good to trust the seller, but it is much better to get it in writing. This is an important point to consider because it has been seen in many cases that the seller took the drapes down when the buyer expected them to be left. Due to this replacement of thing which you thought will be present may cost you a significant amount. So have a closer look at the agreement and go through it with a fine-toothed comb. Look for all the items that you feel must be there like kitchen appliances, ceiling fans, washers, dryers, hot tubs, etc. and if you think that the item you expected to be is not there then ask about it and get it added in writing so as to avoid any future loss.
For this, it is very crucial to read the contract thoroughly before buying the home. Not understanding the purchase agreement may make you vulnerable to fraud. This is because you may not be provided the required items, as it was not mentioned in the contract, and you might pay the whole amount in the illusion that the item you expected will be present. This means that the buyer that the buyer has not read the document correctly and is not aware of the house has all the requisite clearances. So, thorough verification of the paper, preferably by a lawyer, is a must to avoid any sort of forgery after the purchase of the house.
Conclusion:
For many people, a home is the most extensive purchase they will ever make, but it need not be the most difficult. Buying a house is a beautiful dream that every individual has, but this very thought can turn into a nightmare if we commit some fundamental mistakes. Though the mistakes mentioned above might seem to stress, knowledge about these issues ahead of time can not only prevent you from committing those errors but will also help you in saving a potential amount of time as well as money. So, go through the mistakes mentioned above which a buyer commonly makes while purchasing a property and you protect yourself from costly mistakes and shop with confidence.