First time home buyers assume that buying a home is a very easy process. It is the dream of many home buyers to find a home that suits their need at an affordable price. Many home buyers do not achieve their dreams because they make mistakes. Discussed below are useful tips that will help you avoid these common mistakes.
Failing to Budget
First time home buyers spend most of their time researching on homes but very little time on the financing options available to them. Home buyers are supposed to contact a home lender and get an approval for a mortgage. This helps them to look for houses within their price range.
Not Considering Additional Expenses
First home buyers fail to know that there are additional expenses on top of their monthly expenses. Property taxes, insurance fees and maintenance fees are some of the expenses that a home owner has to incur. This is a very serious mistake because the buyer will find it hard to keep up with mortgage payments.
There are certain home features that home buyers would want in their homes. At times, it is difficult to get everything you want in your new home. You will be required to compromise on some things because the funds are limited.
Making Assumptions on Foreclosures
Foreclosures happen because people did not factor some essential things. Most home buyers buy the biggest house their money could get them. However, they fail to consider that they need maintenance fee. The best thing to do would be to purchase a smaller house so that there is some money left to pay for the maintenance cost as well as taxes.
Showing Your Emotions
Once you have made it clear to the seller that you really love the house, they will know what to do or say to make you buy the house. Ensure that you do not let your emotions show if you want to get the upper hand during the negotiation process.
Failing to Do a Home Inspection
Hire a home inspector to help you ascertain if the house is in a good state. It will cost you a few bucks but could end up saving you thousands of dollars. The seller is not likely to tell you all the problems so hire an inspector to do it for you. It also enables you to get leverage during price negotiation.
Failing to Budget on Property Taxes
Property taxes are likely to increase with time; this will definitely increase your monthly minimum payment. Property tax should be factored when budgeting for the house. You could contact an assessor to know how much you will pay.
Failing to Include a Contingency Clause
A contingency clause protects the buyers in certain events such as losing jobs. The clause enables you to get the money you used to buy the property. If the buyer does not have this clause, he may lose that money and will be required to buy the house.