Are you looking to purchase a new home? This experience can be very exciting, especially for first-time home buyers. However, it can lead to buyer’s remorse if you’re not careful and do not do your research while house-hunting for your dream condo or home.
The homeownership journey involves several processes and first-time home buyers may make some missteps along the way. Let’s have a look at several common mistakes that first-time home buyers need to avoid when searching for their home sweet home.
Not applying for a pre-approved mortgage
Purchasing a home requires financial backing, which a pre-approved mortgage offers. Applying for a mortgage early on gives you a better idea as to what a realistic budget looks like and ensures that there aren’t any surprises. There is nothing worse than falling in love with a home that you cannot afford.
Being content with the first home you see
While it is an exciting time, you need to exercise patience. View a number of homes throughout your search and keep an open mind so that you do not miss out on any hidden opportunities or newfound preferences.
Shopping for a home is not as straightforward as you may think. There are a variety of factors you must consider before making the purchase such as accessibility to roads and public transport, the style of the property, proximity to shopping, restaurants, and more.
These factors influence your lifestyle and complete your dream home. Besides, they ensure you can obtain an ideal price when moving out.
Falling in love with the home staging
Sellers nowadays go to great lengths to ensure that buyers purchase their homes in the shortest timeframe possible. Among other improvements, they reorganize the house to captivate the eyes of a potential home buyer, a process called home staging. While home staging is a common practice, it’s important to keep a few things in mind:
- In most cases, the furniture and wall decor including mirrors, paintings, and more are not included in the sale of the home
- The home will look vastly different once you move your own furniture and belongings in
- Home staging is performed by professionals who know how to make any room look larger and any space more desirable
- If you’re looking at a new build, they usually boast the highest and most expensive upgrades that may be outside of your budget
Depleting your savings for your down payment
Owning a home is an expensive affair. You should avoid using all of your savings as a down payment as there are always additional costs that will arise while purchasing a new home. Things like closing costs, upgrades, and home renovations are just a few examples.
You will also need to prepare yourself for your upcoming mortgage payments, utility bills, and other monthly costs that come along with owning a home once you move in.
Making drastic changes in your life
Change is good, particularly when moving to your new home. However, some drastic changes might throw a wrench in your homeownership journey and even make it more difficult for you to get approved for a mortgage. These changes include the following:
Switching jobs: Working at one place of employment for several years as opposed to switching jobs frequently is favourable when applying for a mortgage. If a job change is inevitable, it is recommended that you communicate this with your lender well in advance.
Applying for new loans: The time leading up to purchasing a home is not the time to take out a new loan or buy a new car. Lenders are looking for stability and consistency. Making any changes to your credit can work against you when looking to get approved for a mortgage.
Not taking advantage of your agent
House-hunting can be overwhelming, even more so for first-time home buyers. This is why having an agent to guide and assist you in making informed decisions is recommended. Ask as many questions as you’d like – they’re the expert!
Ask for comparables to understand the housing market in that area, and if there are any first-time buyer incentives you can take advantage of.
Your agent is there to help you in making one of the most important purchases of your life. Do not hesitate to use them as a resource.
Conclusion
Purchasing your very first home can be both exciting and confusing. Make sure the process is a seamless one by avoiding the above first-time homeownership mistakes.
