As the saying goes, there’s a first time for everything. And for every first in life, there are mistakes to be made and learned from. If it’s your first time buying a home, you’re bound to have a few missteps along the way. A recent study published by Bank of the West says that 68 percent of millennial homeowners said they felt buyer’s remorse after purchasing their home. That’s a pretty big percentage of regret considering that your house is probably the biggest purchase you’ll make in your lifetime. Instead of rushing into homeownership, do your research, take your time, and avoid these top mistakes made by first-time buyers.
Buying the Wrong Size House
This is a mistake we’ve seen homebuyers make time and time again. That four-bedroom house sounds awfully nice after squeezing all your stuff into cramped apartments and rental houses for so long. But then you move in and find out that you have more space than you need or want. On the other hand, you might think that tiny house inside city limits is just perfect for you and your significant other, but if you’re thinking of starting a family in the coming years, you’ll want to take that into consideration.
Prioritizing the House Over the Neighborhood
No matter how perfect the house is, if it’s not in the right area for you, you’re not going to be happy. Take the time to research towns and neighborhoods before you start looking for your dream home. Talk to neighbors for their opinions. Drive around the area to see what’s nearby. And remember you can always change the looks and layout of a house, but you can’t just pick it up and move it if you don’t like the neighborhood.
Forgetting About Taxes and Insurance
When you’re figuring out your budget and how much you’ll pay on your mortgage each month, it’s vital to account for annual changes in property taxes and insurance. Check out the tax history of your home online to estimate future changes. Do the same for insurance by asking your provider how much rates have gone up each year over the last ten years.
Insisting on Buying Close to Work
Adding just ten more minutes to your daily commute could open your search options up by a whole lot. Don’t limit yourself in such a big decision just to save yourself a little extra time in the car each day. You might be surprised at how much more house you can afford or how many more “extras” you can fit in just because you’re a little farther away from the office.
Not Getting Pre-Approved
Many first-time buyers don’t understand the importance of being pre-approved for a mortgage before starting the buying process. Sellers will look for a preapproval letter whenever you submit an offer. If you don’t have one, they might very well pass you over for another buyer. Being pre-approved shows sellers and their agents that you’re serious about buying their home and prepared to do it.
Not Having a Monthly Budget
Instead of focusing on a home’s total sale price, think about what you want to spend per month on homeownership. In order to have a clear view on this, it’s incredibly important to put together a monthly budget that includes all your bills and expenditures. A mortgage professional can help you look at your current budget and figure out how much house you can afford based on where you want your monthly payment to be.
Thinking You Can Do It On Your Own
It’s always a good idea to use a real estate agent when buying or selling a home, but it’s especially important to do so as a first-time homebuyer. Your agent will be your source of They possess a wealth of knowledge and up-to-date training on the ins and outs of buying and selling as well as real estate law to keep you out of trouble.