Buying your first home can bring a wealth of emotions, from excitement to terror, stress, anxiety, and complete and utter joy. It’s a rollercoaster ride that makes you wonder why you started this in the first place, when it’s going to be done already, while relishing the twists and turns and occasional flip of the stomach.
If becoming a property owner is on the cards for you and you’ve spent too many nights lying awake at 2 a.m. pondering the intricacies of homeownership, this post is designed to help clarify some things and let you in on a few mistakes first-time buyers need to avoid.
Blowing The Budget On Daydreams
While everyone wants that gut feeling that this is the one you should go for, it’s not always a reality, and it’s not a luxury you should chase, especially if that dream exceeds your budget. It is too easy to fall in love with a house outside of your price range (also see Say Yes To The Dress and trying on wedding dresses over your budget). Stretching too far lands you in the unenviable position of being “home poor, ” i.e., living in a property you can’t actually afford to enjoy. You can avoid this by being strict with yourself and staying within your budget limit or below it.
Skipping The Boring Costs
The down payment isn’t the only payment you need to make or even the last payment. And you need to be budgeting for costs such as closing costs, insurance, taxes, HOA fees, etc. They all creep in and add up fast, and before you know it, what was once an affordable home is now increasingly out of your price range. So sit down, list all the expenses, and know exactly what ownership will cost you before you even make your first mortgage payment.
Looks Over Location
While top-of-the-range features and finishes are nice to have, if the property is in the wrong location, it won’t work for you. Certain things are good to include in your wishlist, but they won’t be worth it if your commute is longer or you’re out of the good school district. You need to think about what you need from your location, whether you’re happy with busy roads or local amenities etc, and what you want from your neighborhood.
Not Considering Future You
Your first home might not be your future home, and that’s fine, but it’s still a worthy consideration. Because if your first home is your starter home, you probably don’t need all the space and rooms and bells and whistles. You will have different needs and can make more compromises. And then when you know what you want, you can make a new search for your forever home. However some people like to buy with their future home in mind and this means they could be looking for detached homes for sale for example that offer them what they need and for what they envision their future to be whether it’s accommodating multiple rescue dogs in acres of land or having a large family or even a space for senior relativists to move into when the item comes. Thinking about what the future you need should be part of your decision whether you’re buying it now or at a later point in time.
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