15 Lessons That Most First Time Home Buyers Learn When It’s Too Late
Probably you think you’ve paid house rent for long enough, and plans of acquiring your home are underway. There is a high likelihood that you don’t have much knowledge about what home ownership if you are an expert in home affairs. Home ownership can be a daunting undertaking. It requires allocated much before you have made up your mind on what to settle for. There are many things first-time homeowners wish they could have known before purchasing a home. Unfortunately, the lessons come too late when nothing much can be done about them as a solution to the past mistakes.
1. Consult a Housing Counselor
On most occasions, people assume that they know enough, or they do not want to appear ignorant. That makes most take the dreaded move. If you decide to trust your instincts and go the whole hog, then you are bound to make unimaginable mistakes. Get informed that there are nonprofit housing experts ready to offer guidance through the entire process. Counselors of nonprofit agencies are always willing to offer object and unbiased recommendations. If your concern is that all the home experts might skew everything for their interest, then you have nothing to fear.
2. Ensure Home Ownership Fits Your Lifestyle
Before making that important life impacting the decision, you need to put into consideration your current position. Do you think you will manage to pay for that mortgage if you decide to own your home that way? It reaches a time when the economy does not favor you. Even worse, you are unemployed or lose your job along the way. It, therefore, means defaulting in clearing your loan. If you fear that things might turn out bad, then consider hiring a home. Only after you are guaranteed of a secure future and ability to settle any loans should you agree to own a house on mortgage.
3. Careful Selection
You do not want to regret later that your current home has little to offer regarding good schools, hospitals. Of more importance are the crime levels in the area. You wouldn’t like to put your life at risk of daily attacks. Get to know the property tax and insurance rates. A good neighborhood is, no doubt a primary factor that will influence your future in your home.
4. Home Inspection
It is not uncommon to trust ourselves too much till we forget the why professional exist. Mostly likely, your fear is the amount of money they will check your home. But did you know that you could save yourself future troubles by entrusting professionals to inspect it? They have the skills to understand the condition o the home and identify any major problems. They then will advise you on the next measures to take.
5. Avoid Rush
This point should have appeared first or second. Nevertheless, it remains one of the key determinants of a good home. More often, you may feel that you can’t wait to own a home. You have gone through hell parting with house rent on a monthly basis, and now you want your freedom. A lot of people have regretted rushing in making crucial decisions in life instead of giving it enough thought. Be sure to take your time. Research, consult people, and professionals, get to inspect the home yourself. Get to know if any financial institutions are offering first-time homeowners low-interest deposits. Simply take your time. You will thank yourself you did.
6. Most Home Ownerships Cost More than Planned
Many first-time owners only see the cost of basic house maintenance. The amount required for maintenance may not appear like a big deal. According to financial experts, you need set aside an annual emergency fund equaling at least three months your living expenses. In case you think your income will not be sufficient to settle mortgage loans, consider renting your home.
7. Take Your Time for Comparisons
Before settling any particular choice, you need to dedicate enough time. Setting aside sufficient time will help you settle on the best deal. You may benefit finding a bank willing to offer an affordable first-time homeowner loan and professionals. Then, you will find your dream home. No future regrets.
8. Approval for Financing
If you expect to buy your home using a mortgage, then you will be doing yourself good by first approaching your bank. Pre-approval is necessary as it keeps you guaranteed that the lender is willing to lend you a certain amount of money for your project. The lender first appraises whatever property you own. If it is worth more, then you are qualified for that amount for a fixed period. Remember that some lenders may require you to pay some fee for pre-approval. A pre-approval enables you to shop around with enough confidence since you already have a source of funds. The worst disservice to yourself would be approaching, keeping the sellers waiting, and preparing to move only for your financial institution to fail to approve your loan.
9. Buying a Home is Not a Must
You may purchase a home because that is what people expect of you. Probably you are optimistic that it is a good investment, it might not be. Your intent of buying a home would be to fit in a certain group or to you think it will change your way of life living in the suburbs. Get this right. Owning a home is a financial thing and not emotional. If you feel you are not ready financially, then, remain a tenant. Owning a home requires more than just desire and aspirations.
10. Don’t Try to Impress
It happens a lot. You may feel like you are hurting somebody or that you are going to lose a good opportunity by denying an offer and walking away. If, for any reason, you feel the home does not meet all the standards, then feel free to look further. In any case, you are not indebted to anyone. Don’t settle for anything less in the hope that you will rectify the flaws later. Remember it might cost a fortune renovating a home.
11. School District Affects Home Value
Do you have kids? If yes, then there is no way you can avoid this no unless you plan to educate them miles away from home, which is not great. Homes located in areas with many sought out schools appreciate super fast and may cost you a lot of money. If you do not have kids, then you could easily avoid such locations that may prove unaffordable. It is, therefore good to weigh the options available and your financial muscle. Only then can you manage to reach a final decision.
12. A Land Survey is Ideal
Buying an existing home comes with its share of problems. A land dispute is one of them. there are always scenarios whereby neighbors have disagreements over boundary issues. You may be caught in the thick of things if you fail to take your time before signing any documents. Get trusted land surveyors to ascertain that for sure, the land has no disputes and that it belongs to the seller. There are documents and government records to show that. Request access to them and save yourself troubles with your neighbors in the future.
13. A Down Payment is a Strong Point
You will agree that for you to appear a serious buyer and to gain a better-negotiating ground, you will need to pay a deposit first. That eliminates the doubts of the seller so he may not categorize you as a person who is just interested. If you are on the sellers’ favorite list of prospects, it means that you stand to be among the first to benefit if nobody offers a higher price. Also, there may be those who bid higher prices, but they have not yet shown commitment.
14. Tweaking Bidding Strategy
Are you tired of failing in all bids that you place? Then here is another ingenious strategy that you could employ. Here, you quote your prices but promise to pay up to a certain maximum if there buyers who propose more. Suppose you quote $300,000 as your price but agree to reach up to $320,000 if somebody else quotes a price higher than $300,000. If no other buyer comes, then you stand to own the home. Just come up with your winning strategy. What matters most is that you get value for your money.
15. Bid Reasonably
You will face a lot of frustrations that come from rejections for placing your bids too low. Make sure you always quote a price that will not make sellers dismiss you as a joker. It’s uncommon to find a seller who will be so desperate to dispose the property way too below its market value. Make efforts to know the average amount of money a particular property is worth and state any price in between. Failure to do so will make potential sellers ignore you and ultimately waste much of your time and resource with no tangible results.
Now, you’ve known what it means to own a home. Not only that, you have learned how to go about from choosing between owning or renting a home. Also, how to go about searching, inspecting, taking advantage of whatever opportunities are available and all that you need to get clear before finally closing the deal with the seller. Save yourself the troubles that come with rushing and making the wrong choices. Learn from the tips above and be assured of a good home-buying experience.