When you’re buying your first home there’s a million things to consider.
Apart from simply knowing what you want in a home, you have to decide on a realtor, a bank for your mortgage, how much you can and are willing to spend, and an array of other decisions.
Needless to say, it can all be extremely overwhelming. And when it’s your first home, it can be difficult to know where to start. That being said, you’re bound to make a few mistakes along the way.
Your first home purchase is a learning experience, and like most experiences, it’ll teach you what to do the next time you buy a home. Here are five things I’d do differently the next time I buy a house.
1. Budget More
When you’re budgeting for something you really want, any amount of time you wait can seem like forever. Purchasing a home is a huge expense. There’s no way around it, which means you’ll most likely have to take out a mortgage.
While that fact is inevitable for most home-buyers, you can control how much of a mortgage you have to take out. The more you save, the less you have to borrow. Ergo, the sooner you begin to save, the better.
It’s a good idea to try and save up at least 20 percent of your home’s value, you’ll be in much better shape in the long-run. The hard part of this is that you might not know when you’ll purchase your next home. Nonetheless, it’s still a good idea to set aside a separate category within your budget and start putting away $50-$100 a month. When you’re able to take out less of a mortgage and have smaller monthly payments, you’ll be glad.
2. Buy Less of a House
Viewing potential homes can be a lot of fun. It’s always interesting to see the different styles and models available. During the process, you’ll likely find homes and details that you absolutely love, some that may even be more than you need in a home.
Even though a bank is willing to provide you with enough of a loan to purchase a five-bedroom home, doesn’t mean you need to do so. It can be easy to get caught up in thinking you need more space or features than you actually do, and when you’re looking at home after home, it can be tempting to consider homes that might be above what you initially were going to pay.
All that being said, carefully consider what you really need in your home and try to stick to it. Purchase a home that’s either exactly or, even better, less than what you’re able to afford. You’ll save yourself from having to make large payments each month, and be able to take care of any renovations, repairs, or upkeep your home might need.
3. Ask More Questions
Sometimes when you’re new to a process it can be intimidating to ask too many questions. If you’re anything like me, you always have that fear in the back of your mind that you’ll appear unintelligent or ask a question with a really simple answer. Again, however, purchasing a home is a huge deal, which means you should ask every single question you have of your realtor, bank, and the seller.
Moreover, it’s important to remember that if you don’t ask, chances are no one’s going to tell you. If you have inquiries regarding aspects of the house, be sure to ask before you put down an offer or money. You’d hate to find out about something detrimental after you’ve purchased the home. And if there’s anything about contracts or the buying or lending process that you’re unsure of, don’t be afraid to speak with your realtor or bank. After all, it’s better to be safe than sorry, especially when a good portion of your money is on the line.Avoid these common mistakes when you get ready to buy a house. #buyahouse Click To Tweet
4. Shop Around for Rates
Whether you need a realtor, contractor, or broker, you should always price shop before making a decision. If you simply go to one business and accept the first offer you find, chances are, you’ll spend more money than you’d like. Like with any purchase you make, it’s always important to shop around.
Make sure you not only check references, but look online for reasonable prices so that you know if you’re being charged to high. And when it comes to things like contractors or brokers, be sure to get at least two, if not three, bids for your renovations and loans. You might be surprised at just how much of a difference there is between different companies offers. By not going with the first offer, you could save yourself thousands of dollars.
5. Get Another Opinion
You can only look at so many homes before they begin to blur together, and when you fall in love with a home, especially depending on how long you’ve been looking, it can be difficult if not impossible to see any flaws. After all, love is blind, right?
It can be life and money saving to make sure you bring in an unbiased, third-party before going ahead and purchasing your home. Pick someone you trust to come in and make sure they don’t see any potential or current problems with the home you’ve picked. They might pick up on things that went unnoticed to you, which could save you from potential heartache and debt in the future.
Buying a home can be a long and sometimes confusing process. And depending on how long you’ve looked, when you do find something that meets your needs, you might be all too eager to simply jump right in. This is especially the case the first time you purchase a home. If you’re like most people, however, you’ll probably buy more than one home in your life, and the mistakes you make the first time, will be great life lessons the second.
Did you make any mistakes when purchasing your first house? What did you amend the second time around?