Buying a home is one of the most important decisions in a person’s life. But it’s also a big decision that can be overwhelming and confusing. They say buying a house is like no other purchase you’ll ever make, but what they don’t tell you is how to buy one without making any major mistakes or getting taken advantage of. Aside from saving up money and getting pre-approved for a mortgage, there are other things that will help you be successful as a first-time home buyer.
It doesn’t really matter if you’re a first-time homebuyer or not; it’s important to remember that buying a home is an emotional and stressful endeavor. A home inspection in Virginia is critical for every purchase because it’s likely one of the most expensive transactions you’ll ever make. The house itself will be one big investment, but there are other investments you’ll need to make as well: furnishings, financing costs, and more. In this article, we go over the five most common first-time home buyer mistakes and how to avoid them so that your homes purchase goes as smoothly as possible.
The 5 Biggest Home Buyer Mistakes And How To Avoid Them
Whether you’re a first-time homebuyer or not, it’s important to remember that buying your first home is an emotional and stressful endeavor. It’s also likely one of the most expensive purchases you’ll ever make. The house itself will be one big investment, but there are other investments you’ll need to make as well: furnishings, financing costs, and more. In this article, we go over the five most common first-time home buyer mistakes, including skipping a home inspection in Charlottesville, VA, and how to avoid them so that your home transaction goes as smoothly as possible.
Mistake #1: Not Saving Enough for a Down Payment
When you’re purchasing a home for the first time, it’s actually very easy to get immersed in the excitement and overlook some of the more practical aspects – like saving for a down payment. The average down payment on a house is 6% for first-time buyers to 13% for repeat buyers, according to the National Association Of Realtors. And that’s just the average – in some markets, like San Francisco, the average down payment is closer to 20%.
If you don’t have ample money saved for a down payment, you might be enticed to take out a personal loan or put the purchase on a credit card. But this is one of the biggest first-time home buyer mistakes you can make. Not only will you end up paying more interest, but you could also damage your credit score and jeopardize your chances of getting approved for a mortgage.
The best way to avoid this mistake is to start saving early and make sure you have enough set aside for a substantial down payment. If you can’t come up with the full 20%, talk to your lender about other options, like an FHA loan which only requires a 3.5% down payment.
Mistake #2: Failing to Research the Neighborhood
Another mistake first-time home buyers make is failing to research the neighborhood before making an offer. It’s important to know what you’re getting into before you commit to a purchase. Here are a couple of things you should look into when researching a neighborhood:
Crime rates: This is a very vital factor to consider, especially if you have children. You can find crime statistics for most neighborhoods online.
Schools: If you have school-aged children, it’s important to research the local schools. Look at test scores and talk to parents who have kids in the district.
Commute: How long is the commute to work? Is public transportation available? These are important elements to consider when choosing a home.
Noise level: Find out how noisy the neighborhood is. Are there a lot of bars or nightclubs nearby? Do the neighbors have loud parties often?
Property values: It’s important to research recent sale prices of homes in the neighborhood. You don’t want to overpay for your home, and it’s helpful to know what similar properties are selling for.
Mistake #3: Buying Too Small or Too Large of a Home
When buying a home, it’s easy to get carried away in the excitement and make impulsive decisions. One of the most predominant mistakes first-time home buyers make is purchasing a home that’s either too small or too large for their needs.
If you buy a home that’s too small, you’ll likely find yourself outgrowing it quickly and will be back in the market for a new home sooner than you planned. On the other hand, if you buy a home that’s too large, you’ll be stuck with high utility bills and maintenance costs. Not to mention, you’ll also have more space than you know what to do with!
The best way to avoid making this mistake is to take stock of your current and future needs before starting your search. Make a list of must-haves and nice-to-haves, and be realistic about what you can afford. Once you have an idea of what you want , start narrowing down your options until you find the perfect fit.
Mistake #4: Not Checking Utilities or HOA Fees
If you’re not careful, the cost of utilities and homeowners association (HOA) fees can eat into your budget and leave you struggling to make ends meet. Before you make an offer, be sure to check with the local utility companies to get an estimate of what your monthly bills will be. Also, find out if the community you’re considering has any HOA fees that must be paid. These fees can add hundreds of dollars to your monthly expenses, so it’s important to add them into your budget before making a purchase.
Mistake #5: No Home Inspection
As a first time buyer chances are you’re not familiar with the ins and outs of buying a home. This can lead to making some big mistakes, one of which is not having a certified home inspection in Fredericksburg, VA. A professional and thorough home inspection is a very important step in the buying process because it can reveal any hidden issues with the property that you may not be aware of. If there are any major problems, you may be able to negotiate the homes asking price or have the seller make repairs before you close on the deal.