So, it is that stage of your life where you have ample savings accumulated in your bank account, and you have made up your mind to buy a new home for yourself. But, being a first timer, the thought is exciting yet daunting. The aspiration is to end up in a house we love at a cost we can afford. Many people do things that prevent them from reaching this goal. Alarm yourself with these tips to get the most out of your first ever real purchase. Prevent from making these costly mistakes that could put a hold on that nameplate.
Not Knowing Your Affordability
Without knowing your affordability when buying a new house, you might waste time and a lot of money unnecessarily. You could end up looking at houses that you can't afford yet or visiting homes that are below your optimal buying capacity. It is always wise to design a budget to avoid unnecessary expenses. Prior to that, make a list of all your monthly expenses (excluding rent), including vehicle costs, credit card statements, groceries, health insurance, retirement savings, and so on.
Also keep in mind the significant annual expenses, like insurance premiums or annual vacations. Deduct this from your take-home pay, and you'll know how much you can spend on your new home.
Cutting Mortgage Qualification
What you think is affordable for you and what the bank is willing to lend you may not be the same, especially if you have an unstable income or poor credit ratings. It is always essential to get pre-approved for a loan before placing an offer on buying the house. If you skip it, you’ll be wasting the seller’s time, the seller’s agent’s time along with yours. You would end up in a dilemma and discover that the bank won’t lend you what you desire or is willing to place terms that you find unacceptable.
Being Too Choosy
It is always wise to consider every little detail when you think of buying a new home, but don't suffer paralysis from analysis syndrome. Don’t be so inflexible that you end up continuing to rent for a significantly longer time than you wish to. As first-time home buyers, it is common to compromise on something because the funds are limited. You may have to live on a busy street, accept outdated décor, make some maintenance repairs, or forgo that extra living area space.
Not Knowing What to Change
If you can't afford to replace a hideous wallpaper in the bathroom now, it might be worth to live with the ugliness for a while. It is better than getting into a house you can't afford at present. If the home otherwise meets your needs regarding the grand things that are difficult to alter, such as location and size, don't let physical flaws push you away.
Besides, doing home renovations yourself, even when you have to hire a contractor, is often inexpensive than repaying an increased home value to a merchant who has already done the work for you.
Being Blown Away at First Sight
Minor fixes and cosmetic polishes are loose tricks used by sellers to play with your emotions and extract a much higher price. If you are on a budget, look for homes whose full potential you don't realize. Also, as a first-time homebuyer, pursue a home that you can add value to, as this confirms a bump in equity to help you elevate the property ladder.
Having Insufficient Funds
Buying a new home is not a sprint. It is a marathon that requires diligence, endurance, perseverance, and deliberate financial planning. Waiting until you are financially sound to buy a home will set you and your family up to win for decades to arrive.
Saving so much money might seem impossible at first. But, a careful budget planning for six-months or one year can do you wonders. It will be all it takes to give you the capital you need.
Underestimating Your Agent’s Role
While this is your first time at home buying, your agent has been around the block a few times, literally. Your agent’s expertise goes well beyond their ability to find you the perfect house. They explain offer terms carefully and patiently so that there are no misunderstandings between the two of you. They will walk you through the home inspection process to solve any discrepancies. Moreover, they help you in understanding closing requirements. Your agent acts as a knight in shining armor, so lean on them during the entire process.
Settling for Less
Do not decide to go for a two-bedroom apartment when you know you're planning to have a kid and will need three bedrooms eventually. Don't settle for a condo just because it is cheaper than a house. It is correct that you have to make some adjustments to be able to afford your first home, but don't do a settlement that will be significant stress later.
Neglecting a Home Inspection
It is enticing to think that you are a homeowner the moment you finalize everything, but not so fast – before you close on the sale, you need to know the condition of the house. You do not want to get stuck with a money pit or with the stress of performing a lot of unexpected repairs. It is essential to keep your feelings in check until you have a full picture of the house's physical state. The assurance of your potential investment will help you avoid making a serious financial mistake. This is where a home inspection plays a vital role. Always consult a professional inspector to ease up the process. It will save you time and energy from examining every nook and corner in the house.
Not Thinking About the Future
It is tough to predict the future of your chosen neighborhood. But if you pay attention to the information that exists now, it can help you evade unpleasant surprises down the line. Purchasing your first ever home can seem to be worrying and overwhelming, and it comes with its share of possible pitfalls. If you are aware of those and proactively tackle them ahead of time, you can save yourself from a lot of unnecessary trouble. It will keep you from spending an abundant amount of money. For many people, investing in a home is the largest acquisition they will ever make, but it need not be the most difficult.
Whichever suburb you go to, assure yourself you are getting the best service in Calgary. Contact us, and we will ensure your dream house belongs to you in no time!