Buying your first home opens up your world to many opportunities, from customized interior paint to interest rate deductions on your taxes. If you are changing from a renter to a buyer, there are several key mistakes you need to avoid. You may hurt yourself emotionally or financially if you do not prepare properly for a potential home purchase.
Unaware Of Your Purchasing Power:
Before you even attend an open house, you should visit a banking lender. You need to know how much money a bank will lend you for your first home. Be prepared and bring all of your income and financial information with you. Lenders look at credit history, debt-to-income-ratios, employment history and several other factors to determine a loan amount. This prequalification process gives you a realistic purchasing range when you look for homes. Work with a real estate agent afterward to pinpoint properties in your desired area. When you know how much you can afford, you can narrow down the selections without high price disappointment. A good place to start is here: http://portal.hud.gov/
Lack Of Regional Research:
First time homebuyers that are moving to a different city, such as from an employment transfer, should research the area before committing to a sale. For example, research crime rates and the local school system’s grading success. Go online and look at satellite maps of the residential areas you are pinpointing for a purchase. If you find that a busy, commercial street flanks your intended home, start to look for alternative properties. Noise pollution and crime may be too close to this property. It is best to physically drive and walk around the new area before purchasing. Observing neighbors and the region’s culture helps you decide if this neighborhood fits with your own needs.
Forgetting About The Extras:
Purchasing a home is not just principal and interest. You must add property taxes and home insurance to the monthly payment for a true account of your property purchase. Ask your real estate agent to give you an estimate of all the costs associated with a property when you find a desired home. Along with taxes and insurance, a home association fee may be required. These fees are commonly pooled together between several different homes to pay for landscaping, water, sewer or recreational facilities.
Opting Out Of A Home Inspection:
A home inspection is critical for your financial peace of mind. Before purchasing the property, a certified home inspector walks through the house and highlights any damages, from a broken kitchen faucet to faulty electrical wiring. If the home has too many problems, you should search for another property. If you do not have a home inspection and buy the property, you inherit any problems within the structure.
No Home Security:
After purchasing your new property, it is critical to protect it from burglary. Look for your local installer, for example, if you’re located in Montgomery, search for your local ADT home security Montgomery installer and install an alarm system ASAP. Criminals look for easy targets and an open window is perfect for a quick burglary. Do not place flashy objects in plain view, such as a laptop computer near a window. Keep your valuables out of sight to prevent criminal temptation.
Owning your first home is a joy, allowing you to decorate and entertain friends as you desire. Be prepared and choose your new home carefully to avoid any disappointments or high repair bills.