Homeowner's Demise: What These Homeowner's Wish They Did Before Buying
A home will be one of the biggest purchases you will make in your lifetime. This is why most homebuyers often take months, sometimes years, before they can make a decision. You should also be putting the same amount of thought in your decision.
If you have already set your mind on a specific house but you want to be absolutely sure you are doing it right, here are some things that you should know before buying.
1. Not hiring a professional
The internet is a great resource for all things. But you also want to get information from someone who has done it many times. In this case, a real estate agent. They clear up any questions you might have and provide you with valuable insights that no article from a Google search result can.
But then again, finding a real estate agent is a lot like dating. You need to find one who matches your preferences --one who works in your best interests, not against it. It’ll be a long process so you want someone that you like, not someone you dread seeing every time.
2. Not looking deeper
The house may look good on the outside but is it good on the inside? By that,we mean the basic foundation that keeps it running like the water system, HVAC systems, appliances, etc. There’s no use having a beautiful marble kitchen if the fixtures in the kitchen need constant repair.
This is a very common mistake home buyers make and they end up paying more for updating the house, rather than enjoying it. For these situations, it’s advised that you get a home warranty so that every time a system or appliance needs checking or repairing, you can have someone take care of it right away.
3. Letting your emotions get to you
It can be easy to get emotional about the buying process, especially when a house ticks all the boxes on your list. You’ll do anything just to get the deal. The end result is that you overpay for the house.
First of all, don’t let your enthusiasm get to you, especially with the homeowner around. Try to maintain a rational mindset and treat this like a business purchase. Negotiate with a fair price so you don’t end up with buyer’s remorse.
4. Settling for one lender
Don’t just settle for the bank you’ve been with for 20 years. Look at your options --there’s a lot that probably offer better rates than your current lender. You will be paying mortgage for the next 20 years or so getting a good deal is great because interest rates can go really high.
Speak with your real estate agent about this. They’ll be able to help find options that best suit your financial capacity.
5. Buying a home you can’t afford
Mortgage payments can get really expensive. They take the biggest chunk out of your paycheck and you don’t want to feel that sting every time that time of the month comes. Sure, those nice wooden floors are great and the spacious garden in the back make for a great treat in the afternoon but what good is that if you feel stressed and resentful, and borderline scraping by just to pay your mortgage?
Never, ever buy a home you can’t afford. Stick to a budget and you'll be happier in the long run. It’s less stressful and you won’t end up with bad credit that could hurt your chances for a financially stable life in the future.
6. Correcting credit error reports
Having a poor credit score means you get higher interest rates. But not all credit reports are accurate. Make sure that you are always updated by ordering a free credit report every year and disputing any errors. This small step can make a huge impact on the mortgage payments you make every month.
What was the biggest mistake you made with your previous home? Share your thoughts in the comments below.