If you’ve never purchased a home before, you might not know how easy it is to mess up a home purchase. There are many factors that first time home buyers especially fail to remember when looking for a home for various financial and emotional reasons. Here are the seven ways you can easily mess up your first home purchase:
One of the biggest mistakes first time home buyers make is to get emotional about the house they are purchasing. The reason why this can be bad is it often leads to home purchases that are out of the buyer’s price range. Figure out what features you love about that house, and look for those features in another house that’s in your price range.
Buy a Home that Needs Improvements.
Right now, it’s a buyer’s market, meaning there are a plethora of homes that are available. Don’t get stuck with a home that needs major improvements, because you will be able to find another home that is perfectly suitable. Repairs will cost you a lot of money, which will lead to you having a decreased savings.
Forego the Home Inspection.
You already saw the home and you think it looks great, so you decide to forego the home inspection so you can move in sooner. Good decision, right? Wrong. You need to have a professional assess the state of the home and tell you whether or not any repairs will be needed now or in the immediate future.
Forget about Maintenance Costs.
Remember to factor in maintenance costs when you are planning your home budget. You should plan to spend a few thousand dollars every year you own your home on routine maintenance.
Forget about Property Taxes.
Many first time home buyers forget to factor in property taxes, which can be extremely high in certain areas that have a higher cost of living. Ask your lender what property taxes you’ll owe on your home before you sign any contract. If you don’t, you could find your savings dwindling quickly.
Spending Too Much Money.
This is a no-brainer. Don’t spend too much money on your first home. You need to remember that you’ll most likely be making these payments for 30 years, and you’ll still need to save for other expenses such as college, medical bills, and retirement. Buy a home within your price range, and you’ll be much happier in the long run.