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Buying a house for the first time? Then be careful of the following mistakes:
1. Choosing an Ideal Housing Price out of Nowhere
The house you can afford will depend on your current income, debt, average households expenses, and the interest on the mortgage. Therefore, you must take all these calculations into consideration before deciding on a price tag for the house. Most prospective homeowners pick a random number out of nowhere as their ideal home price. This is not good when you have to shop for a mortgage. Buying a house is a serious issue. Therefore, don't speculate your affordability.
2. Not Getting Prequalified for a Mortgage
Some homebuyers are terrified of getting turned down for a mortgage, so they never go through the prequalification process for a housing loan. This is a big mistake. Getting prequalified for a mortgage is a good way to get a professional estimate of how expensive a house you can afford. Also, it can expose potential weaknesses of your mortgage application in advance. Once you get approved, you can shop for a home. Don't do the latter without the former. Mortgage preapproval can potentially save your finances in the future.
3. Being Deceived by the Looks
Some first-time homebuyers are too quick to get swept away by the looks of a property. If a house you go to look at has a heated swimming pool or a cool chandelier, for example, first time homebuyers are likely to be swayed. Don't let the looks fool you. Do not make your decision based on decorative things that you can easily upgrade to with a little money later. Judge the value of a property based on important things such as location, number of bedrooms, and overall value. Even if everything you want in a house is present, but the interior decoration is awful, always remember that you can change how the house looks. So, don't let this figure too highly in your decision to buy a house.
4. Failing to Inspect
Don't ever buy a house without inspecting it first, even if the house in question is brand new. Original owners and real estate agents can easily hide serious issues from buyers who don't inspect. Make sure everything the original owners claim is there. Inspect all the necessary aspects, and also research the land the home is built on if possible. For example, are there parts of the land prone to floods? You should know these things before you buy the property.
5. Not Considering Additional Expenses
Don't forget to consider all the expenses of being a homeowner when you calculate if you are able to afford a house. In addition to paying off the mortgage, home owners have to pay property taxes, maintenance fees, utility bills, and home insurance. All these expenses that you never had to worry about as a renter should go into your budget when deciding to buy a home. You must expect the costs of property taxes and home insurance to go up each year along with inflation. They never come down. You should ask yourself if your budget can handle mounting expenses such as these when buying a home.
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