5 Mistakes to Avoid When Buying a House
Buying a home is a one-time investment. It’s important you put a lot of thought and effort into it. You can find a lot of help online about the many things you must take care of along the way, but what about some of the mistakes you may commit? Avoiding those is equally important, if not more so.
So are you planning to buy a house in the future?
If so, here are 5 things to avoid:
1. Don’t buy if you plan to move
Here’s news for some. You don’t have to buy every house you live in. Although this piece of advice may sound trivial, you’d be surprised at how many people commit the simple mistake of buying homes when they know they will move out in the future.
If you want to still do it as a nice investment opportunity, be sure to know everything you can about the housing market in that area. You don’t want the value of the property to depreciate once you plan to sell the home and make some profit.
2. Don’t cut back on the down payment
Paying a hefty down payment can never be a bad decision. Even if you want to buy a home through a mortgage, be sure to save as much as you can in advance. Skimping on down payment will only cause you trouble in the long run.
The more you hold back in down payment, the higher you end up paying in terms of monthly payment. Even if you save some money by skimping on the down payment, you can lose it in interest. It’s not a good bargain.
3. Don’t skip a home inspection before the purchase
Home inspection is one of the most crucial aspects of the pre-purchase process. No matter how good the home looks on the outside, it can be a mess on the inside. Combined, the tiny issues can wreak havoc on your budget.
If you want to buy a home, you need to hire a professional home inspector. Those who think they can do without a home inspection are just wrong, plain and simple. One helpful tip is to ask the seller to cover the cost of the home inspection. That’s possible too.
4. Don’t randomly choose a real estate agent
It’s not easy to choose the right real estate agent. Often people end up with someone they’re not comfortable with or don’t trust. You have to do your research beforehand.
There are many national non-profit agencies that can help you find the right realtor. The right real estate agent is not just friendly and accommodating but are also experts in their field. Their knowledge and personal experience, combined, can find you the house of your dreams.
5. Don’t ignore the hidden costs
If you think buying a home involves replacing your monthly rent payment with a monthly mortgage payment, you can’t be more wrong. Buying a home also involves a ton of other costs that may not be a part of your initial estimate.
From maintenance costs to utility and from taxes to insurance, the average monthly payment can end up being much more than your monthly rent. Make sure to find a place in your budget for all that.