Buying your first home is a major milestone. It can also be one of the most stressful things you ever do, according to a survey of homebuyers. While you might not be able to eliminate all of the stress of buying a home, there are a few things you can do to make the experience more enjoyable overall and to reduce any feelings of remorse after all is said and done. As you go through the process of buying your first home, here are some mistakes to avoid.
Not Shopping Around for a Mortgage
You have a lot of options when it comes to getting a mortgage, so it really does pay to shop around. The interest you get offered by one lender or bank might be significantly less than the rate offered by another, leading to a considerable amount of savings over the life of your home loan.
There are also a variety of mortgages available, and you might qualify for one that lets you make a smaller down payment or that offers other advantages. Talk to your real estate agent to get an idea of what's out there and to help you make the right decision when it comes to financing your home.
Not Knowing Your Price Limit
The amount a lender says you can borrow might not line up with the amount you're comfortable paying each month for your home. It's a good idea to go over your finances and review your budget before you set a price limit for yourself. If you have other loans, such as student loans, or have higher-than-average monthly expenses, you might want to buy a less expensive home compared to someone with a similar income and fewer monthly obligations.
Knowing your budget before you start shopping around for a home will also keep you from falling in love with a property that doesn't work for you financially.
Not Knowing the Difference Between Wants and Needs
If you've ever seen an episode of "House Hunters," you know it's all too easy for homebuyers to confuse "wants" and "needs" when they look at properties. A bathroom with blue walls is an example of a "want" while a house with two full bathrooms is an example of a "need." You can easily paint the walls blue after your purchase but it can be more challenging to add a second bath to a house once construction is complete.
Skipping the Home Inspection
Even if the house you're buying is completely new, it's a smart idea to schedule a home inspection before you finalize the sale. Some first-time buyers skip the inspection, assuming that everything will be fine with the property.
The most important thing a home inspection does is let you catch issues that you can fix before you close on the sale. It takes time and costs money but scheduling one will help you save money in the long run.
Not Asking Questions
When you're a first-time homebuyer, no one expects you to know everything or to have all the answers. In fact, the people you work with, from your real estate agent to the custom home builder, are likely expecting you to have questions.
No question is too dumb or insignificant when you're buying a house, so go ahead and ask away. Your home buying team should be all too happy to answer you and guide you through the process.
Lancia Homes has been one of the best home builders in Fort Wayne, IN since the mid-1970s. If you're about to embark on a homebuying journey for the first time, get in touch with us today to find out how we can help you get into your custom home.