So, you have saved up for your housing deposit and are ready to start house hunting? But, you are nervous because you know that looking for your dream home can be an emotional process. Because of the emotions that are involved with house hunting, many people make the same common mistakes during the process.
1. Not Knowing What You Can Afford
Buying a house above your means financially will cost homebuyers in the long run. Unaffordable mortgage repayments can place lots of stress on your budget, expenses, and overall finance. And it is a lesson that many learn too late in the process months and/or years after they bought their home.
To avoid this common mistake, estimate and budget what a month will look like with different mortgage repayments calculated into the budget. Don’t forget to account for interest. Review and determine which budget and overall housing price is the most affordable and attainable for your lifestyle and search for homes below and at that price range.
2. Not Getting Preapproved
Mortgage preapproval is a vital step in the home buying process. This is because lenders may not approve you for the amount that you think you can afford due to factors such as bad credit, debt, or unstable income. Not getting preapproved before searching for a home can be a waste of everyone’s time, because the bank may not approve you for the funds you expected. Therefore, it is very important that you get preapproved.
3. Looking at Just One House
It is important to shop around when looking for a home. Even if you fall in love with the first house, see what else is out there because there may be a house that is even better and more affordable. By continuing the house hunting process, you are less likely to make a desperate, rash choice.
4. Focusing Too Much on the House
It is important to avoid focusing solely on the house. Doing so will lead to you overlooking the neighborhood and surrounding area. If you are moving in with kids, research the schools nearby and think about how they will get to school – walking, taking a bus, or carpooling. Is the house on a busy street? Is it close to a grocery store? These are all important factors to consider when looking at potential homes.
5. Not Thinking Long-Term
Buying a home that is perfect for your current situation right now is another common mistake. Think about 5 or 10 years from now and where you want to be. Do you plan on having kids and/or getting pets? Is there a chance you will rent out a room a few years from now? Would your parents need to eventually move in? It is important to think in the present but also long-term when house hunting.