Buying a Home? Don't Make These Mistakes

Buying a new home can be pretty exciting, but it’s also fair to say that it can be a daunting process, especially if you haven’t done it before. If you aren’t careful, you can end up buying too much house for your budget, buying a property that isn't really right for you or living in a place that you hate.

Of course, all of this can be avoided if you do your homework and you avoid making the mistakes that many other people have made before you. With that in mind, here are some home-buying mistakes that you should try really hard not to make:

Not Checking Your Finances

The first thing you should do when you make the decision to buy a new home is check out a good housing loan calculator, so you know exactly how much that dream home will cost you each month. If your monthly mortgage is going to be more than 28 percent of your gross salary each year, then you should seriously consider whether it’s right to proceed because, once you add in property taxes, utilities and the cost of living in general, it could quickly become unaffordable.

Not Deciding Whether Space or Location Matters Most

One of the most annoying things about buying a new home is that it is rarely the case that you can find the perfect house with plenty of space in the perfect location that you’ve always dreamed of. That’s why it is always a good idea to sit down and really think about whether space or location is the most important factor for you.

If you know in advance which you value most, then you won’t waste so much of your time looking in areas where you’ll only be able to afford small properties or looking at large properties in areas you know you would be unhappy in, it will also help to keep you away from the temptation of spending more than you can really afford. Buyers remorse is a terrible thing, and although this might seem like a simple thing, it can really help you to avoid that sinking feeling when you realize you’ve chosen wrong.

Committing Too Soon

Some people get so carried away that they almost pounce on the first decent place the realtor shows them. This is perfectly understandable, especially when we’re talking about first-time buyers, but it really isn’t smart. You see, there are lots of amazing houses out there, so by committing to one place too soon, you could be missing out on an even better property around the corner. Not only that but if you commit to a property before you’re really ready, it’s really easy to get into financial trouble because you haven’t really thought through the implications of owning the place and how much it will cost you. So, take things slow, scope out the market, get your finances in order, and then act.

Not Considering Fixer-Uppers

Okay, so not everyone has the time, nor the inclination or the skills to buy a fixer-upper and actually y’know fix it up, but even if you think that’s the case, you shouldn’t dismiss the more dilapidated homes within your chosen area. Why? Because you can learn skills and you can hire contractors and not only will your home cost you less, but you could ass literally tens of thousands of dollars to the value of your home in one fell swoop. You’d like that, wouldn’t you?

Not Having an Inspection

This one should go without saying, but if you buy a property without having the place thoroughly inspected first, you are asking for trouble. There are lots of houses that look perfectly fine on the surface, but they have roofs that are just waiting to leak, damp that is on the brink of presenting itself and a whole host of other issues that could make you wish you had never purchased the place in the first place!

Not Negotiating

If your home inspection does find any issues, then you should use those to your advantage and negotiate for a better price. Sometimes, you might be able to get a better price and have the seller fix things; If you don’t at least try to do this, then you are really making a big mistake.

Not Putting Down a Bigger Down Payment

Obviously, if you can only afford the minimum down payment required to get a mortgage, then that’s what you can pay, but if you have savings and you can afford to put down a much bigger down payment for your property, you should probably do it. Why? Because you may be able to access a bigger loan and you will definitely accrue less interest over time. Also, it won’t take you nearly as long to pay off your mortgage and own your own home outright. Basically, the bigger the down payment, the less risk there is for you.

Not Checking Your Boundaries

So many disputes and falling out between neighbors happens due to a lack of clarity as to where one property ends and another starts. It is, then, pretty sensible to check the land registry, so you know exactly where you stand when it comes to property lines. This isn’t important just for preventing disputes, but also because it will show you exactly what you are paying for and that is important.

Not Checking Out the Local Schools

You might not have kids right now; you might not plan to have kids ever, but whatever your parental status is, you will want to check out the schools in the neighborhood surrounding that home you want to buy. Why? Because homebuyers who have kids like to know that there are decent schooling options nearby and if there are, you’ll be able to sell your home for more than you would if there are not. Obviously, if you don't have kids, you might not want to obsess too much over this one, but if you're trying to decide between two neighborhoods and there’s literally nothing else in it, see which place has the best schools and make that your new home.

Not Checking Building Plans

Some developments, such as hospitals, schools, popular chain stores and great coffee shops can add value to your home, but others, such as industrial developments and houses that overlook your own leaving little room for privacy can make your dream home, not only less valuable but also more of a nightmare. That means, before you buy a house, you should always check building plans for the neighborhood. They will let you know if any developments are planned, so you can make an informed decision about whether or not to purchase your home.

Not Saving for Renovations

Even if you plan to buy a home that doesn’t need any work done, chances are that you will find a few things that aren’t quite right, or that don’t match your taste that will need to be addressed. It is, then, a good idea that you have a small savings fund set up to tackle any DIY issues as and when they present themselves.

If you can avoid making these common mistakes, then buying a home should be a breeze for you, and you can rest assured that you have done your best to get the optimum deal for yourself and your family. Let these mistakes happen, and there is a good chance you will be regretting your purchase in a few months from now - the decision is yours.