While on the hunt for a potential home, you may end up falling in love with a house that is not right for you. That's why it is so important that you don't make any of these mistakes, which can turn a home purchase into a regret.
Not Assessing Your Budget
A common mistake with first time homebuyers is basing the price range of their home on the size of the loan they are pre-approved for. While this number is a good idea about how much a bank will give you for a mortgage, you should not be searching for a home near the top of the price range.
Your pre-approval amount is based on factors such as your current income and other debts that you have. What it doesn't factor is your overall budget, cost of utilities, property taxes, insurance, and maintenance that need to be done when owning a home. You must start putting together all of the potential costs of owning a home, and seeing how those play into your monthly budget. You may discover that a home that is at the top end of your pre-approval amount may not leave you with the money you want to set aside for emergencies.
Not Considering Future Needs
You must also look at what your needs will be in the future, not what they are right now. For example, a couple with dual incomes may be able to afford an expensive house at the time, but what if they decide to have kids and have one parent stay at home as the primary caregiver? Long-term decisions like this could easily make the home no longer affordable to live in. The same logic can be said about the size of the home, and not getting a home with enough bedrooms to fit the needs of the family you wish to have in the future. You must think 5, 15, or even 30 years in the future when you look at your needs.
Not Getting A Home Inspection
A home inspection may not be required by your lender, but it is an educational experience that will teach you about what goes into taking care of a home. In addition to finding out potential things that are wrong with a home, it will let you know about potential problems that could be costly. This includes things like needing to replace an aging appliance, having the mortar tuck pointed, or knowing that the roof will need to be replaced in the near future.
For more insight about mistakes that can be made, work with your real estate agent for assistance.