Buying a home for the very first time can be exciting and eventful. Since it’s a life-changing investment, every new buyer expends a lot of time and effort toward it. However, first-timers are also prone to making mistakes because they don’t know all the ins and outs of the real estate market or the buying process.
Buying mistakes can cost you a lot. So, it’s crucial to be aware of some of the most basic missteps.
Because you can’t wait to have your own house, you may rush into a decision without actually verifying how much you can truly afford. This can lead to a financial disaster when you realize too late that you don’t have money to continuously pay for the property.
Before shopping for a house, make a list of your monthly expenses, which may include rent, car expenses, student loans, groceries, credit card bills, and health insurance. Once you subtract all these from your monthly income, you gain a general idea of how much you can spend on a house. This will help you narrow down your choices based on your budget.
Not Getting Pre-Approved
Being pre-approved for a loan is one of the initial steps to buying a house. You need to first gain an idea of how much a bank will lend you. Otherwise, you will waste a lot of time putting in an offer on a home only to realize later on that what the bank can lend you doesn’t match your expectations. You should also improve your credit score before house-hunting because this can significantly affect your chances of getting a good mortgage interest rate.
Forgetting About Additional Expenses
Remember, the cost of the property isn’t the only thing you need to pay. There are additional expenses you must address once you become a homeowner. Among these are property taxes, home insurance, and maintenance. Because you will be solely responsible for these expenses, you need to ascertain your post-purchase budget.
Being Too Choosy
While it’s okay to want to find the best house, you need to understand that you will have to compromise on some aspects when buying for the first time. It’s advisable to make a list of all the features you want in your house, but don’t be so picky that you are unwilling to forgo some of them. It’s unlikely you’ll get everything you want in a house if your budget is inflexible. It’s best to prioritize your desired features, essentially determining what you can live without.
Navigating the Somerville, MA real estate market requires market savvy, planning, and wise decision-making. This is why first-time homebuyers should seek the assistance of professionals who can advise you every step of the way. Call Buyer’s Choice Realty today for a no-obligation consultation about what the Somerville, MA real estate market has to offer as well as learning more about our exclusive buyer agent services. Our Office: 978-468-2138.