By: Paul Simpson
17 May, 2018
1. You fall in love with the place instantly
This is where most first-time home buyers become too vulnerable when they do their house hunting they fall in love with the place instantly without evaluating the overall condition of the house. Avoid being smitten on your first house visit and take control of your emotions even if it has a huge yard that you dreamt of owning. Remember, no matter how convincing that little voice at the back of your mind is telling you that this could be your perfect home, still reserve some doubts for any issues or risk factors that may be hidden and it is your responsibility to disclose them by performing your careful inspection. Take time to read the fine print before committing.
2. Going beyond your financial capability
Before you finally commit to the seller, ask yourself, “Do you have enough funds?” or “Can you manage to pay diligently those monthly repayments. Remember, there are other hidden costs that you will need to settle before you get the chance to move in that house such as fees required by your mortgage representative for application, valuation and settlement fees. Always allocate some funds of the unexpected, so that you won’t be surprised in the end. Purchasing a house, whether buying it in full or applying for a loan needs proof of your financial stability, so it is best you do your own personal accounting of your income and expenses to avoid being broke if your monthly paycheck cannot sustain all the bills you have to pay.
3. Doing it on your own
House hunting can be quite exhausting and doing it on our own sometimes doesn’t provide the best results like finding the ideal location or investing your money to a marketable property in case you have to sell it in the future. Don’t carry all the workload on your shoulders, hire a property expert who has a good track record of providing excellent services to all buyers. A property specialist will do all the groundwork for you and even extend his professional service in areas like finding the most affordable pest inspector for your new home or giving you expert advice to have the house checked for any faulty wiring or structural defects before signing any contract of agreement.
Additional tips and warnings:
Manage your finances first before you even commit to any house for sale to avoid the possibility of facing foreclosure in the event you cannot pay your mortgage payments. Track your resources such as computing what comes in as part of your regular income like salaries or wages, additional income from part-time jobs if applicable and any loans you have at the moment. If your final assessment shows you can’t afford to buy a home yet, take this as a warning and start saving first for that dream home, rather than get a home loan and face a huge debt afterwards.
Don’t let emotions take control of your decision making and if you can’t make a wise choice for now, consult the services of a property specialist for your peace of mind. If you are becoming a victim of any of the above mistakes, step back and gather your thoughts. Sometimes, pausing for a while from any stressful task will help you think clearly. Weighing things on both angles, both the positive and negative will surely lead you to the right decision.