So you have finally decided that you are buying a home this year! Perfect, you will finally have a residence that you can call your own; a place that you will be able to decorate exactly as you want, and you will not have to listen to the woes of landlords. But before you can enjoy all of this, you have to go through what can be an exhausting process.
A reputed real estate agent told us that blunders made by first time homebuyers are very common, especially if you are going through the process for the first time. As a buyer, you must prepare yourself and be aware of what you may encounter along the home buying road. The agent went on to add that people spend a considerable amount of time in searching for a mortgage deal, but they hardly invest any time when comes to finding out more about the process.
We interviewed a couple of professionals in the real estate industry, and here is what they shared with us.
Buyers are not aware of their budget
The costs incurred in buying a home are not just the monthly payments that you will have to make. They are a lot more than that and include a down payment, title transfer fee and other closing costs.
A representative at a financial institution stated that a buyer should determine the down payment he can afford. Accordingly, the lender will let him know the maximum amount that the buyer will be given as a mortgage. Once this is known, the buyer should search for houses that are under the total loan value.
Also factor in taxes in the situation; they may be a lot more than what you want to spend.
Buyers do not know much about the area
In the real estate industry, location is of prime importance and home values depend on it. Before you select a house, you should find out the pros and cons of the locality. Also ask your agent about prices of other similar homes in the same area, and then decide if the house you are buying is worth the money or not.
Buyers skip home inspection
A home inspection is essential because it can provide you with an actual amount that can incur for repairs. The home may be affordable, but what if the amounts required for repairs are excessive? It just would not be worth it then.