Are you a first time buyer and in the process of purchasing your very first home? Although purchasing a home can be fun and exciting, there are many red flags you should watch out for along the way to ensure your transition is smooth.
- Spending Too Much
It’s very important to take into account what you can afford on a home. You must be realistic when deciding upon a price, due to their being other expenses along the way and some being unplanned. Just because the listing price says one thing, doesn’t mean that is all you are going to have to pay.
- Spending Too Little
Although you don’t want to pay over your budget for a home, you also don’t want to pay too little. Spending too little on a home may seem like a good idea at the time, however your chances of outgrowing it are more likely. The transition costs between homes can be pricey within itself, therefore choose wisely when you plan your budgeting.
- Buying With Your Heart
It’s really important not to let your heart get in the way of your decisions while deciding upon a house. Yes, you want to love your new home and all that it offers. However, think reasonably and plan for the future. Is this home going to be perfect for expanding your family? Is it close to a busy highway? Visit your potential home numerous times before closing to ensure that you not only love it, but it will be the best fit in the long run.
- Missing Hidden Closing Costs
As I mentioned before, it’s important to take into account the closing costs when purchasing a home. Approximately 1.5-4% of the final sale price can be for closing costs. Take into consideration your relators commission, lawyers fees, transfer taxes, etc. Doing so will not only prepare you for the unexpected, but assist you with your budgeting.
- Not Doing Your Research
Do your research! When it comes time to purchase a new home, you should thoroughly have an idea of what you are looking for. If you don’t do your research, it’s like buying a home blindfolded. Don’t let the peer pressure of others get in the way of making the final decision. Perform background searches on the house, property, neighborhoods, etc. Therefore you are fully aware of what this new potential purchase will in tell.