Saving money is not about being able to buy bigger and better things. It is about being prepared to take care of your family.” -Dave Ramsay
Purchasing your very first home is known to be one of life’s sweetest accomplishments. In fact, it is a success so sweet on its own that it is considered as a milestone in life by many for the simple reason that not all individuals would be able to afford a home in their adulthood–or even in their lifetime.
Unfortunately, buying your very first home is often met with complex challenges of which you have to overcome in order to be fully happy and satisfied with your purchase. Location and size aside, one of the most pivotal aspects to consider when buying a home is your budget. In other words: how much home can you truly afford?
Without a doubt, one of the most crucial considerations in buying a home is the pecuniary aspect–particularly if it is your first time. Unfortunately, when it comes to buying a home and determining the kind of budget you have, there is really no room for error–lest you actually have the finances to cover and afford it. While there are some lessons that are better learned through trial and error, buying your first home is not one of them. Home buying might be a different experience for everyone and while you might not be able to get everything right in your first buying endeavor, that does not mean that your errors should be costly. To address that, it is best if you read and explored what the most common mistakes homebuyers make when buying their first home. So, whether you are looking for an Ametta Place for sale or another place elsewhere, here are some of the buying mistakes you should be sure to avoid in order to avoid a potentially costly result:
1.) Overshooting your original budget
Like most potential homebuyers, your first order of business in your home buying endeavor is to determine how much home you can afford. This is what experts would often refer to as an initial budget. However, while this might be the first budget you have drafted up, it should be the only budget you should to refer to in your search for a home. Unfortunately, some homeowners tend to make concessions when they come across pricey properties that they do like but fall outside their budget range. As a result, they would inflate their budgets in an effort to make the necessary concessions for a home they would not have otherwise been able to afford. In your home buying endeavor, it is critical that you remove any and all emotions from any discussions of money. This is to bar you from falling in love with homes that are beyond your budget and help you stay firm about your original one. Sure, you might think that you will be able to afford a few extra hundred grand more, but remember that life is uncertain. What happens if you lose your job? Your salary dips? Or worse, an unexpected illness grips one of your family members? How would you be able to get by then?
2.) Failing to take additional costs into account
First time homebuyers tend to be very myopic about their home buying endeavor insomuch that they do not really consider other expenses that might come into play after they have successfully bought a house. Apart from taking out a loan and paying mortgage, you need to consider the closing costs, property taxes, appraisal fees, homeowners insurance payments, escrow fees and moving costs. Beyond that, you have to account for your homeowners association fees which you would either pay monthly or yearly and of course, your home furnishings. After all, if you have just moved in, you would likely need to fill up your home with pieces of furniture as well. However, do not make the mistake of overdoing it. Remember, you do not necessarily need new everything. If you can still manage with your functional, albeit old, furniture then make do with them.
3.) Losing sight of your plans for the future
Take stock of where you are in life at the moment. Where are you in career and where do you want to be in a few years down the road? Where do you realistically see yourself ? These are just some of the imperative questions to ask yourself before you commit to a home purchase. Apart from that, you should also consider whether or not you would be moving in the near future. If you are, then a home purchase is probably not the best investment at the moment. Sure, paying rent may not exactly be fun but you should not constrain yourself into the responsibilities of home ownership as well. Similarly, you should consider how your family would look like in a few years. Do you see it growing? If you are planning to have kids, then that should be a pivotal factor in your choice of a home. Be realistic about the kind of home you are looking to buy. Apart from your budget and the size, you should take into account whether or not it would be realistic to designate bedroom spaces to adult kids who might be moving out of the family home soon.