Buying a house is a big financial responsibility and a huge turning point in your life. It can be a complex process if you're new to acquiring properties and there a few pitfalls you might fall into if you're not careful enough. You, who worked hard and earned enough money to buy home, should keep a keen eye throughout the home buying process to avoid these.
Not setting a budget
When you're setting off to buy a house, it's important to set a budget that fits your financial capacity and actually stick to it. Take into account your current loans, credit scores, and monthly/yearly expenses. Ask your real estate broker about the income requirements that can easily get you approved by the bank or financing institution. Setting a budget early on can help you avoid debt and overspending.
Underestimating the cost of owning a home
It's one thing to buy a home over your budget, but to own a home unaware of the neigborhood's cost of living and the general monthly expenditures is a whole new topic. The financial aspect of buying a home and owning a home are two different things that most homebuyers completely overlook. After you buy house, you'll realize that you have a lot of things to pay for such as mortgage, electricty, credit cards, car loans, taxes, etc. The bills just keep stacking up and the staggering net amount feels so overwhelming, you start to feel a hint of regret in purchasing a home.
It's nice to imagine living in a dreamy neighborhood but it's still best to manage our expectations. When you're initially inspecting the house, try to ask your realtor about the cost of living, taxes, and transportation cost. This will also determine your future lifestyle expenses and can give you an idea on what to expect around the neighborhood.
Ignoring the community and rushing through the process
So, imagine this. You're in the middle of your house inspection and as you take in every detail of them home you start to feel the excitement building up. The house is everything you dream it would be! Instantly, you close the deal. Right then and there, no questions asked and no answers needed. Days pass by and it's move-in day and you're finally living in your dream home!
As you live in your new home, however, you start to feel that the neighbors aren't at all friendly and your whole neighborhood just doesn't match your vibe. You start to see unsafe spaces and the lack of sense of community around your environment.
After all this, it pays off to start paying attention to the community and the house's location during your house inspection. The house might be everything you wanted but if the neighborhood contradicts your energy, it's best to look for another location option.
Not having a real estate broker
If you're dead set on buying a home, don't walk into open house event without having a real estate professional by your side. According to Investopedia, agents are held to the ethical rule that they must act in both the seller's and the buyer's best interests. But you can see how it might not put you in the best bargaining position if you start dealing with a seller's agent before contacting one of your own.
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