The Top Four Mistakes First-Time Homebuyers Make

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“You cannot have everything you want, but you can have the things that really matter to you.” –Marissa Mayer

 

Buying a first home in today’s real estate market should be relatively easy. However, for those who are going into the venture sans the experience, it can be rather confusing and a tad bit frustrating at times. As of recent times, the housing market is showing no signs of declining and slowing down—in this regard, many prospective homeowners would feel incredibly confident about the timeliness of their purchase should they choose to buy a house now. However, if one travels through the unchartered  (in the case of first-time homebuyers at least) paths of buying and acquiring homes, mistakes and oversights are easily made. If you are a budget or have saved up for this monumental milestone (as is the case with most first-time homebuyers), you cannot really afford to make any error that would inevitably lead to a financial blunder.

Regardless of how small a financial mistake might be, making the wrong move in a saturated market would often lead to pecuniary remorse and inevitably, home buying misery. Unfortunately, first-time homebuyers are predisposed to committing these errors if they are left to their own devices and are armed with insufficient information. In any case, you can mitigate the chances of committing these lapses if you are equipped with prior knowledge prior to making your first purchase. Whether you are eyeing your first home to be in Avida Towers Cebu or elsewhere, here are some common first-time homebuyer mistakes you ought to avoid:

 

Buying a home that is too expensive

What is expensive and cheap is relative to how much the homebuyer actually earns. However, regardless of what kind of home you are looking to purchase, you should always remember to stay within your budget. How much you can afford largely varies but it depends on your debt to income ratio. Remember, you are not only going to be spending for the home alone, you would also have to take into account your monthly utility bills, groceries, insurance, etc.

Not hiring a realtor

As this is your initial venture into buying a home, it would bode you well if you worked with a professional whose expertise is in how real estate works. More often than not, homebuyers would rather forego the assistance of a real estate agent thinking that this is just another expense. Sure, it might be another aspect to pay for but think of it as a worthy investment. After all, you would stand to spend more should you purchase a home without the aid of an agent.

Not leaving room in the budget for other expenses

Unlike renting, owning a home would mean that if something breaks, you have to fix it. However, most first-time homebuyers do not seem to realize this. As a result, they would often not leave any room in the budget for any other expense. Your budget should not only comprise of what you pay for the initial down payment of your first home. In fact, it should cover a myriad of things. In this regard, you should also ensure that you leave enough to have extra money each month should you ever have the need for it.

Putting too much or too little down

Coming up with the down payment is already a major challenge when it comes to buying your first home, so defraying most of your home’s total price should be a good thing, right? Not necessarily. Putting up too much money for the down payment would cause a severe imbalance on your money savings and as a result, you may end up bungling your monthly budget. In this regard, you should not be overeager about paying up majority of your first home’s total price. Instead, pay just enough that you would still have a little legroom in your monthly budget to ensure you can cover any other expenses should you need it. Remember, you cannot always plan for every contingency, so should an emergency happen, you want to be adequately prepared financially.

 

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Home Buying 101: Five Questions You Need to Ask Before Buying a Home

“Twenty years from now on, you will be more disappointed by the things you did not do than the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.” –Mark Twain

 

Buying a home, regardless of where it might be, is a keystone of wealth. As it is considered a universally fundamental need by all of us, it is understandable that a lot of meticulous thought goes into buying one—particularly if it is your first flat. Furthermore, as your home would probably be one of your life’s most significant and expensive investments, it would only make sense to ensure you get the very best for what you can afford. In any case, whether you are planning on buying a condo in Avida Towers Cebu or elsewhere, here are some questions you should be asking:

Do you offer discounts

As most developers are looking to close the deal with prospective clients and homeowners, many of them are more than willing to shell out discounts. However, you do need to have a flair for negotiation. Do not hesitate to ask for this or you might just miss out. Alternatively, while there is no discount, there might be other offers and incentives such as pre-selling promotions. In some cases, your unit might come with free furnishings depending on where it is.

Is the reservation fee refundable

If you do not wish to incur penalties or other incidentals, ask your developer whether the reservation fee is refundable. After all, you would not want to waste money should you decide not to push through with the sale. Elect to have it in writing so that you have a written proof. Incidentally, knowing whether a reservation fee is refundable or not will tend to affect your final decision in choosing a home as well.

What are the standard finishes included?

While your developer is going to inevitably show you model houses and units, you cannot reasonably expect that your finished home would look precisely like them. They are just a preview of what your homes might look like once it is finished. To ensure that you and your developer are on the same page, it is best to know what is included in the property you are buying. This means taking note of the finishes you might often overlook such as the kitchen accessories, window types, type of floor tiling, door design and the like.

Can I customize my unit?

Everyone wants to give their homes a bit of character and personality, but this is not exactly possible all the time. Ask your developer if it is possible to incorporate some changes into the design of your unit and if you can change some of the layout. If you have bought the property during the pre-selling stage, there is a likely chance that it would be accommodated during the construction, but it usually comes at an additional cost.

When will the building be fully completed?

While the date of completion is not a certain date, you should have an idea of when your developer expects to complete his project. In this regard, you would be able to adequately plan your move-in and expedite the process as well. Furthermore, if you move in without the entire building being finished just yet, there is a likely chance that you would be dealing with the noise and distraction of the construction work going on outside. Apart from knowing when your unit would be finished, it is also a good idea to ask when your developer reasonably expects to finish the building as well.

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