“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.