You’re in the home stretch. More than 400,000 homes came onto the market for sale in December 2021. You have thousands of options for a great home.
Yet the home-buying process isn’t easy, even as you’re completing the final steps. In order to find the property of your dreams, you need to avoid the most common home buyer mistakes.
How should you save for a home? What properties should you examine? What should you do once you’ve signed the paperwork?
Answer these questions and you can make yourself your perfect home in little time. Here are five mistakes you can avoid.
- Missing Payment Opportunities
Many first-time homebuyers are in a rush. You don’t have to hurry your buying decision. Take some time to consider how you will pay for your home and mortgage.
The Federal Housing Administration (FHA) offers loans with a 3.5% down payment for people with a 580 credit score. FHA loans do require mandatory mortgage insurance, but they can be very helpful if you have weak credit.
The U.S. Department of Agriculture (USDA) helps people move into rural areas. But if you have a low income, you can apply for a loan with no down payment.
If you are an active-duty military member or a veteran, you can apply for a VA loan. VA loans also do not come with down payments, though you do need to apply through a private lender.
When in doubt, you can get money in the form of gifts. Your parents or relatives may be willing to cover your down payment.
- Forgetting About Hidden Costs
You’re not done with your expenses once you buy a home. In addition to your mortgage and insurance, you have to pay property taxes.
You may need to make repairs right away. You eventually will have to pay utilities and maintenance costs as well.
Try to put at least three months of living expenses into an emergency fund. Do not dip into this money for any reason besides emergencies.
You should then have some money saved to cover your additional expenses. You can follow the 1% rule of thumb, saving 1% of your home’s purchase price to cover repair costs. You can also save $1 for every square foot of your home to cover annual repairs.
- Buying a Home That Doesn’t Fit Your Needs
Many people want to buy a large home just because it is extravagant. They say to themselves that they will “grow into the home,” filling the space with a spouse and children.
You should resist this temptation. If you don’t need a lot of space right now, you shouldn’t get a large home.
Pick a type of home that you want. You can consider single-family homes, half-plexes, and duplexes.
Then write down a list of amenities you must have. Your list can include a personal gym, a swimming pool, and skylights.
You should find a home in your preferred category that has most of your amenities. Extra amenities can be nice, but don’t buy a home just because it has a bunch of things.
- Skipping a Neighborhood Tour
You may find the perfect home that meets your needs. Yet your neighborhood may not provide for you. You may be too far away from the office and grocery store, or the schools may not be good.
After you tour a property, you should walk through the neighborhood. Feel free to talk to your would-be neighbors and get a sense of what they are like. Ask them for directions to nearby stores and see if they are close by.
Go online to assess what the noise levels are like. Even if you are away from major roads, you may have noisy neighbors or loud children nearby. You should visit the neighborhood a few times to see what the traffic and noise levels are like during the week.
- Rushing the Moving Process
Take a look at moving companies and start sorting through your stuff while you are looking at homes. But don’t start moving out until you are sure that you will get a mortgage or a house loan.
Consider buying during the holidays instead of now. You will encounter minimal competition and you may receive lower interest rates on your mortgage.
You don’t have to move out once you’ve become a home buyer. You should spend a few weeks packing and rerouting your mail to your new property.
Make sure you tell everyone you know where your new address is. Your friend or family member may become angry if they found out you moved without telling them. This is especially important if you are leaving your hometown.
Avoiding the Most Common Home Buyer Mistakes
Homebuyer mistakes impact all parts of the home-buying process. Do not miss out on funding opportunities. Loans can cover your initial expenses.
Remember hidden costs and save up the money you need to cover them. Focus on a category of properties while keeping important amenities in mind.
Never forget about the neighborhood you are moving into. Do your research on the surroundings. Do not rush your moving process until your finances are secure and your personal life is settled.
Still Have Questions? We Can Help!
Don’t buy a home on your own. Homes by Breann serves the Oklahoma City area. Contact us today.