So, You’re Ready to Buy a House
You’ve saved up your money, you’ve used the TipRanks’ mortgage calculator to understand your possible options, and you’ve found a neighborhood that matches the lifestyle you want. Now, you’re ready to put in a bid for a place to call your own.
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Congratulations! That is exciting news. If this is your first time buying a home, you probably have a mixture of nerves and excitement pulsing through your mind. There’s a lot to consider. Here are a few common mistakes to try and avoid.
Don’t Take on More Than You Can Afford
This seems like an obvious one, but many people fall victim to this trap. Use the TipRanks’ mortgage calculator to make sure that you’re not going above and beyond what you can afford on a monthly basis. The purpose of this tool is to give you a strong sense of what your monthly costs will look like, taking into account your down payment, loan tenure, and other expenses that are all part of the homeownership package.
You can be aspirational, but make sure that the assumptions you are making are realistic. If you’re not certain, make sure that you consult with a professional that you trust. Which brings us to…
Don’t Work With Professionals You Don’t Trust
Clearly, this has relevance for all aspects of our lives. But, when it comes to the biggest expenditure most of us will ever make, it is even more vital. There are many seasoned professionals who have gained a lifetime of experience in all aspects of the home buying process, from financial experts to real estate agents. Work with them and rely on them, but also trust your intuition. If someone is giving you bad vibes, don’t ignore that feeling either.
On the flip side, ask your friends, coworkers, and social network for advice and recommendations for who to work with. Chances are your connections will have had good (and bad) experiences with individuals and firms. Trust them to point you in the right direction.
The right partner will want you to be fully satisfied with your choices, and won’t pressure you to make a decision that you’re not comfortable with…
Don’t Make a Decision Under Pressure
Most of those involved in the process of home buying make their money by making a sell. They have a direct financial incentive to close a deal. However, at the end of the day, you will be the one living in the house, paying your mortgage, and waving to the neighbors. You are the one who will live–literally–with the consequences of YOUR decision. Don’t let anyone pressure you into buying a house, taking on a mortgage, or placing an offer if you don’t feel it’s the right move.
Buying a house is a big decision, with huge repercussions for every aspect of your life. It’s okay to feel nervous, but don’t confuse your internal anxieties for external pressure. You’ll know when it feels right. That being said…
Don’t Let the Perfect Be the Enemy of the Good
There is no perfect house. Every option will have its advantages and its drawbacks. Don’t let that stop you. Define the priorities that are the most important for you and your family, while also thinking about what you will be willing to compromise on.
Definitely do not scrimp on performing a home inspection, but also keep in mind that there are plenty of issues that you may have the opportunity to fix down the road once the house is yours. Try to look beyond the minor issues that don’t constitute dealbreakers for you, and try to visualize yourself in these new surroundings.
The bottom line: If the property feels good to you, it fits within your monthly budget, and it matches with the lifestyle you envision for yourself, then don’t be afraid to go for it.
Conclusion
This is an exciting time. There’s a lot to consider, and this list is by no means exhaustive. As a start, take some time to experiment with TipRanks’ mortgage calculator to understand your options, make sure to work with service providers you trust, don’t allow yourself to make a decision under pressure, and don’t let the perfect become the enemy of the good.
Soon, with a little bit of luck and a whole lot of perseverance, you’ll no longer be just a first-time home buyer. You’ll be a homeowner.
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