First Time Home Buying Mistakes and How to Avoid Them
Looking to purchase your first home is an exciting process. Especially at the beginning, when the thrill of clicking through the available properties can itself be its own reward. With each new listing the imagination rushes to place you within the walls until it can sometimes feel as though you’ve already lived several lifetimes within a dozen different homes.
Of course, some of the houses will attract you more than others. Undoubtedly, a handful of homes will play your heartstrings like Yo-Yo Ma, eclipsing the rest and making you feel as though you absolutely must try and get that home.
This is the moment when people, especially first time homebuyers, can begin making some serious mistakes that could greatly affect their future.
Murmurs of the Heart
Buying a home is a combined effort between your head and your heart. This is an important concept that is key towards making a good and financially healthy decision. If one simply listens to the whispers from their heart, they can quickly become an all-consuming chorus urging one towards some unsound decisions. In order to prevent this from happening, there are some simple and important steps you can take, ideally even before you begin the official search.
Check your Budget!
Yes, money is a boring topic, but if you’re going to intelligently buy a home then your finances should begin to take on a larger space within your mind. Simply put, you need to know what you can actually afford. This should be a priority before you go looking at a house and fall in love with something that, when it comes down to it, lies in a terminal place outside of your budget.
Unfortunately, the noise from the surrounding culture often urges us to ignore our own bank accounts and to instead follow a Shoot-For-The-Moon-Fall-Amidst-The-Stars sort of approach. While this might be fine for some aspects of existence, it is not such a hot way to handle your finances.
Be realistic, in other words. Know what you can actually afford based on your current income and assets. Don’t assume that you will suddenly begin making more money and purchase with this hypothetical sum in your head. It is through such decisions that dream homes suddenly become nightmares. No one plans to suffer a foreclosure, but foreclosures can occur to those who fail to plan.