Find the right home is one thing if time-consuming but purchasing one can be costly. While there are of ways to purchase a home, there are also many mistakes one can make when you are purchasing a home as well. What may seem minor to you may cost more in the long run of things and for this blog, we’ll be going over these common mistakes that many homebuyers make.
Choosing the Wrong Mortgage Package
Knowing which mortgage plan, you’re choosing to finance your home with is vital. Most if not all lenders will usually consider multiple institutions and banks to take a loan from rather than focusing all attention on a single financial institution. This focus ensures that you’re getting the best prices and the best interest rates possible to keep payment costs lower and to let more income from your payment toward the principal rather than the interest.
Focus on Family
If you’re looking to move into a new, spacious house for you and your family, focus on your family’s needs rather than marketing trends that are popular with other home buyers. If your ideal home doesn’t meet the exact criteria that your family needs in a home, it’d be a rather senseless purchase. Instead, focus on what your family needs to live comfortably and if there are homes that support those needs.
Location Research
Alongside knowing the contents of your new home, make sure that you also get a better understanding as to what part of the area your house is located in. Look in and check these basics to make sure that your home is set in the right area:
- What’s the median home price and value?
- How far is my home from my job?
- How long is the commute?
- Are the amenities I need within a reasonable distance?
Credit Card Usage
While it may seem tempting to go out and buy things for your new home, it would be wise to avoid these purchases after you finally get your home. That, and the more you run up your credit cards, the more your credit score declines. If you’re going to be approved to purchase a home, you want your credit score to be as high as possible when getting approved for the said home purchase.
Buying with Your Heart, Not Your Brain
Don’t become emotionally invested in the first house that fits your needs to every niche. If you become attached to a certain house and end up having the deal fall through, you’ll end up not only disappointed but also disheartened to continue searching for that elusive dream home. Alongside that, if you’re purchasing based on emotions and they change later, you’ll end up being in a house you despise rather than adore.
These are just a few examples of the mistakes that home buyers and is by no means to be the definitive list in terms of home buying mistakes. There are some we didn’t touch over in this blog, but we’ll be sure to do so in our next entry. Until next time and from all of us at Mortgages Done Right, have a lovely day.