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5 Home-Buying Mistakes You Should Avoid

One of the most important investments during your lifetime is when you purchase your home. While it is a worthwhile purchase that will pay for itself for years to come, buying a home can be a tricky process. Many first-time buyers make mistakes which effect them much longer than the initial purchase period. Here are a few helpful tips that will guide you along the right path to home ownership.

Austin Real Estate
Photo by 401(K) 2012

Remember It Is A Long Term Investment

Paying out rent every month can be frustrating, but if you are unsure if you are staying in the same location for the next few years, this may not be the best time for you to buy. Many people purchase a home, already aware of the fact that they will be moving to a new location within the following two or three years. Do not assume that you will be capable of selling or renting out your home once you move. The selling process can be just as tricky as the buying process, and you are very unlikely to get back the money you invested. It is best to stick with renting until you are able to purchase a home that you will be able to enjoy for the foreseeable future.

Stick With Your Budget

It is always important to plan a budget beforehand in order to not end up purchasing property you will never be able to afford. It can be fun to shop around and view homes that are extravagant and feature all the latest amenities, but if you are serious about making a purchase, you will need to stay within your means. Consider what your income will be within a few months or years, is it possible that you may not have the same job in five years that you have now? In order to give yourself some assurance on how much home you can afford, you should speak with your lender about getting pre-approved for a mortgage before you start house hunting. This will let you know what price range to go with when it comes time to browse current listings.

Get Everything in Writing

When you tour a home that you are interested in buying, you may assume that the stainless steel refrigerator and high-quality oven will be included with your purchase. Many times buyer will expect furnishings and decorations to be included in the home when, in reality, they are not. Go over your contract with your realtor before signing the final papers to see what exactly is included and what isn’t. If you are expecting a certain piece to stay, and it is not listed on the contract, be sure to get it in writing.

Do Not Skip the Home Inspection

An inspection can be a crucial part of a home purchase. While a home may look beautiful to the untrained eye, there can be many hidden faults only a professional can recognize. Many times buyers will think an appraisal is the same as an inspection, but this is not true. An appraisal only lets you know how much the home is worth. An inspection will alert you of internal damage to the foundation or wiring as well as water damage or termite infestation. Always have a professional inspection done before you close the sale.

Don’t Forget Added Costs

Many first-time buyers will overlook the closing costs and fees associated with a home purchase. When you are thinking about how much home you can afford, always factor in these additional costs. You will also want to think about monthly fees such as utilities, home insurance, and property taxes when you are calculating the cost of your monthly house payment. Ask financial experts and other home owners about what the average monthly cost of owning a home is. This will help you to have a better understanding of what to expect when you become a home owner yourself.

Buying a home can be confusing, but it doesn’t have to be impossible. While it is likely that many first-time home buyers will make one or two mistakes along the way, some of the most common issues can be avoided by following these helpful tips. Once you have done as much research as possible, and gathered all the information you need, you should get in contact with an Austin, TX realtor to learn more about available properties for sale.

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