28 million Americans want to buy a house in 2023, but they hope to spend a little over $269,000 (on average). Unfortunately, this expectation falls extremely short: the actual median home price is just over $388,000.
This isn’t the only misconception people have about purchasing properties. If you’re planning on becoming a homeowner, then you should be aware of these misconceptions and mistakes so you don’t follow in others’ footsteps.
Below are four common house purchasing mistakes for beginners you should avoid.
1. Not Researching the Area
We know it’s important that you find your dream house. After all, it’s hard to come by a home that’s spacious and addresses all your needs. However, you need to think bigger; finding houses in safe neighborhoods is great, but think even bigger.
Here are some things you need to consider:
- What are the local amenities?
- How far are things like grocery stores, shops, restaurants, bars, etc.?
- What’s the commute like?
It’s true that you’ll spend a large portion of your time in your house, but knowing what the surroundings are like is vital too.
2. Draining Your Savings
Just because you have enough in your savings to cover the down payment doesn’t mean you should use it all up. For one, there are also closing costs, as well as moving expenses that you have to factor in.
In addition, things in your home will inevitably break down, and if you’re unlucky, you can be hit with a lot of repairs in your first year of living on the property. So you need to ensure you have enough in the bank to cover unexpected issues.
3. Not Applying for a Mortgage Before House Shopping
How can you go house shopping if you don’t know what your budget is? Chances are, you can’t afford a house outright, so you’ll need some help from a lender.
Applying for a mortgage prior to viewing properties will help you avoid disappointment. When you know how much you can borrow, this will also eliminate houses out of your budget, which can save you time and energy. This is the best house hunting strategy to have!
4. Settling on the First Mortgage Offer
You might be excited that someone’s willing to lend you money, so you’re eager to take it before they can rescind their offer. However, this is a huge mistake!
Like with other purchases in life, you should shop around for the best rates. Not only are there different interest rates, but also discount points and closing costs.
If, after comparing house prices, you decide that you’re not ready, or the mortgage offers you’re getting are low, consider renting to own. This alternative path can have you being a homeowner in no time!
Here’s more on rent to own if you’re interested.
Avoid These House Purchasing Mistakes for Beginners
Now you know the common house purchasing mistakes for beginners. Do yourself a favor and avoid making these yourself when considering options for houses.
By working smarter and not harder, you’ll have an easier and shorter time finding the perfect home. And you won’t make costly mistakes either!
Keep reading our blog page if you’d like more informative articles.