Reaching a point where you plan on buying your first home can be overwhelming. Being eager to get the keys means people sometimes make mistakes. Considering it’s a big step, ideally, you’d want to make as little mistakes as possible.
Buying a home is a long process involving multiple steps, most of which take time. Many people rush through or disregard some aspects during this, which is why many mistakes occur. To help you avoid them, here’s a list of the most common ones.
Buy as Much as You Need
Everyone wants to live in a mansion, but since most of us aren’t millionaires, we need to be realistic about our requirements.
You’ll need to be mindful of your purchasing capabilities and aim for homes that you can afford. Buying an expensive home means that not only will you have a higher monthly payment, which can turn out to be a problem down the line.
A larger home also means it will cost more to maintain. The size of the home determines cleaning services, bills, yard work, and many other factors.
One thing to remember when deciding on the size is that if you plan to live there for a long time, you’ll also need to plan for the future. Planning to have a family means you must go for something bigger.
It’s important to balance between not getting an overly large property and one that will accommodate you in the future. On the other hand, you can always sell the current one and buy a bigger one. Regardless of which option you choose, consider this step a good thought.
Don’t Wait for the Perfect Home
We all know how we want our perfect home to look, but things aren’t as ideal as we may think. Choosing a home that ticks all the boxes in terms of size, layout, location, etc., will limit your potential results.
This is why you shouldn’t aim for that one perfect home in that one perfect location. You may end up waiting for a long time to see that kind of property appear on the market. To be fair, it may never even happen. The idea here is to get a home you like but be prepared to make some compromises. You should also make sure the compromises are ones you can live with.
Another aspect you should consider is directly linked to your budget. You may find the perfect home, but it may be outside your budget. If you’re too eager to get it, you may put yourself in a difficult situation getting a bigger loan you can afford. That can lead to many other difficulties down the road.
Consider All Loan Types
Since this is your first time buying property, you should know that there are multiple types of loans. They differ in many aspects, such as interest rates, down payment, and a few others, meaning you’re looking at a different set of conditions.
You should also consider government-backed loans. Finding good USDA, FHA, or VA mortgage lenders in Phoenix and the surrounding area is relatively easy, so it’s a good idea to contact some of them. You’ll get all the loan information and see if you’re eligible for one.
Talk to Multiple Lenders
One thing you should know is that not all lenders are the same. It means the first one you go to won’t necessarily give you the best conditions. This is where research is important, but make sure you do a detailed one.
Multiple factors come into play when a lender decides the details of the loan you’ll get and they’re not the same. Some may offer more but with higher rates, while others will offer the opposite. Getting multiple quotes can help you choose the best one for you.
Consider How Much You Have Saved
One of the key aspects to consider when getting a loan is how much you have saved. This will determine how much you’ll have for a down payment. The type of loan will also play a role. Some have a 0% down payment, while others require you to pay several percent upfront.
The amount of money you have saved will dictate how much you can allocate to the down payment. Paying more upfront means the loan will be smaller, and you won’t have high monthly payments. With that said, remember that you shouldn’t spend your entire savings on this.
Contrary to popular belief, buying a home isn’t as simple as some people think. Multiple steps are involved, and it’s essential to avoid making some common mistakes and ensure you’re getting the perfect home.