Financial Topics

COMMON MISTAKES TO AVOID WHEN BUYING A HOUSE

Owning a house is a wonderful investment that offers you the comfort of financial security and an assured roof of your head in the many years to come. Chances are buying a house could be the biggest investment decision and single most expensive investment you make in your whole life.

It is therefore behooves you to take considerable time before committing to lest you also fall the common mistakes many home buyers make. These are simple factors like not having a budget or failing to have financing ready when looking for a house. These mistakes could lead you into spending more money than you can afford or losing the house of your dreams because you couldn’t close the deal.

Here are other mistakes to avoid when buying a home.

Not getting a financial appraisal

You should go to your bank for an appraisal as soon as you make the decision of purchasing a home. This is important regardless of whether you are financing the purchase through your savings or a mortgage. An appraisal gives you an indication of what you can afford.

Financial experts assess your credit situation and state of your finances and you that to determined how much you can afford to spend on the purchase.

An appraisal becomes even more important when you are looking for a mortgage. While you can borrow up to certain limit, you don’t have to reach the limits if you have other financial obligations. It also help get your mortgage application preapproved and ready when you finally find a suitable house.

Failing to conduct a physical inspection of the house

It doesn’t matter whether you are buying a completed home or one under development, never commit to buying a property without visiting the site and conducting a physical inspection of the house.

Any developer or real estate trying to sell you a property without a tour of the site is more often than not a con or the house is overvalued and they want to make a quick sale to credulous customers.

Exceeding the budget

Before closing a deal, ensure you are fully aware of the prevailing property prices in various locations you are interested in. This is information you can easily find on property magazines and media sites like Todaysglobalnews.Net.

At this point you should already have a budget of how much you are willing to spend. Don’t waste your time looking at properties beyond your means. Stick to those you can afford.

While at it, factor in the maintenance costs, property taxes and utility costs of the property. These might be your waterloo if you can’t keep up with the monthly payments after purchasing the property.

Succumbing to peer pressure

Many first time home buyers make the mistake of letting their friends and family influence their final decision on the house to purchase.

There are many factors to consider when looking for a home like cost, location, security, functionality, house design, social amenities and infrastructure. Consider how the house you want to purchase is suitable for you on those parameters.

For instance, you’ll find upmarket homes to be more costly than downtown properties but that alone shouldn’t influence your decision to buy. Look at other factors like schools and playgrounds for your children.

Whatever decision you make, ensure it’s the best for you and your family.