Buying a home for the first time can be and exciting experience. Unfortunately, It is also fraught with many opportunities to make critical mistakes that can easily be avoided with the proper guidance on your side.
Here are some of the most common mistakes made by first time home buyers:
1) Failing to understand the concept of value when it comes to home ownership
This covers a wide number of mistakes, but most of them can fit under the umbrella of thinking that buying a house is similar to purchasing a car or other expensive asset. But a home is an investment that should be expected to appreciate in value from the time you buy it until the time you sell it. Even if you plan on living in one home for the rest of your life, your home should increase in value over the years. The increase in value can be used as collateral to take out loans if needed, or to take out a second mortgage. Also, major home improvements will have to be paid for, and often the basis for those loans is the value of your home.
2) Buying on sight
Married couples are more likely to fall into this trap when buying their first home. It is in the right location, and they fall in love with the house on the spot. What they may fail to see is all the associated expenses that are attached to the house, such as property taxes, utility bills, and insurance. First time buyers should be prepared to put down at least 20 percent of the cost. Anything less will increase the long term financial costs. The area may be in a state of falling home values, which may appear to be good on the surface, but may have hidden expenses and long term costs.
3) Placing too much trust in your ability to finance the home
The first step that is too often missed before shopping for a home is to investigate how much loan money you qualify for. The reason is simple: you will know exactly how much of a home you can afford to buy. This makes looking for a home easier, and you will know how much long term financial stress you will be expected to handle. It is important to remember that a home is unlike almost any other kind of investment. Once you sign the mortgage you will be responsible for the payments until you either sell the home or pay off the mortgage.
These are the three main mistakes that are most common for first time homebuyers. The mistakes can be avoided simply by working with a professional real estate agent who works to find you the best financial rates and information, and gives you multiple options for location, price, and future value of your home-to-be. Going down the home buying road alone can cost you money both now and in the future. Getting the best information to make an informed decision is a process that requires an experienced guide along the way: trust Schuren Skriskandarajah for help with buying a house in Vaughan, ON.