First-time homebuyers’ money mistakes
Regardless of gender or age, single or married, buying a home for the first time and taking control of your own life is a very memorable experience. But while a home can give you a sense of freedom, it can also bring a lot of pitfalls even when you expect it.
According to financial experts, here are the money mistakes that people buying a home for the first time susceptible to:
1. Lack of knowledge or not doing legal due diligence before buying
The legal issue of the house is also one of the difficulties for first-time homebuyers. For example, if you accidentally encounter an dishonest seller, you will buy a house with planning problems, fake books, …
You should consult a relative with experience in home buying or selling or contact a reputable broker for dedicated support on legal issues, avoiding undue negative influence later. .
In addition, you may have a lot of savings and are ready for a down payment to buy a home, but you also need a bank statement with regular transactions and no bad debt in the past year. for at least one year.
“A homebuyer shouldn’t have an overdraft loan from a credit history.” Jennifer Bell, a real estate agent with the Gramercy Group in Chicago, warns.
Remember, making a good financial preparation before looking to buy the right home is an important step that many first-time homebuyers often overlook or overlook. Jennifer Bell also suggests that you make sure all of your home equity is in your account at least 3 months before applying for a mortgage.
For first-time homebuyers, this decision can be life-changing for the rest of their lives.
2. Carefully consider your financial ability
For some people, the fear of a down payment before buying a home can put them off buying a home.
However, Kevin Quinn, Senior Lending Officer at First Internet Bank, said: “According to the survey results of consumers, many people think that it is necessary to pay at least 20% in advance to buy a house. However, you absolutely have many other suitable credit options.”
Quinn advises first-time homebuyers to thoroughly research mortgage options available to find the right down payment, even if you’re sure you have enough savings. thrifty.
There are a number of loans now that offer home loan packages with much lower down payment. However, you should only choose if you are sure of the stability and sustainability of your personal financial situation for many years to come.
3. Buying a house is too expensive
Some buyers assume they qualify for a home that’s more expensive than they thought it would be. But even so, it is in fact a mistake.
“Only you will know the payout you are comfortable with and which you should buy within your means. Many people easily fall into the situation of immediately buying a beautiful house, a beautiful location just because they like it and at least, at that time they think their finances are acceptable without knowing that the payment. How terrible is a postmortem mortgage for them?” Kevin Quinn said.
Before deciding how much you are willing to spend on a home, you should calculate a financial budget based on the actual situation. Maybe, right after buying a home, you’ll want to spend more on entertainment and travel, or have plans to invest in education or a business venture in the next few years. Remember that you don’t have to exhaust your financial budget at the time of buying a home.
Before deciding how much you are willing to spend on a home, you should calculate a financial budget based on the actual situation.
4. Only interested in the final amount to pay
For first-time homebuyers, it can be life-changing. To ensure that those payments don’t bring stress, negative surprises, young people looking to buy a home should invest time in getting to know what you’re going to sign and agree to.
Even if you’ve worked hard to save up for a certain down payment when buying a home, you may still be missing out on some of the other costs associated with this, such as insurance premiums and maintenance fees. or even taxes.
Real estate consultants will explain in detail every step of the way from home appraisal to payment. Listen carefully to understand every detail and enjoy the joy of owning your own home.
“People often think that what they need is an upfront payment and ignore the thought of dealing with extra costs. It also means they don’t really have enough money to buy it outright, paying it straight away. a house and then still be able to live a full life in peace.” – Kevin Quinn emphasized.
Research and calculate how much extra cash you’ll need to buy a home and include this in your savings plan before you start working on your dream of owning a home.
In addition, in order not to make mistakes when buying real estate, homebuyers need to pay attention and be careful in every step, especially about the legality of real estate to avoid unfortunate disputes. If possible, ask real estate experts to check and advise before deciding to trade.
5. “Spread your hand over your forehead” for your new home
You have found your dream home and what you look forward to next is an interior design renovation in your home.
While that’s a good thing, limiting your spending on a home you’re still in the process of paying off debt is something you need to really consider.
“Sometimes the buyer will be approved by the mortgage company, allowing them to change the space as well as the interior of the house. However, make sure they have no other debt by then. That way I hope not to become a “debtor”.Kevin Quinn said.
at Blogtuan.info – Source: Afamily.vn – Read the original article here
