The Halloween season is upon us, but just because summer is gone doesn’t mean home buying season is over! Home buyers are continuing to look for homes throughout this fall season. However, many first time home buyers could make some scary mistakes that will cost them in the long run. Read on to learn four truly scary home buying mistakes, and how you can avoid making them yourself.
Not Making a Wish List
Starting your home search is an exciting time, but not one that you should take lightly. Many home buyers begin their search blindly, not really knowing what they want in a home until they have seen too many, are fatigued and end up settling for a home that isn’t truly right for them—or worse, one that is way over budget! You can avoid this mistake by sitting down and creating a wish list before you start your search. Remember, the right home for you more than likely won’t have everything you think you want. Take stock of what is important to you, what your needs and wants are and what you are willing to compromise on. Then, take that list to your real estate agent who can show you homes that make sense for you and fit your budget.
Not Researching Neighborhoods
When you buy a home you’re not just committing to the house—you’re committing to its location, too. Many buyers fall in love with a house, and then come to find out after they have moved in that the neighbors are too loud, the commute to work is too long or the HOA isn’t what they thought it would be. Before you settle on a home to call your own, do your research on neighborhoods in the area that you would like to live in. Take into consideration the amenities you want, the commute you need and the resources that are available to residents. Walk through your chosen neighborhoods to get a feel for the community. Once you have decided on a few neighborhoods that will work for you and your family, your home search will be much easier.
Not Using a Real Estate Agent
Many home buyers, especially first-time buyers, think that they can find their perfect home using online tools and their own skills. However, a real estate agent is much more than just a person who shows you homes. A good real estate agent acts as your advocate and works in your best interest, knows a lot about local neighborhoods and schools and is knowledgeable about the home buying process. In short, a good agent can help you navigate your home purchase every step of the way. If you make the mistake of going it alone, you could end up with a longer home search, difficulty during the sale and even end up paying more for your home.
Underestimating the Costs of Home Ownership
Although the mortgage is the big number when you buy a home, many first-time buyers make the very scary mistake of completely underestimating the costs of home ownership beyond the monthly mortgage payment. This could put them in a bad financial situation or make them house poor for a long time to come. To avoid this, take a hard look at your finances, check your expenses and come up with an understanding of what you can reasonably afford. Beyond the mortgage, don’t forget about other hidden costs like:
- Mortgage insurance
- Home insurance
- Utility payments
- Tax payments
- HOA fees
- Maintenance
- And others
Buying a home this fall doesn’t have to be a scary process if you look out for these common pitfalls. The NC Housing Finance Agency offers many resources to help first-time and move-up home buyers purchase homes they can afford. Learn more about all the resources available to home buyers at www.nchfa.com/home-buyers.
