Expensive mistakes that all first time home buyers should avoid at all costs

If you are a first-time homebuyer, then chances are that you are awed by all these attractive homes listed in the realtor’s brochure. Granted that’s bound to happen which is why you need to be on your guard. You need to remember how hard you had worked to earn the cash that you are now planning to invest in purchasing a new home. More importantly, you need to view this as a long-term asset, which is why you need to avoid these unnecessary mistakes that most amateurs and first-time buyers often commit. So, check it out,

Find out if you are eligible for a bank – loan

As a first-time buyer, you are bound to assume that you can obtain a bank loan easily and that the bank will disburse the required amount right away. Now, that’s a dumb mistake to make for nearly all banks to follow a detailed process before they approve any loan application. And when it comes to a home inspection in Littleton, you’ll find that most banks will insist on one before they approve granting any loan. Banks would prefer a detailed home inspection as this would enable them to decide on the loan application and whether it needs to be approved. So double-check with your bank regarding the loan application process, your credit status, and whether you are eligible for a bank loan. You may also want to find out how long their approval process would last so that you can estimate how long you would have to wait before you can finalize the deal and move into your new home.

Not checking to see if you are eligible for a loan

One of the mistakes that most amateurs and first-time homebuyers often commit is in not finding out if they are eligible for a loan and as to how much they can obtain from the bank. Let’s say that you find out that you are eligible for a bank loan; that’s great. Just keep in mind that most banks would rarely disburse 90% of the amount that you had requested and would usually only disburse less. You need to factor that in when it comes to working out if you can afford to purchase the new home. 

Borrow and purchase

This is a mistake that almost all first-time buyers make; while finding your dream home can be important, it needs to be pointed out that the decision concerning your long-term investment needs to be a rational one. And remember that over-borrowing to purchase your dream home can well turn into a decision that you are bound to regret sooner than later. Any amount you borrow to purchase the new home is a liability that you would have to repay, and over-committing to it can cause undue stress as well as a financial liability.

Forgetting to factor in repairs

When you have worked the purchase price into your budget, you also need to factor in the repairs and emergencies into the same. Granted that few homeowners generally tend to do this but there’s no reason that you should as well. Figuring out these estimates should come in handy and prove to be extremely useful.

These are some of the most basic mistakes that most homeowners tend to commit, which is why you need to ensure that you do not do the same. Just remember that at the end of the day, your purchase is an investment and one that you need to take extra measures to protect which include learning not to commit some of the basic home purchase mistakes.

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By Cary Grant

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