Many people take their time before buying a house. Even if money is not an issue, a home purchase is not an investment one can take lightly. It is already given that you are spending a considerable amount of money just to buy a house. It is also due to the fact that such an investment can forever change your life.
For one, a home purchase has a direct impact on your finances. Failure to factor in every cost included during and after a home purchase can take a toll on your finances. This is why many people are on the lookout for affordable loan rates offered by mortgage lenders before choosing.
Buying a house also meant you will now need to commit to residing in a certain location until a time you can sell the house. According to experts, homeowners need to stay for at least five years before they get the most out of their home purchase. Some mortgages also require you to reside in the house you are going to buy for a certain number of years.
Far too many homeowners have regrets when buying their houses. Some failed to do due diligence which led to a series of homebuyer regrets. If you don’t want to be another victim, avoid the following when buying a house.
Failure to Consider the Resale Value
Let’s say you managed to save enough down payment to make the 20% recommended cut. You know what you want and managed to find a house with all of your nonnegotiables. But making the purchase without considering the resale value can actually give you future financial headaches.
Selling the house and moving to another one may not be part of your future plans. But that does not necessarily mean you should forget about the property’s resale value when buying. It may seem odd, but it actually makes sense since a house is a tangible asset worth a great deal of money.
You want to make sure the property is saleable even if your plan is to live in the property for many years to come. You never know what the future holds and if you will ever need to sell it. To stay on the safe side, factor in the resale value before you continue your home purchase.
Sticking to the 20% Down Payment Rule
We are often told that the more down payment you provide, the better. But in reality, this does not apply to all homebuyers. Here’s why.
Not all homebuyers can afford to pay down 20% of the property’s purchase price. While this can help get rid of the private mortgage insurance fees, there are times when a down payment smaller than 20% can outweigh the consequences. You won’t necessarily get locked out just because you can’t make up the 20% down payment mark.
This is why affordable mortgage loans exist. This is perfect for individuals within the low to the middle-income mark. There is no reason to empty your savings just so you can finally buy your own home.
House Hunting Before a Preapproval
Most people are guilty of searching houses for sale before even wanting to buy a house. This is a good way to give yourself an idea of how much are the homes at the cost of your preferred location. But once you decide to make a home purchase, the best way to kick-start your plan is to get a preapproval first.
A preapproval gives you that confidence knowing you are really eligible for a home loan. You get to shop for mortgage and lenders and check how much of a house you are really capable of buying. This also makes you look like a serious buyer in the eyes of sellers.
Remember that in today’s market, there are usually more buyers than houses being sold. This means you have more competitors willing to make an offer. With the heavy competition, it only makes sense that you make yourself a worthy competitor by securing a preapproval before house hunting.
Not Taking the Location More Seriously
Some buyers are sick of renting or sharing a home with their relatives that they would jump at the first house they see. But even if a house ticks all of your nonnegotiables, location is one thing you should never take for granted. You want more than just a house located in a peaceful and safe neighborhood.
You also want to make sure there are amenities nearby that will satisfy your family’s needs. If the commute is too long, you might end up feeling frustrated every day because your house is too far from your work, the kids’ school, the supermarket, or even the hospital. If the commute will only make your life miserable, then it is worth considering other houses in a different location.
Homebuying is a difficult choice. Don’t make it more frustrating by making these mistakes. Take note of these homebuyer regrets and you can get the most out of your home purchase.