Buying a house for the first time is one of the most significant milestones everyone wishes to achieve. Since many view homeownership as a sign of maturity and stability, many are working hard until they can afford to buy their own home. But as the excitement grows after saving enough cash for a down payment, many tend to turn a blind eye on the things that homebuyers need to watch out for.
According to a report by the National Association of Realtors, different generations have varying reasons for buying a house. Homebuyers who are below 63 are making a home purchase due to their desire to own a house. For ages 63 to 72, they wish to move to a home closer to their loved ones. As for homebuyers 73 and up, these are mostly people wanting to age in place but in a smaller home.
No matter the generation you’re in, there are three things you should never ignore when buying a house. Here’s why you should never take mortgage pre-approval, home maintenance costs, and resale value for granted when making the purchase.
Skipping mortgage pre-approval
These days, many are taking their chances of buying a house with the help of a mortgage. But just because you think you have enough money for the down payment already meant you should go house-hunting without checking in with your lender first. Sure, browsing for available houses in your desired location is fun and all. But you can end up disappointed to find a house you love only to learn you can’t afford it.
Before looking for houses, make sure to shop for lenders and get pre-approved for a mortgage. This will give you an idea of how much of a house you can afford. Also, if you are already pre-approved for a mortgage, more sellers will take your intention to buy seriously.
Overlooking maintenance costs
Being homeowners meant you will now shoulder all costs and expenses, including home maintenance. This means you no longer have a landlord to take care of your leaky roof, non-working appliances, or that large hole in your wall. You are now responsible for the upkeep of your home, find yourself a reliable rooter service if needed and pay for all maintenance and repair yourself.
Setting up a home maintenance fund is a great way to finance future maintenance and repair jobs. Don’t simply anticipate the expenses associated with the home purchase. Dig deeper, don’t skip a home inspection and you will get an idea on which maintenance tasks you may need to prioritize and how much it will cost before pushing through with the purchase.
Paying no attention to the resale value
Why think about the resale value if your main goal is to buy a house first? It does not matter if you only plan to stay the least number of years before selling the house. One can never tell what possibilities can come knocking on your door. Who knows? You might end up opting to sell the house after just five years of buying it.
Remember that real estate is an investment. You worked hard just to be able to afford the purchase. For sure, you don’t want to pay for a house that will cost considerably less in the future than what you initially paid for.
A home purchase is a serious investment. This is the very reason why you must take everything into consideration. To make your home-buying experience a good one, don’t take mortgage pre-approval, the resale value, future homeownership costs for granted.