Buying a home for the first time can be quite exciting. It’s also very easy to forget about some of the problems of buying a home when one gets too excited. Below are five of the more common things that first time buyers forget to check on when buying their homes.
One of the most common things for a new homeowner to forget to check is how much a house will really cost. When he or she gets pre-approved for a mortgage, it’s easy to see that amount as a goal. In truth, there’s much more to the cost of buying a home than just the mortgage payment. On top of payments like insurance and HOA fees, there are also recurring fees like maintenance and even utilities that renters may not deal with on their own.
Home Improvement Woes
DIY shows have made renovating a home seem like a breeze. In reality, this expensive and time-consuming process can be the downfall of many a first time buyer. Taking the time to look at the real costs of renovation, including the almost-mandatory cost overruns and the time it will take out of one’s working life, seems to be something that comes with a bit of unpleasant experience.
The Real Buying Cost
If you’ve never bought a home before, you might think that the price on the sign out front is the actual cost of buying the home. In reality, the real fees can actually quickly total up. The costs of inspections, title searches, insurance, and even credit reports can quickly spiral out of control. While these costs might seem minor individually, they can quickly eat into the down payment savings of a buyer.
Many first time homeowners are addicted to the idea of a home as an investment. After years of viewing home flipping shows, they tend to go in looking at the raw numbers. It’s important, though, for these homeowners to think about what they will do if the market isn’t as strong as they might hope. This isn’t just a matter of checking one’s finances – it’s a matter of deciding if holding on to a particular property is really suitable for one’s life.
It’s also important to note that many first-time homeowners forget to check whether the home they buy will be suitable for them in the near future. Young couples, for example, have a tendency to forget about things like school zoning when looking for a new house. What works today might not work tomorrow, but those who can see only a ‘dream home’ might forget about that.
First time buyers tend to neglect the reality of buying a home in favor of investing in the dream. With a little due diligence, though, they can make sure that a dream home doesn’t turn into a nightmare.