Haunted houses are great for horror movies, but would you really want to live in one? Probably not. However, your new house doesn’t have to be haunted to turn into a horror story. Buying a home is a large undertaking, and you’ll want to avoid a few common mistakes to ensure happiness, not horror.
There’s more to buying a home than buying a building to live in. You’re also going to need to pay property taxes and insurance. A house comes with a lot of home-related costs that first-time buyers may not even consider when looking at their budget. To properly maintain your new home, you’ll need to be able to afford the mortgage, utilities bills, taxes, repairs and insurance. Forgetting to budget for the less obvious expenses could lead to your home falling into disrepair.
Buying too soon
Sure, paying rent might be frustrating and feel like a waste, but buying too soon can come with a lot of other frustrations too. If you’re planning to move within a couple of years, having a home to sell when that time comes can be burdensome to plans. Renting out or selling property when it’s time to move isn’t a guarantee and you could be left paying for two places at once.
Making a nominal down payment
Lenders are getting less lenient about down payments, but that doesn’t mean you should buy a home with as little down as possible. Putting money down when you buy a home means you have more equity in that property when you take possession. Having equity built up can help a lot if you need to sell the home shortly after moving in. Selling a home costs money, and if you don’t have enough equity, you could end up making less on the sale than it costs to sell. Even if you don’t have to sell, you will have to pay private mortgage insurance, adding to the cost of your home.
Failing to document
Obviously that refrigerator comes with the house, right? Wrong. You don’t want any surprises about what’s not actually included in your home purchase. If you want the appliances, write them into the contract. Don’t assume the hot tub is included; write it in the contract. Putting everything in writing will save you from final walk-through nightmares.
Purchasing a home is exciting. Avoid these mistakes and make sure it’s exciting in a good way. You’ll have enough horror for Halloween!