Buying a home has been referred as the American Dream for decades. People strive and save to be able to make the greatest purchase of their lives, so of course the fear of somehow screwing it up is a valid concern. One of the questions Ralph DiBugnara, President of Home Qualified, gets asked most from homebuyers is “What is the biggest mistake I can make when buying a home?” If you are one of these concerned homebuyers, worry no more and check out Ralph’s top three tips for having a smooth homebuying experience.
1. Don’t get too emotional about a property you don’t own yet.
With this being a strong seller’s market, a lot of first-time buyers are bidding over what they are comfortable with because it is taking them longer than usual to find homes. It is important to have a budget and stick to it. Don’t go overboard and bid way over what you had planned because you already pictured yourself moved in and your living your life in this new house. If you are less emotionally attached to the property, you will be able to take a step back from the situation and have the clarity to realize you need to move on.
2. Do not leave yourself cash poor.
If you must use every bit of your savings to purchase a home, you may be setting yourself up for failure in the future. No matter how much you plan, there will always be unforeseen expenses you did not budget for. Make sure you have enough savings left over for emergency funds with the house. Many people keep a separate bank account which they do not touch unless there is a major issue with the house. This is a great way to always be prepared for the curve balls of homeownership.
3. Have a vision when you are searching for a home.
A lot of the homes that are left on market are older and may need some renovating to be the home of your dreams. Don’t let this deter you, some fixes are minor and there is financing available that will allow for you build the cost of repairs into your purchase price. If you do decide to go the renovation route, ask your realtor and mortgage loan originator if they can recommend a contractor who is experienced with renovations loans. Having a contractor who can fill out the required paperwork and understands how they will be paid is the key to having one of these transactions close quickly and without any issues.
For more information on the rising rehab trend, check out our latest renovation video.