When people say that buying a house felt like the universe has aligned itself in a way that you are already set for life, they were not exaggerating. Your first house is a milestone, and it can only get better from there. But whether your browsing properties for sale in big cities like Singapore or LA for work or school, the excitement opens us up to committing house buying mistakes.
Let us take the time to explore common house purchasing blunders and how you can avoid it when it is your turn to buy your first home.
Financial capability
Big investments like this starts with money talk. The biggest mistake you can make is spending money you do not actually have. Before you shop around for a house or a condo, consult your account first. Remember that this purchase should not affect your personal saving as much because the assumption is that you have already saved up specifically for buying a home.
There are many avenue you can explore in terms of financial help like loans, but you must check if you can afford the monthly payments.
If you have not saved up for it yet, the best way to go about it is to go back to your daily expenditure. List down all bills and payments, how much you are spending for your needs, and the money you set aside as your personal savings. If there is still money left, you can save this for your home or you can divide the money for your personal savings.
Looking for a house that is not within the budget
This is one of those easier-said-than-done scenarios. It is tempting to browse houses that are not in your price range, and it is totally fine to check them out. But always reel yourself back in when your hands are already itching to sign its purchase contract.
This is your first home, and going simple may be more practical. Plus, it gives you lots of opportunities to truly design the house to your taste and not worry about filling a huge space with items. Remember, it is not really the space that counts but what you can do with it.
Assuming a loan will be approved
When you apply for a loan to make this purchase, do not assume that it will get approved. The bank will meticulously check your account and how often you have been paying credit card bills because these can tell them whether you can make the monthly payments.
What you can do is to get pre-approved. You can ask the bank to evaluate whether you are qualified or if you have a chance at getting a loan. Try not to make big purchases during your loan application. This might affect their decision to grant you the loan.
Forgetting additional fees
Remember that your house purchase does not stop with buying the property. There are other fees involved in it too like association and document fees. Just make sure that you save up at least 30% to 40% more than what you need to buy your home.
Avoid these mistakes which most first time home buyers tend to commit by understanding this guide. This way, your home buying experience will succeed and get you the home you always dream of.