Mortgage rates are near historic lows and are likely to begin moving up, so a lot of renters may want to lock in today’s low rates and buy their first home. There are a few mistakes that home buyers make that can cost them both money or headaches later on.
- Don’t be turned off by problems that are easily fixed. Many first-time home buyers look for move-in ready homes. They make the mistake of thinking that dirty carpets, ugly wallpaper, scratched flooring or cracks in plaster are reasons not to buy. But these cosmetic issues are easy and inexpensive to fix. Issues like this often mean that the seller will be getting lower bids on their home and provide an opportunity for the smart buyer to do some bargain hunting.
- There are a lot of costs the homeowner faces that a renter does not. Keep in mind that when a major appliance, a HVAC system or structural repairs are needed, you are your own landlord. Keep that in mind when buying a home and budgeting for your ongoing expenses.
- If a home you want to buy requires major renovation, make sure that you can afford it after making the down-payment and your monthly mortgage.
- Taxes and insurance are items that renters often overlook when making their first home purchase. Both add thousands of dollars to the cost of owning your own home. Make sure it’s part of your budget.