10 COMMON REGRETS THAT FIRST-TIME HOME BUYERS HAVE

Introduction

Wow, finally the dream of living in the house of your dreams has come true for you and your family. Living in a home that you own, and not rent opens the door for many positive benefits. There is a peace of mind to begin with. You do not have to worry about being asked to leave or find another place if the landlord wants to do something else with the property. In the privacy of your home that is solely your property, you are absolutely free to customize the property in any manner that you like as long as it does not violate any laws of the land or proves to be a hindrance to your neighbours.

Common Regrets of First-time Home Buyers

Let us explore some of the common mistakes of first-time homebuyers, so hopefully in the future, one can avoid similar pitfalls.

When you start scouting for properties, you get a wide range of options, each with its own pros and cons. Most of the time, the logic one thinks is that in the future, you will earn more, especially with both partners earning, affording a home that is out of your current range can still be accommodated. Banks also have no hassles in approving such properties. This is a common dilemma that one faces. After all, banks really have nothing to lose. In fact, you will lose out the property if you do not pay your EMIs on time, should you go for the loan. As a basic rule of thumb, housing should not occupy

Financial planning is an absolute necessity when you go for a big investment. If you fail to maintain a good credit score or did not lower your debt, you may have to pay a higher interest rate on your mortgage. Once you have decided on the budget for your home or apartment that you are willing to buy, then you must save or pool in your financial resources towards to your down payment, which should make up at least 10 to 20 percent of the value. Otherwise, you will have to take a heavy loan amount. You may also enjoy favourable loan conditions if you are able to put down a large down payment.

Another key factor is doing your homework thoroughly. Ensure you do your home hunting research in the right area, which is comfortable for you and your family, offers safety and security and offers other amenities close by. If you purchase a home at a throwaway price but requires massive renovation, you may be financially handcuffed since renovation consumes a lot of time and expense. This may not be your cup of tea. Sometimes, it is pragmatic to continue living in a rented property when you have financial issues or if you are in a job that keeps you moving.