1.Getting Over Extended
Buy a home that's way out of your price range and you could find yourself feeling pinched every month. Just because you have been pre-qualified for a certain loan amount and payment doesn't mean that is where your comfort level lies. Plan for emergencies, entertainment, vacations, savings furnishings and other amenities. Then take into consideration your future mortgage payment and all of your liabilities. That will give you a better idea of what kind of payments you can really afford.
2.Purchasing a house that doesn't suit you
When buying your home, consider how long you plan on staying in that house. You don't want to find your self in too much or too little of a house. Plan for any lifestyle changes that may occur during that period and search for a home that fits your needs.
3.Purchasing a property that will be difficult to resell
When you buy, think about the day it comes to sell. It's easy when you're house hunting to forget what it's going to be like to sell your home down the road. Most first time buyers sell within four to six years. Walk yourself through all the negatives and think of how you will sell the property prior to buying it.
4.Not having the house inspected
Everything looked just fine. How were you to know that the house had a termite problem, asbestos, a leaky roof, cracked foundation and electrical problem's. You would have known if you had a professional home inspection. A home inspection generally costs between $300-$700 and is well worth it.
5.Not planning for closing cost
You've been saving for a long time and you finally have enough money for a down payment on a new home. You search for the perfect home, and you realize that you have enough for the down payment but not enough for closing costs. When saving for your down payment take into consideration the closing costs which include lenders fees, title fees, escrows for property taxes and home owners insurance. In most cases you negotiate with the seller to pay a portion of the closing cost. Most sellers are willing to contribute since it will help sell their home.
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