5 Common Home Buying Mistakes To Avoid

Buying a house can be both a fun experience and a challenging one.  Particularly for first-time buyers – but even for more experienced ones – there are some pitfalls that are all too common.  Avoid them by going in prepared.

1. Buying more house than you can really afford. 

While mortgage companies these days aren’t as quick to hand out over-budget loans as they once were, it’s still an all too common mistake.  House-hunting can make that intended budget creep up and then become forgotten altogether when you simply fall in love with a home and decide you’re willing to pay more.

While it may seem like you can afford it according to a handy mortgage calculator, there are more costs to think about, ones that first-time buyers in particular often forget.  There are property taxes, insurance, and utilities, and then there is maintenance and those unexpected repairs that come along.  Determine a budget that accounts for all of those things – and stick to it.

2. Not looking to the future.

The perfect house now may not be the perfect house in a few years.  If you don’t want to move again, make sure you look to the future.  Are you planning to have kids?  Make sure you go for that extra bedroom, and check out the local schools.  Do you want a dog?  Make sure the yard will work.

You should also consider any financial changes that might be in your future, such as plans to go back to school, or staying home with a new baby.  These will affect how much you can afford to pay for your monthly housing costs.

3. Jumping in too fast.

When you walk out of a house after falling in love with it, it’s easy to make a decision without thinking it through.  Make sure you see the house more than once – you’ll likely notice things you didn’t observe on your first walk-through. 

House-buying is one of those things that often involves emotions, but making an emotional decision on a huge investment isn’t wise.  Even if you’re worried that you might lose the house to someone else if you wait, you should still take the time to make sure it’s the right call.

4. Getting into a bidding war.

A little bit like playing the slots, bidding on a house in a competitive market can escalate quickly.  Don’t get carried away by the moment, or you may find you’ve just agreed to pay more for the house than you can really afford.

Make sure your realtor knows your hard limit for spending and will speak up if you are getting too emotional and carried away in a bidding war.  It’s important to plan ahead of time for how much you are willing to spend for the house, even if it’s your dream house.

5. Not researching the neighborhood

You know you love the house, but will you love the neighborhood?  Take a drive around at different times of day to see what traffic is like, and look at a map of the area to see what’s nearby. 

You might want to know before you buy that house that there’s a fire station right around the corner, particularly if you don’t care for sirens in the middle of the night.  Maybe you don’t want to be too close to the high school with the marching band that practices every day in the fields. 

You should also check crime rates, and if you like to walk to the store, find out just how pedestrian friendly things are in your potential new neighborhood.  And of course, time your commute to work.

Buying a home is an exciting time, and to make sure it’s the best possible experience, go in prepared.  Avoiding these common mistakes will help you move with peace of mind.