Three Mistakes First-Time Real Estate Buyers Make
Purchasing real estate for the first time can be exhilarating. However, in the midst of the excitement felt by many first-time buyers, some of the most important factors of the home-buying process are ignored or largely misinterpreted. These errors can lead to costly, time-consuming issues down the road, yet many potential owners do not realize the damage they may be causing. Here is a look at three of the most common, yet catastrophic mistakes made by new purchasers:
. Assuming The Mortgage Is The Only Financial Obligation When renting an apartment or house, outside of utility bills, lessees are generally responsible for one payment. However, when buyers purchase a house or condo, their mortgage payments are only one of the many fees associated with owning real estate, and they are not a blanket payment like rent tends to be. First of all, every real estate owner is responsible for property taxes. While tax amounts vary by state and municipality, they are an expense that cannot be avoided. Also, purchasers should realize that it will be their personal responsibility to either perform routine maintenance and repairs on their house, or to contract a company to take care of each for them, at their own expense. Furthermore, another cost, which typically only affects condo owners, is the monthly homeowners' association dues. These are fees that are used to sustain any common areas and grounds.
Not Getting The House Inspected Before Buying While house-hunting, potential purchasers may find what they believe to be their dream home. The building will most likely appear flawless to them when they first walk through, but problems may be bubbling below the surface that are not so evident at first glance. Floor boards may be loose, or there may be mold, or even termites, in the basement. These are issues that a highly-trained home inspector will notice right away. Some buyers eliminate house inspections to cut costs, however, the inspection rate is usually no more than a modest $500 fee. This is a small price to pay compared to any possible repair costs. Not to mention, the new owners will be forced to make these repairs on a home that they most likely would not have purchased if they had previously known it had defects.
Not Spending Only What They Can Afford Before potential owners start looking at real estate, they must be fully aware of exactly how much they are able to afford. There are a few ways for purchasers to determine their comfort zone, but it is best for them to use their current monthly rent as an example. If the purchasers can afford their current rent with ease, then they should use that amount as a guidepost of just how much they can afford to pay each month in mortgage payments, homeowner association dues, maintenance, and utilities (if they are not currently paying them separate from the rent).
Easy Fund: https://www.fct.ca/customers/legal-pro/easyfund/