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Common Mistakes Made by First Time Home Buyers and How to Avoid Them

You’re looking to buy a home, and you’re getting ready to talk to a lender about getting a loan. You’ve found one you like and are ready to make an offer on. You are smart and want to make sure all your bases are covered when it comes to finances. Here are some things to look out for when you’re preparing your finances to purchase a home:

Financial Planning

Most first time home buyers believe that if they can afford a down payment and the remaining mortgage on a home, they will be able to afford it. However, there are a lot of expenses that are easily forgotten.

Here’s a list of bills you may expect to pay once you own a home:

  • Mortgage payment PLUS interest

  • Home insurance

  • Hazard insurance

  • HOA fees

  • Maintenance costs

  • Renovations

  • Moving costs

  • Emergency funds for failed appliances, leaks, and other unforeseen damage

Congratulations! You’ve just bought your first home. It’s a time to celebrate—and a time to prepare. Buying a home is not an easy or short process, and it’s not uncommon for first time home buyers to be so exhausted from the buying process that they cut corners once they’ve gotten into the home.

Renovation Mistakes

It’s easy to get excited about changing things up in your new home, especially when you’ve purchased one with renovations in mind. Remembering to look out for these common mistakes will help make sure your renovation goes smoothly and could potentially save you more money in the long run.

  • Don’t make major changes right away. Wanting to immediately redo your kitchen or put in hardwood floors is common for recent home buyers, but major changes often come with unforeseen obstacles and can end up costing more than what’s expected. After living in the home for a couple months, you may find that those changes aren’t as necessary as you initially anticipated, or you might realize some other changes that are more important.

  • Doing projects yourself that should be done by a professional. Putting together a cabinet or repainting a wall or two can easily be done by yourself. But trying to install a new tub or fix electrical issues without experience or the help of a professional can end up in a huge headache—not to mention cost you even more than you anticipated because a professional has to fix any mistakes you may have made.

  • Spending too much on a renovation. Renovating your home should be considered an investment: spend money now to make money later. But if you spend more on your renovation than what someone else is willing to pay for down the road, you’ll be out of the money you’ve put into it. Some of this you can avoid by doing lots of research. Make sure you get several quotes for every project, and ask other homebuyers what prices they’ve paid for similar jobs.

Remember, buying or owning a home for the first time is a huge accomplishment. Stay excited about it throughout the buying and renovation processes, and make sure to take your time with each step to avoid making financially devastating mistakes.

Call Panorama Mortgage Advisors today to find your piece of mortgage happiness.

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