The rush of buying your first home is one of the most exciting experiences one can endure in their life. It's a huge accomplishment, and you should feel incredibly proud of yourself. However, one thing to remember is not to let the overwhelming excitement allow you to fall into traps during the process.
Stick to a Budget
First and foremost, buying a home is one of the most significant investments people make, and it comes with many new responsibilities. If you over-extend yourself, you start with your investment upside down. New home buyers may want to begin with purchasing a starter home so they can get used to the ins and outs of owning a home. The luxurious home will always be there waiting for you in the future, so it would be wise not to bite off more than you can chew.
First-time home buyers often forget to look at a home's potential and end up pointing out what's missing at that moment. If the homes in a buyer's budget don't have something they want, they can often add it later. Renovations such as adding decks or fences, re-painting, or adding hardwood floors increase the value of a home. Minor upgrades like these put more money in the buyer's pocket if they plan on selling later; all the while, they're able to customize their home over time to fit their lifestyle without maxing out their budget all at once.
Be Prepared for the Worst
As excitement runs through your veins while moving into your new home, remember that you are now in charge. Although you may have a lovely low monthly mortgage payment that is helping you invest in your future, anything that happens to the home will cost you. For example, your water heater, dishwasher, or electricity could go out at any time, and it's best to be prepared for these scenarios. Go into the process with a nice cash cushion for these situations, so you save yourself from the stress of your bank account not being too happy with you.
Get the Inspection!
Do yourself a favor, and don't let the seller get away with dolling the home up to look pretty for you when there's a load of garbage underneath. Having your inspection done can save you money and prevent a headache in the long run.
Say there are cracks in the ceiling that the inspector finds; they don't bother you that much right now, but you can end up receiving a nice chunk of change for repairs from the current owner. You also have the option to save that money to repair your water heater, dishwasher, or electricity problems you came across later.
Pay Up Front
If you hate monthly payments as much as the rest of us, the most brilliant way to go into home investing is to have 20% of your down payment already saved up. Doing this can prevent the burden of needing private mortgage insurance added to your monthly payment and cost you more overall.
Buying a home can be a great experience, but go into the process as prepared as possible. Follow the above steps, and you're bound to come out a successful new homeowner.