Avoid these home buyer regrets

Avoid these home buyer regrets

Assalamualaikum,

 

home buying process 

Buying a house can be one of the most frustrating experiences of the home buying process. Even though every detail may seem to be in order, the transaction can fall through for numerous reasons. Most people who have purchased a home in the past are familiar with the escrow process and know what blunders to avoid. Unfortunately, first-time homebuyers lack the experience and insight. With this in mind, we’ll present a list of common mistakes that should be avoided to secure your Cyberjaya property.

 

  1. Assuming New Debt.

 

When you are applying for a mortgage loan, the lender makes a decision regarding whether to offer to fund based, in large part, on your financial circumstances. They use formulas to determine how likely it is that you will default on your mortgage payments. One of the numbers they use is your debt-to-income (DTI) ratio. This is a ratio that reflects the percentage of your monthly income that is used to make debt-related payments. Technically, this is referred to as your “back-end” ratio. Your “front-end” ratio includes debt, property taxes, homeowners insurance premiums, and other outflows. The mortgage lender is interested in your DTI ratio – they usually use the “back-end” number – because it informs them about your ability to afford the mortgage payments. For example, suppose you have very little outstanding debt. Your lender agrees to extend funding for the home you’re planning to buy. During escrow, however, you purchase a new car, adding a car payment to your financial picture. In this case, your lender may withdraw the loan, thereby derailing the transaction before it closes. Don’t assume new debt during escrow. If you must buy items, do so with cash.

 

  1. Shifting Money From One Place To Another.

 

When you buy a home, your mortgage lender will want to know the source of the money you intend to use to make the down payment. They also want to make sure the funds are stable, partly to minimise their exposure to fraud. It matters little whether the money is inside your checking account, investment accounts, fixed deposit or even your EPF. The lender will ask you to provide a few consecutive months of statements. This allows them to verify that the funds have remained in one place for an extended period. If you have shifted large sums into and out of the accounts, your lender may request receipts and other paperwork. Be prepared to provide them. If you are unable to do so, the mortgage loan may be withdrawn.

 

  1. Failing To Seek The Help Of A Real Estate Agent

 

A lot of home buyers purchase properties without the help of an agent. In most cases, they do so to avoid paying commissions. This is usually a mistake. Not only can a real estate agent offer price guidance, market insight, and help with negotiating with the seller, but he or she can also guide the buyer through escrow. Work with a real estate agent. Leverage the experience and insight. This useful guide will help you in identifying a good real estate agent.

 

  1. Rushing into things

 

People rush into things about which they end up regretting afterwards. While planning to purchase a property, enough time should be used to look for the place of choice. Only after doing good research, about the houses that are on sale, should a person decide to purchase it. A person should give priorities to his needs and requirements rather than giving importance to the design of the house while deciding upon a property.

 

  1. Evaluate the actual price

 

Before closing a deal, evaluate the actual price of the property. Never rush into any deal but hire a real estate agent who will help you in assessing the right amount of the property. Hiring a realtor is always better because they have good knowledge of all the properties that are listed in the housing market.Therefore before making a purchase always follow these steps- know the house well, assess your requirements and know your financial condition, to avoid the regrets that first time home buyers may have.

 

  1. Buying above your means

 

More and more first-time homebuyers are house poor! Do not get carried away when searching for your home and remember, you do not have to spend the whole amount for which you are pre-approved. We would all love a large and beautiful home, but if there is no money left over for furniture or to run and maintain the house, this beautiful large home can rapidly become a bit of a prison.

 

  1. Beware of first impressions

 

Keep an open mind when looking for a home. Many of us are easily influenced by first impressions but try to stay objective when considering the potential of a home. Whether the current style of the house is good or bad, don’t let looks dictate your decision. An “ugly” house could have very good bones and lots of potentials. On the other hand, a beautifully decorated home could be hiding structural problems. In either case, a thorough evaluation of the home, including a home inspection, should be the deciding factor. Not looks alone.

 

  1. Being Dazzled By Inconsequential Upgrades

 

Sellers often invest in minor upgrades before placing their properties on the market. They do so because it is an inexpensive strategy for increasing the aesthetic appeal of their home. Sellers realize that first-time homebuyers tend to place too much emphasis on such upgrades. This leads to higher bids. Some upgrades are more valuable than others (e.g. new plumbing, new roof, etc.). As a first-time buyer, the best approach is to find homes for sale you can upgrade after closing escrow. That way, you’ll benefit from the resulting increase in equity.

 

  1. Becoming Emotionally Invested In A House

 

Emotions can be expensive for first-time homebuyers. If you become emotionally invested in a particular house, you’ll be inclined to bid higher if there are other interested buyers. You’ll also be less inclined to walk away during escrow if inspections reveal serious problems. Until the property you’re buying has been fully inspected, remain as impassive as possible. Otherwise, you may be tempted to accept flaws that can potentially cost thousands of dollars to resolve.

 

  1. Failing To Consider Non-Mortgage Costs

 

Many first-time homebuyers assume the costs of homeownership are limited to their mortgage payments. In reality, there is an assortment of additional expenses. If you neglect them while looking at homes for sale, you may purchase a property you’re unable to afford. You’ll need to pay property taxes each year; you’ll need homeowner’s insurance, and you may be responsible for association fees. Moreover, you’ll need to set aside funds for ongoing maintenance costs. Many homeowners are currently risking default because they forgot to consider these expenses.

 

The home buying process has numerous pitfalls. Each one can potentially derail the purchase transaction. Avoid the four mistakes above to make the experience as problem-free as possible.

 

Have a great day ahead!

One Reply to “Avoid these home buyer regrets”

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge