subject: Purchasing Your First Home - Errors To Stay Away From [print this page] The sublime thrill of paying off your mortgage rather than paying off somebody else's is something many people can't wait for. Often though this thrill is also mixed with some trepidation as it is a massive commitment and something you won't have done before.
The other scary thing is that it is a very emotive process, and when combined with one of the largest financial transactions of your life, problems can arise. Often people will make the same slip ups as other first timers.
Slip up number one is not really having a clear idea of what you want. To avoid this you should have an explicit list of features you desire so you can be ruthlessly precise.
Another mistake first time home buyers make is they don't take time to figure out their financial situation. It's always a great idea to figure out how much you can afford for payments each month so you can buy within your means. Making this mistake can lead to other mistakes, eventually digging you in a hole that could lead you into foreclosure.
Just simply having enough money to pay for the dollar amount on the house's price tag is not sufficient. If you look at it in this manner you will have a lower estimate of the real cost, as there are ongoing costs involved with owning a home, such as insurance, rates, maintenance, and any other number of unknowns.
The third slip up is that many people going looking for places without having their mortgage pre-approved, which can mean that you end up wasting everyone's time if you get denied. Another problem, if your are pre-approved, is going out on a spending spree and damaging your credit rating, meaning your mortgage gets denied.
Be wary of trying to buy your place without an agent, as this is a common slip up. Agents just about always get a better price than amateurs as this is what they do for a job.
Finally, you should always get a professional in to give your house the once over before your sign up. This will ensure that you will not face unexpected costs later on.
