Buying a new home in New Albany is a big decision. With so much money and work that goes into buying a home, you’ll want to make sure that you avoid making a huge mistake. After all, buying a new home should be an accomplishment, not a regret. Here are some of the mistakes to avoid when buying a new home.
1. Going Over Your Budget
When shopping for houses, it’s easy to get your hopes set on a house that’s a bit too high end. While housing prices in New Albany aren’t nearly as bad as in Chicago or New York, you can still manage to go over your budget substantially if you aren’t careful. Especially when you don’t have a clear idea of what your budget is, you can easily let your excitement lead you into a bad decision that will have you struggling for years to come. In order to avoid buying a home that is too pricey, get pre-approved for a mortgage. The mortgage companies have a good idea of what kind of homes you can afford. After taking a careful look at your finances, they will provide you with a reasonable upper limit for the amount they’ll lend. Use this number to guide your spending.
2. Putting Down a Low Down Payment
It may sound like a great idea, being able to buy a home with only a few thousand dollars in down payment. However, the added costs this presents aren’t worth it. You’ll have to borrow even more money since you haven’t paid anything on the house, and the additional interest can add up. Also, buyers who put down a lower down payment face higher interest rates and must pay extra insurance. In the end, you’ll end up paying a lot more by putting down a low down payment. So don’t buy your home until you’re ready to put down around 20% of the cost.
3. Skipping the Inspection
You may think you can skip the inspection when everything looks good on the surface and you trust the previous owners. However, you don’t want to end up sorry, so it’s best to get the home checked by a professional. This is a standard procedure for a reason, and it protects everyone involved.
4. Buying Without Settling
If you plan to move again soon or aren’t sure that you’ll settle in this area for a long time, now might not be the best time to purchase a house in New Albany. Once you are committed to paying a mortgage and have sunk a lot of your savings into the home, it would be unfortunate to decide to leave. The process of selling a home is often long; you would risk delaying your move in order to sell your current home. If you are not sure that your roots lie here, it’s best to rent until you can be certain that you’ll stay for a long time.
5. Not Putting it in Writing
Sometimes the little extra perks are what entice you to close a deal on a new home. If you don’t get every detail in writing, you may have little recourse to make sure all of these agreements are met. Make sure every promise that’s made in word is also written within the official documents.
To avoid making a mistake on your home purchase, pay close attention to ever important step. Remember that this is still a business; be sure to protect yourself along the way. Patience, along with a good plan, will help ensure that you are happy with your new home decision.