Avoid These Top Home Buying Regrets
A home is probably the largest purchase you will ever make in your life. Yet, according to NerdWallet, half of homeowners said if they could do it again, they would do something differently. We don’t want you to have regrets when buying your next home. Here are some of the top regrets homebuyers have. Read through the lessons here so you don’t make these same mistakes, and consider hiring a trusted attorney to help you through the process.
Spending too much money
According to Realty Trac, home-price increase rose higher than wages in 2016, making homeownership hard for many. People who did buy homes often spent more than they expected. Millennials and Generation Xers especially said they regretted purchasing a home that was too expensive. Make sure you know the market you’re walking into, and determine if this is really the best time to buy a home.
Not saving for a down payment
For many millennials, it will take 10 years to save enough money for a 20% down payment on a home, according to Apartment List. Still, many people buy before they have that much saved, and end up making small down payments. Rushing into buying a home without a significant down payment means paying higher interest on a mortgage with higher monthly payments.
Not looking at schools
Even if you don’t have kids now, chances are you’ll stay in your home for a number of years. Many newlyweds or people who only have infants don’t think about schools, as that stage of their kids’ lives seems far away. If you’re planning on having kids or already have a baby, look at the schools in the neighborhood before buying, so you don’t end up having to move or drive your kid to a distant school for a great education.
Not shopping around for a loan
Half of home loan borrowers take the first loan they’re offered, according to the Consumer Financial Protection Bureau. When it comes to loans on big purchases though, even a slightly lower interest rate can save you thousands of dollars over time. When shopping for a loan you should also think about private mortgage insurance and fees, in addition to APR.
Buying too big, or too small
Lots of people think they want or need a big home, only to buy one and realize it’s expensive and difficult to maintain. On the other hand, some people think they don’t want a family, then change their minds and wish they had bought a bigger home. It’s hard to predict life, but take some time to think about your future and what you really want before deciding on a home. Don’t be swayed by size, or rule out the benefits of an extra bedroom.
Not looking at the neighborhood
Often, people will find the perfect house, only to realize they can’t walk to the store, have a terrible commute to work, or don’t have the things they would like in a neighborhood. Look at the area’s walkability score and surrounding businesses before making a decision about buying, even if the house itself seems perfect.
Buying a home isn’t a final life decision. You can always sell if needed. Still, it’s better not to have regrets when it comes to such a big purchase, and when talking about the place you’re planning to make your home. No matter where you are in the home buying process, make sure you have an attorney on your side to help with the mortgage, loans, home inspection, and more.