Edward Williams' Blog
If you’re buying your first home, there are plenty of things that you’ll need to know. Being informed will allow you to avoid some of the most common mistakes that first-time homebuyers make. These errors and their remedies can be found below. Don't join the crowd and make an error, know before you buy.
They Don’t Have Enough Funds
Every homebuyer plans for mortgage payments. Not every buyer plans for all of the other costs that go along with buying a home. Just because you can afford mortgage payments doesn't;t necessarily mean that you can afford the house.
There’s so much financially that goes into owning a home. You’ll need to plan for things like home maintenance, insurance, taxes, closing costs, and more. All of this will need to be saved ahead of time in order to buy and maintain a house. Things like property tax and insurance can go up yearly, and these costs can be very unexpected.
Not Securing A Loan
If you don’t secure a loan first and find the home of your dreams, you could be in for trouble. If you haven’t been pre-approved for a mortgage, finding a home and putting an offer in is a bit riskier. Many buyers don’t realize that they can’t qualify for the amount of loan that they think they can. Getting pre-qualified allows buyers to understand just how much house they can afford.
Avoiding Real Estate Agents
If buyers go it alone, they are taking a risk. The seller pays the real estate agent fees in a home transaction. You really have nothing to lose getting a professional to help you. From there, your agent can recommend all sorts of professionals to assist you in your home search including lawyers, mortgage companies, home inspectors, and others. It’s essential for a smooth home transaction to work with people who are experienced and know what they’re doing.
Depleting Your Savings
When you buy your first home, you’re going to need a reserve of cash beyond what you have saved for a downpayment. This cash includes an emergency fund, money for repairs, furniture, new appliances, and other unexpected expenses. If you use all of your savings on a downpayment, you’ll be in a dangerous financial situation. Just make sure you have saved enough extra for a rainy day fund.
Opening New Accounts
Before your loan is closed, you should be frozen- financially frozen that is! Don’t open any new accounts. It can be tempting to head out and buy a new car that will look good in your new driveway or to fill your house with all sorts of brand new furniture, but you should wait. Once you get the keys to your new home, you’re in the clear to spend again and open new accounts. You don’t want to overextend your budget of course. Just be sensible!
If a new home has you dreaming of new possibilities for your lifestyle. This seems to be especially true when buyers home of choice has a spare bedroom and/or finished basement. Upgrade your lifestyle by creating a room dedicated solely to your interests.
Here are five ideas that will have you feeling like you're living the luxe life.
A home gym is a perfect addition to a finished basement or large spare room. To get a true gym feel install large mirrors, a widescreen tv and built-in speakers. Depending on the size of the room and amount of large exercise equipment you include in your room you can make this room even more upscale. Investing in a sauna and/or tanning bed will provide the perfect source of relaxation after a strenuous workout.
If you are a creative having a room solely dedicated to your craft is a dream come true. Whether you’re a painter, writer, scrapbooker or seamstress a whole room to neatly organize the tools of your trade is a new level of freedom. Most likely you are accustomed to packing up and stashing them away after each time you create. Claim your space and let your artistic genius flow!
An increasingly popular addition in new homes is a gaming room. And not in the sense of darts and foosball. Instead, homeowners are creating a space dedicated solely to their multiple video game consoles and creating the perfect gaming environment. Installing surround sound and a large widescreen tv will have you feeling completely immersed in the game experience. A comfortable sofa and well-stocked mini fridge will keep you fueled for those long hours invested in beating your next game.
Another popular choice is a sports bar or what many would call a “Man Cave”. As with a gaming room, you’ll want to create the ultimate game day experience with surround sound and a large high-def tv. Leather couches and a wet bar that includes a built-in beer fridge are a must for this room. Bring in a healthy dose of team pride with framed posters, signed memorabilia and mascot emblazoned items. All that’s left is to prep some game day snacks and stock the fridge before inviting guests over to cheer on the home team.
A spare bedroom should be taken advantage of. Don’t let it become a giant storage closet or a hardly used guest room. Instead, create a room that is unique to you and your lifestyle. Whether you’re a creator, a gym junkie or game fanatic your own room will get more than its share of usage. By investing in your own interests you’ll be gifting yourself downtime and a happier future.