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Are you looking to buy a home in the St. Louis area but are concerned you may end up with buyer’s remorse? Purchasing a home is a grand endeavor and may very well be the largest purchase you’ll ever make. By understanding the most common homebuyer regrets, you may be able to save yourself from making the same mistakes down the line.
While this may seem obvious, oftentimes homebuyers make their decisions based on emotion as opposed to practicality and end up purchasing a house beyond their means. Prior to beginning your home search, make a list of all of your monthly expenses to determine what you can realistically afford. Keep in mind that you’ll also need to pay homeowners insurance and property taxes on top of your principal and interest. Once you have determined your budget, only view homes that are in your price range. Viewing homes out of your price range is a recipe for disaster, as you’ll always find a way to convince yourself that you can make it work.
Not Knowing Your Needs
While it may seem like a dream come true to own a loft downtown in the heart of the nightlife, is this practical for your needs? A property may seem perfect for what you want short term, but what about your long term needs? Will it have enough space for you and your family? How is the parking situation, and how long is the commute to work? It’s important to understand what you need in a home to make it function properly for you. While it’s easy to walk into a space and fall in love with it, telling yourself that you can make it work is never a good idea. Find a home that works from the beginning and you’ll avoid any regrets.
Skipping the Home Inspection
Waiving a home inspection is a win for any seller and can definitely sweeten an offer to buy a house but it’s a big risk and will most certainly lead to regret. A good home inspector will examine the home’s foundation, heating and cooling systems, and the plumbing and electrical. They’ll be able to determine if there were water leaks in the past or if there is existing mold in the home. It’s also a good idea to be present during your home inspection so you can ask any questions you may have regarding the structure. You want to have peace of mind when you’re making such a large purchase. It’s better to be aware of any repairs that are needed so you can either budget for them or negotiate that the seller take care of them prior to close. No one wants to buy a money pit.
Not Shopping Around
Understandably, most potential buyers feel comfortable with their banking establishment and make that their first stop when starting the mortgage process. That’s okay, just don’t make it your only stop. By making the effort to shop around, you’ll see that there are many different loan programs out there to choose from. Ask for rate quotes as well as the fees for each lender. If they’re quoting you a much lower rate than other lenders, ask them if you’ll need to pay discount points to lock that rate in. Choosing your lender and your loan program can make or break your transaction, so choose wisely. Once you’ve decided on the lender you want to use, ask them for a preapproval letter so you know just how much you can spend.
Forgetting Additional Costs
Purchasing a home takes money, no doubt about it. Unfortunately, many buyers do not take into account their down payment, closing costs, property taxes, and insurance. Additionally, you’re now solely responsible for any unforeseen expenses you may incur as a homeowner. It’s important to fully understand what you’ll need to pay out of pocket at closing. It’s equally important to put some money away in savings as a contingency fund should you need to make any repairs.
Purchasing a home is rewarding as long as you go into it with your eyes wide open. With understanding the common mistakes homebuyers make, you’re assured to make a purchase that will be the right choice for you.