Are you getting ready to buy your first home? Before you make one of the biggest decisions of your life, make sure you read this handy article on expert tips to make the most out of your big buy.
Shopping for your first home can be really exciting, and of course, a little scary and overwhelming.
You want to end up with a home that you love and that you can afford, but it’s easy to make some silly mistakes if you don’t know what you are doing (or even if you do).
Make sure you are armed with these smart tips to avoid the 7 most common mistakes when looking to buy your first home…
Not sticking to your budget
Make sure you have a budget and stick to it.
Start by making a list of all your monthly expenses (excluding your rent) including your vehicle costs, any loan payments, credit card payments, insurance (health, car, and home), savings, and entertainment.
Also, keep in mind any major expenses that might only happen once a year like when something breaks in your home (ever had to replace your fridge? It’s pricey business).
If you subtract this total amount from the pay you take-home, then you can figure out how much you can spend on a new home.
Not having a pre-approved loan before placing an offer on a home
If you have a poor credit score or an unstable income, then this can result in the amount the bank lends you may not match up with what you think you can afford to pay.
This is why you need to make sure you have a pre-approved loan before you place an offer on your first home.
Not thinking about other expenses
Don’t forget that the moment you own a home, there are expenses that you may not have had to pay for when you were renting.
Things like plumbing, basic home fixes, and levies add up as a homeowner.
Remember, you are now the owner of the house and cannot look to a landlord to cover maintenance and other expenses.
Related: 7 Easy Peasy Home Maintenance Tips for the Smart Homeowner
Not compromising
The problem a lot of homeowners face when buying their first home is that they are too picky.
Now, we aren’t saying that you should settle for less, but it comes down to knowing how to compromise.
Make a wish list for your new home. Try to stick to it as best you can, but the trick is to adapt this list according to your budget.
Of course, you always have the option to continue renting until you can afford the house of your dreams.
Compromising too much
Although compromising to a certain point like the colour of the house is encouraged, the trick is to compromise on things you can still make work.
In some cases, homeowners cave on the vital things like the number of rooms (and you are planning on starting a family) or the number of bathrooms.
Or maybe you have always wanted a garden, but the apartment you looked at had a nicer interior so you choose the apartment only to regret it in a few months’ time.
Make sure you have some things that you won’t compromise on but still stay open to things you can change.
Discover: How to Decorate Your Home on a Budget: 5 Tips
Not inspecting the house properly
It’s easy to get swept up in the look of the house, but you never know what could be lurking beneath the surface.
You need to know what kind of shape the house is in so that you don’t end up buying a maintenance nightmare.
Not getting proper insurance
If you get a bond on a home, then you will have to have homeowners insurance. This covers the physical structures on your property.
But you need to also make sure you have household insurance. This covers all the items you bring into your home. If you don’t have household insurance, then you run the risk of covering the costs of damage to expensive items in your home if something goes wrong.
Make sure you have comprehensive household insurance the moment you buy your first home.
To sum it all up:
- Know your budget and stick to it.
- Have a pre-approved loan before making an offer on a home.
- Think about hidden and new expenses.
- Compromise on things you can change (like the colour of the home or finishes).
- Do not compromise on important things like the number of bedrooms.
- Make sure you properly inspect the house.
- Make sure you are covered for the unexpected.
If you are interested in home insurance, then chat with one of our team members. The best part about Oneplan insurance is that we let you choose how much cover you want at the price you can afford.
Related: 4 Things to Know About Household Insurance
You can also turn your cover on and off when you want to and adjust it at the click of a button through the Oneplan app.
Happy house hunting for your new home!
Your Insurance Family,
Oneplan
