As a first time home owner the excitement is big. It's a new purchase and might be one of the largest commitments you have taken yet. It may represent stability, family, security, and financial growth. With all the emotions running through you, there is a chance you may make some mistakes that initially seemed like a good idea. Here are a few things to avoid to ensure your journey of home ownership goes as smoothly as possible.
1. Buying a house you can’t truly afford- when thinking of your monthly mortgage payment you should also take into consideration any added bills that will be attached to your house: taxes, HOA, home insurance, general maintenance and utilities. It’s important you make a conscious decision to buy a home in a price range that won’t put you in financial stress later on.
2. Making major renovations or changes too soon- it is tempting to want to invest and change things in your new home right away, however, it's wise to live in the house for 6-12 months to really get to know its’ quirks. That way you can make smarter decisions about what to fix or upgrade first.
3. Neglecting maintenance- a house requires consistent maintenance. In order to avoid costly repairs and/or damage during unexpected times, it is important that homeowners stay aware of the house’s condition and be proactive in doing ongoing repairs.
4. Not having an emergency fund- it’s important to take unpredictable situations into account. Illness, loss of job or severe damage to the house could result in a payment challenge. It is a good idea to set aside 6 months of monthly house payments to create a safety net in case something unexpected happens.
5. Not considering a renovation long term- it may seem a great idea today to remove a wall and convert 2 bedrooms into a spacious primary suite, but this could potentially impact the resale value of your house down the road. Before doing major renovations it’s important to project into the future and consider advising with a professional.
Just starting your real estate journey? Reach out to us to find out how we can help make it a smooth one.