When Love at First Sight Just Isn’t Right (And Other Home Buying Blunders to Avoid)…
One common mistake first time buyers make in San Diego is falling head over heels too quickly. You probably have a picture in your head of what you want your home to look like: maybe a large yard, spacious kitchen, hardwood floors, a fireplace…whatever it may be, don’t let the fantasy cloud your judgment. All too often, potential buyers will find everything they were dreaming of, and allow that to make some hasty (and unwise) decisions. Don’t skim over the important things- the financial things. What can you afford? How much extra work are you willing to put in?
Here are a few other tips to keep your head and heart happy (and focused!) while you venture into the new and exciting world of home buying.
1. Be Realistic.
Think about your short term and long term expenses as they may change. Children, jobs, a new car, etc. can all affect your budget. Make sure you have enough of a financial safety net so that you won’t be struggling when changes arise. You want your home to reflect your life, not the other way around.
2. You Are The Boss.
When you submit a prequalification application, the bank will likely give you a prequalification mortgage value that is larger than you expected. Just like falling in love with a big backyard, don’t get too excited about a big number. Instead, do your own math, on your own time and find out what you really, truly can afford. Owing you own home is much more that paying the mortgage, you have property taxes, possible HOA due and all other ancillary cost that you don’t experience renting. Discover how much you can actually pay each month- and go with that.
3. Ask Around.
It’s beneficial to meet with multiple real estate agents and be certain that they understand your goals and needs. Find out from your friends and family if they have a recommendation, and ask for referrals. You definitely want to like your agent and function as a team.
4. Take Your Time.
Don’t use the same mentality when buying a home as you would renting. Take your time, and be absolutely certain about what you can afford. Don’t pressure yourself, or let your realtor pressure you. This is a major commitment, you need to have a plan.
5. Play detective.
Don’t be intimidated to poke around with a flashlight, move furniture, ask lots of questions, and have multiple walkthroughs. Once you sign off on a home, anything that is broken, old, or not up to par becomes your responsibility.
Hire a licensed inspector. These experts know exactly what to look for, and an inspector is definitely worth the investment.
If you’re considering buying a home having a plan is key. Paragon Accountants is here to help. We can look at your budget and review the tax savings of owning a home, so you’re well prepared to make a sound financial offer on your dream home!
