Posted On March 22, 2018
Buying a home is the first step many consumers take toward building wealth, becoming a part of a community, and seizing a piece of the American dream. But, some home purchases can lead to regret when buyers don’t do the appropriate research or make a hasty decision. Real estate blog Trulia surveyed homeowners across the country to find out what went wrong with a past purchase, and how they would have handled the experience differently.
First comes love, then comes marriage, then comes mortgage? Or maybe your growing family has outgrown your starter home? Before you start shopping for a home, consider what else is going on in your life. Juggling multiple life events simultaneously can lead to unnecessary stress, emotionally and financially. Plus, applying for multiple lines of credit at once can hurt your credit score. When buying a home, it is best to limit life changes like switching jobs or taking on additional debt. Waiting for the right time can improve your buying power and the ease of the entire transaction.
Too Much Work
Whether you’re a DIY enthusiast, or a fervent fan of HGTV, a fixer upper isn’t always the best choice. Due to the current market’s lack of available housing inventory, some home buyers are opting for homes that require repair or remodeling, rather than waiting for the perfect home to go up for sale. If this seems like a viable option for you, consider a loan that can be applied toward such a project like the 203K Renovation Loan. With the appropriate renovation financing, the home buyer can price in the cost of the remodel, including hiring the contractor to complete it, and combine the cost into one loan with one monthly mortgage payment. A smart financing choice at the time of purchase, can alleviate the cost of ongoing repair.
Not the Right Neighborhood
When buying a new home, a neighborhood that is under construction may seem like a great opportunity to get exactly what you want. However, new neighborhoods may not be convenient for commuting and sometimes developers change, and development does not take place as planned. Checking out the neighborhood in advance, and even interviewing the neighbors can give you a better idea of what to expect and what kind of community it will be. Taking a chance on a property in an un-or-underdeveloped neighborhood now, may mean difficulty selling later.
When considering buying a home, don’t go it alone! According to Trulia, one in five Americans blame a past housing mistake for influencing their ability to change their current housing situation. Consulting with trusted real estate professionals can help you set yourself up for success and avoid common homeowner regrets.