Buying a house is generally the largest investment you’ll make within your lifetime and unfortunately, oftentimes, especially first-time homebuyers may be left regretting the purchase. While there are a few common mistakes that homebuyers can make, the simplest mistake that can lead to buyer’s remorse is simply purchasing a home that is outside of your budget, or within an unrealistic budget that you may have set.
Related: Why You Shouldn’t Get Excited When Touring Houses
More often than not, your pre-approval will be a higher amount than what you are personally are wanting to spend or what you may be comfortable budgeting for. This is something that you should research in depth so that you know what it is that you can afford without causing any financial hardships that could lead to buyer’s remorse later down the line.
When touring homes that are at the top of your budget, or even over budget, it is quite easy to fall in love with the house as it may have addition space, features, or could be more upgraded and renovated than homes within your budget. In the moment it is easy to try and justify spending a little extra to get the home of your dreams, and while you may feel it is a smart investment at the time, months, or even years down the line you may be left wishing you had purchased a more budget friendly home.
It’s easy to see a home, look at what the monthly mortgage would be and feel as if you’re making a smart decision with your purchase as it is in line with your personal budget. As a resonsible homebuyer, you should always factor in ALL expenses prior to begining your house hunting journey.
While you may have factored in any potential HOA dues, property taxes etc. there is a lot more that should be factored in when pinpointing your monthly bills in a new home. Things such as electricity, water, trash services, gas if applicable, etc. are all things that may be required in your new home, and thus they should be included in your estimated budget in addition to your everyday expenses such as groceries and gas.
Related: Is an FHA or Conventional Loan Better?
There is a term that is used frequently, especially among first time homebuyers, “house broke” and this is exactly what can happen if you fall into the trap of purchasing a home that is at the top of your budget or outside of your means.
When house hunting, whether it’s your first home or not, it is important to be very honest about your budget with your agent so that they are able to show you homes that meet your criteria and come with a price tag that you are comfortable with. This can help eliminate the temptation to buy a home over budget, and reduce the chances of being left with buyer’s remorse. Stick to your budget, and your chances of being sucessful homebuyers, in a home you love and can afford, should be easily achieved.
If you’re currently searching for a new home, are ready to sell your home and need a seller’s agent to assist you, or if you have any questions regarding Medina Real Estate or New York Real Estate, please feel free to contact our office at any time.