Issues Young People Face When Searching for a Home of Their Own

Buying your first home sounds like a dream come true to a lot of young people, yet, there are some mistakes that are easy to make due to lack of experience. This is especially true when one is blinded by the prospects that come with this amazing opportunity. Also, keep in mind that this is an investment to last you a lifetime, or at least for years and decades to come. This is why mistakes you make when choosing the place may follow you for quite a while. All in all, there are several issues that young people face when searching for a home of their own, as well as several ways in which you can effectively avoid them.

1. Not saving enough before you buy

The fact that you have enough money to buy your own place doesn’t mean that you should do so right away. After all, there are some priorities that need to come first. For instance, you need to pay off your debt and have a decent emergency fund (at least three months of your expenses) before you make a purchase. Also, you should have at least 10 percent for a down payment on your fixed mortgage. If you could save 20 percent, it would be even better and could allow you much greater stability. Sure, this may seem as too much, yet, buying a home is a major investment that you can’t afford to walk unprepared or under prepared into.

1. Rushing into a purchase

One of the oldest marketing tricks is creating a sense of false urgency. Remember, it’s in the interest of the real estate agent to convince you that making a rapid purchase is in your best financial interest and that, unless you buy right away, you might lose the chance to do so in the future. Keep in mind that this is most likely, not true. Take your tame, make some considerations and wait until you check out enough offers that you can tell the difference.

1. Doing it all on your own

Previously, we’ve mentioned one particular trick that real estate agents tend to (successfully) pull off on inexperienced buyers. This is why hiring a professional buyer’s agent company like Curtis Associates, may help you get a better deal. Sending a real estate professional to deal with another real estate professional is clearly a better choice than trying to resolve this issue on your own. Sure, this further adds to your list of expenses but, in the end, results in a better purchase and a net worth that shifts significantly in your favour.

1. Make sure you’re in the right place

Another mistake that you can make is to buy a property in a distant town before moving there. You see, you’re making a permanent decision to migrate to a place that you’ve never lived in before, so it’s clear why this would be a bad idea. Same goes in a scenario where you’re unsure of for how long you’ll stay in a certain place. Finally, if you’re newly married, you need to be aware of the fact that the divorce rate in the world is incredibly high and, no matter how optimistic you are, ignoring this is never safe. Spend some time in a rental place with your spouse before making this major financial and lifestyle commitment.

1. Not budgeting for closing costs

Finally, one of the most common mistakes made by buyers is focusing too much on mortgage payments and completely ignoring the rest of the closing costs. We’re talking about things like a credit report, closing fee, home inspection, homeowner’s association transfer fees, recording fees, appraisal and more. According to some estimates, this could come down to 2 to 5 percent of the purchase price of your home (which is a substantial amount). You also need to cover property taxes, homeowner’s insurance and numerous other fees before being able to truly call this place your own.

In conclusion

One last thing you need to understand is the fact that this is an incredibly important purchase that you aren’t likely to repeat anytime soon (if ever). Therefore, take all the time you need, consult as many experts and necessary and take all the preparatory steps you deem as necessary. Only then should you feel free to go ahead and look for a home of your own.