Favorable interest rates and relatively low home prices make the housing market hot. Experts are expecting significant gains in this market for the next half of the year.
Since housing market is hot, competition has increased.
If you want to hop into the housing market, you must be mindful of this increased competition, because first time buyers may regret their purchase if they do it the wrong way.
Here are common mistakes first-time homebuyers should avoid:
- With all the costs associated to buying a house, it could be wiser to rent instead of buy. You must determine how long you will be renting that home without incurring too much financial damage on your side.
- You must be financially prepared if you are planning to buy a home with the expected increase in home prices and mortgage rates. You must also be quick in making decisions because low priced houses can easily be gone. Save as much as you can for down payment and pay off as many loans to have a good-looking credit score.
- You can look for mortgages online, but it is still best to check with the county or city to find out if you qualify for loan products. Talk to various loan officers to learn the requirements and strategies to get a loan to buy a house.
- Inspect the house you plan to buy. Go to the neighbourhood along with your agent. Learn if the house has cracks, odd smells, stains and other problems. Check the place at night to find out if the area is safe and peaceful.
- If you buy a house as a home, you should be prepared for a lot of maintenance costs.
- If you want to buy a house and sell it for a profit five or six years later, remember that it is a big asset that is not liquid. It would be better to invest in stocks for profit, than in real estate.