Mistakes That First Time Home Buyers Make

With so much to mull over, it is natural that some first-time home buyers make blunders they regret afterward. Here is some of the common first-time home buying mistakes that you want to avoid while looking for a home for sale in Gaithersburg MD.

Not budgeting for closing costs:

Besides saving for a down payment, you should budget the money needed to close your mortgage. Closing costs usually run between 2 to 5 percent of your total loan sum. You can shop around & compare fees for particular closing expenditures, such as homeowner insurance, home inspections and title searches. You can also defray costs by asking the seller to pay a part of your closing costs or negotiating the commission of your real estate agent.

Not having adequate saving for after move-in expenditures:

Once you have saved for your down payment & budgeted for closing costs, you should also set aside a saving to pay for what’ll go inside the home. This encompasses appliances, furnishings, new paint, rugs, updated fixtures and improvements you may wish to conduct after moving in.

Purchasing a house for today in place of tomorrow:

It is easy to get lured into properties that fulfill your present requirements. But if you’re planning to expand your family, it may be wise to buy a larger house now that you can grow into. Take into account your future requirements and wants and whether the house you are considering will suit them.

Not understanding the limits of a home inspection:

Once your offer is accepted, you will pay for a home inspection service to scrutinize the condition of the property inside and out, but the outcomes will only tell you so much.

Not all inspections check for things such as radon, mold or pests, so be certain you know what is included. Ensure that the inspector may access each part of your future home, such as the roof and any crawl spaces.

Not purchasing adequate homeowners insurance:

Before you close on your new home, your lender will ask you to purchase homeowners insurance. Shop around & compare insurance costs to get the best deal. Have a close look at what is covered in the policies; opting with a less-expensive policy generally means lesser protections & more out-of-pocket expenditures when you file a claim. Keep in mind, flood damage is not covered by homeowners insurance, so if your new house is a flood-prone region, you may have to purchase individual flood insurance.

Author: Aya Netanel

Magnolia Realty is a full-service real estate brokerage servicing Maryland and Washington DC. Our goal is to help home buyers and sellers achieve their real estate goals while keeping as much equity as possible. Our Home Buyer Rebate is the largest Realtor Rebate in both Maryland and Washington DC