When purchasing a home for the first time, people want everything to be perfect. Although it seems like asking for a lot, many people do manage to find a “dream house”.
Unfortunately, a similar number of people also begin to regret purchasing a house once the “honeymoon stage” is over. If you are purchasing a home for the first time, be sure to avoid doing any of the things below. Otherwise, your dream house could very well turn into a massive headache:
Not establishing a budget
Many first-time homeowners underestimate the cost of running a home. Don’t forget that utility, maintenance, and a whole other set of bills will be heading your way once you stop renting and start owning.
Draft a budget to see if your income can support homeownership. If not, you’ll want to save up for just a bit longer. This equation should prove useful:
Spending Power = (borrowing power + deposit – home acquisitions costs) + government grants and concessions
Forgetting to check credit score
Make sure you check your credit score before seeking pre-approval for a mortgage. A poor credit score can result in high interest rates. A denied mortgage application is also possible. The earlier you request a copy of your credit report, the more time you have to fix any problems you may find.