A few short years ago, over 2,200 people were surveyed by Trulia about their home-buying experience. This study revealed an ugly truth of home ownership across the United States: a phenomenon known as “home-buyer’s remorse.” Out of every five Americans, at least one person, couple, or family believed that the purchase of their house was detrimental to their financial health. This represents about 21% of homeowners. To avoid becoming part of this statistic, adhere to these guidelines when choosing the home you wish to buy.
Set a Budget Early On
Exceeding your financial limits is a preventable mistake when it comes to purchasing a brand-new home (even for first-timers!). Yet, it is one of the most common issues that arise among homeowners. One reason is that many people forget that the house’s price includes much more than the asking price. You must consider what it will cost to close on the deal, the price of the down payment, and ongoing expenses such as maintenance and insurance.
The best way to avoid financial regret such as this is to set your budget as early as possible in your home-buying journey and stick to it. Don’t just plan for the asking price, but make extra room in your spending capacity for these underlying costs as well.
Consider Old Homes as Well as Brand-New Ones
One of the worst things you can do as a prospective home-buyer is to reduce your housing options to only a select few types of homes. When most people prepare themselves to purchase a brand-new home, they believe that new, manufactured houses are the only options. This is far from the truth! While there are some highly appealing options for new homes, they do represent the more expensive end of the market.
Resale homes are often the better alternative for house hunters, especially those who are searching for the first time. Opting to buy a resale may prove to be the best choice not only for your finances but design preferences as well. You will be given the opportunity to analyze the pros and cons of each feature of the house, so you can save on renovation costs by simply refusing to buy if it doesn’t meet your expectations.
Surprisingly, this is one element that plays directly into one of the most common contributing factors to home-buyer’s remorse. Almost three-quarters of the homeowner population in the U.S. (74%) admitted that they wish they would have rented a home or bought a bigger house instead of the one they currently lived in. This can be easily remedied by giving yourself more buying options, to begin with.
Hire a Mortgage Professional
To avoid the preventable financial woes of regrettable home ownership, work alongside a mortgage professional in your home-buying journey. An experienced mortgage professional will advise you on each financial decision you make throughout this experience, ensuring that you make the best choices for your unique circumstances.
Don’t become one of the millions of Americans who are resentful of their home purchase. Make sure you close on the best home for you and your family by working with a qualified mortgage professional from start to finish. Get in touch with an expert today to get started.
