Buying your first home in your 20s is as scary as it is exciting. A lot of responsibility goes along with that purchase, so it’s a good idea to learn as much as possible as you go through the process. As ready as you think you are for such a big responsibility, take a moment to browse through the following list of mistakes you should try to avoid.
As a young person, you may feel you’re financially ready to take on the responsibility of homeownership, even if your bank account says otherwise. This is likely to be the biggest purchase you’ll make in your lifetime, so you mustn’t make an impulse decision.
To make sure you’re financially ready, ensure you’re not just buying a house because all your friends are doing it and that you have an emergency fund set up to cover the cost of unexpected situations. If you can pay your own closing costs, have money set aside for taxes and insurance, and you have enough money to pay for any move-in repairs that need to be made, you’re probably financially ready to buy a house.
Hire a Real Estate Agent
While the Internet makes it easy for anyone to shop and purchase a home, it doesn’t mean you should go it alone. Hiring a real estate agent will help you find the perfect home as well as to navigate the complicated waters of the home buying process. Furthermore, you’ll likely get a better deal with an agent by your side.
Don’t Make Decisions Solely on Price
It’s likely you’re shopping for a home within a budget, but price shouldn’t be the only factor when deciding on a home. If you choose a home based solely on price, you may miss out on other vital factors such as a safe neighborhood or the proximity of nearby conveniences. Be sure to look at several factors when searching for your first home.
You can certainly look for a home without getting pre-approved for a mortgage, but not knowing how much home you can afford beforehand can cause you to waste time looking at homes you can’t afford. Furthermore, without a pre-approved mortgage, you could set your heart on a particular home that the bank won’t fund because it’s out of your price range.
Don’t Skip the Home Inspection
Many real estate agents are good at staging a home to make you think it is perfect. You may be tempted to forgo the home inspection based on the appearance of the home, but it’s important to keep in mind that many of the issues in a home aren’t readily visible. Only a trained home inspector will be able to uncover and identify issues such as mold, water damage, etc.
The home inspection should be a non-negotiable part of the home buying process.
Buying a home is an exciting time, especially when you’re young. If you’re buying your first home in your 20s, be sure to keep the tips listed above in mind as you shop so you avoid some of the more common mistakes young homebuyers make.