Buying a home is a big deal. It’s likely the biggest purchase you’ll make in your lifetime, so it’s natural to be a little hesitant. Whether you’re buying the home as your primary residence or you’re an investor looking to make some cash, there’s a lot of money at stake. Below, we’ve made a list of some of the most common home-buying fears people have and what you can do to put your mind at ease.
A Less-Than-Perfect Credit Score
When you know your credit score is less than perfect, it can be very stressful thinking it could cause you to be disqualified for a loan. The good news is, many homeowners have less-than-perfect credit, so the best thing to do is to try to improve your score as much as you can.
Begin by getting a copy of your credit report and make sure there are no mistakes on it. Many people find that they are paying more than they should for mistakes on their credit reports. By fixing these errors, your credit score increases, giving you a leg-up when it comes to getting a low-interest rate on your mortgage.
A Bigger Mortgage Payment than You can Afford
Paying a higher monthly payment than they can afford is a fear many potential home buyers have. The best way to combat this fear is to know exactly where you stand financially and stick to it. Start by gathering all your monthly bills and create a budget. Be sure to include credit cards and any other outstanding and recurring payments.
When you have a clear budget and know your financial boundaries, you’ll know how much mortgage you can afford and be able to confidently shop for a new home.
Declining Property Values
Buying a home is a huge investment, so when property values decline for no apparent reason, it can be quite disconcerting. While many factors impact property values in a given area, you can do your part to help ensure your home’s value stays steady.
Look for a home in a thriving community with a low crime rate. A neighborhood where people feel safe walking the streets and that has a reputation for good schools and hospitals will help keep property values from declining.
Managing Maintenance Costs
Even new homes require upkeep, so there’s no way around these kinds of costs when you own a home. The easiest way to manage these costs, though, is to create an emergency fund that you can dip into when something needs fixing.
As you search for the perfect home to buy, look for one that’s well-maintained by the previous owners and make sure to have an inspection done to uncover potential problems. Try to repair minor issues promptly before they become major problems.
Sometimes it happens that a buyer discovers after purchasing a home that it isn’t what he really wanted. Looking at many homes is exciting and it’s easy to overlook shortcomings in all the hub-bub.
To help you avoid dissatisfaction after the fact, make a list of the features you must have in a home and stick to them. While you may not find a home that has everything, sticking to this list will help you find one that has almost everything so you can justify the purchase and live happily ever after.