Having a roof over your head is a dream for almost every individual, whether rented or purchased. However, getting that ideal house to buy or rent is not an easy task.
From a high number of conmen lingering in almost every corner with posters and billboards to a lack of knowledge, home buyers ought to be careful to avoid making mistakes that would cost them later.
Here are some common home-buying mistakes to avoid.
Not doing proper research and preparation
As a first-time house buyer, it’s advisable to take time to analyze assets, decipher debts, and get pre-approved for finance before plunging into the house hunt.
It’s also wise to go the extra mile to know the neighborhood. Remember, you are not just buying a house; you are also buying a location.
It’s important to find out about the quality of schools, the crime level, transport, and possibly upcoming zoning issues. Not all parts are the ideal spot to live.
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Not Hiring an Agent
Unless you are well-versed in real estate law and property negotiations, you should never fall into the temptation of footing alone in home ownership.
A professional realtor will help you in many ways, from paperwork to negotiating offers and conditions and finding the best lawyer or other professional you may need.
They will shortlist properties for you based on your wish list. They typically know every house on the real estate market, and it’s their job to find the one that fits your needs and budget.
If you’re buying a home without a realtor, then you’ll have to sift through all the available options yourself.
Not Understanding the Full Cost of Home Ownership
When living in a rented house, the landlord cushions you from monthly expenses such as insurance, sewer bills, garbage bills, and maintenance, among other expenses. These are some of the expenses you will be responsible for as a homeowner.
Going Beyond Your Budget
Sometimes home buyers spend beyond their budget because the property looks much more appealing. This is, however, a mistake that should be avoided.
What you need to do to buy or build your house cheaply in Kenya
When a lender provides a pre-approval or pre-qualification letter, they typically include the maximum amount they will lend you. This, however, does not mean you spend the whole amount.
Spending more than you can sensibly afford leaves, you exposed to potential financial shocks, including rises in interest rates.
Choosing the wrong mortgage
All mortgages are not the same, and it’s advisable to study various mortgages before making a decision, as this can save you hundreds or thousands of shillings.
Although it is not required, most home shoppers end up getting a loan through the lender who pre-approved them. So it is a good idea to do your research with lenders early, at the pre-approval stage.
