Taking The Plunge Into Home Ownership: Helpful Hints To Avoid Buyer's Remorse

You need somewhere to live, and it makes sense to put money towards eventually owning something outright. There is a sense of security in that, and should you ever sell one day, you stand to make some good money off this investment. This is an exciting time, but also one fraught with anxiety. Choosing the right home can seem like a daunting task; so much paperwork and documentation to gather. You are making the biggest financial commitment of your life, and that is a wee bit scary. There is no magic formula to guarantee you will avoid any blunders, but with a bit of forethought, you can tilt the odds of a successful purchase in your favor.

Just Because You Can ‘’Afford’’ It Doesn’t Mean You Should Buy It

You will get all your income information together, and you will get pre-approved for a loan of a certain amount of money. Then, when buying a home, this is the number you will keep in mind, and will most likely end up spending this much, or very close to it.

Then you move in, and the bills start coming; all of a sudden you realize you are spending a lot more on the house than which you feel comfortable. Your lifestyle takes a big hit, your savings goals suffer, and you feel like you are sacrificing everything to the mortgage gods. Being able to truly afford something is about a lot more than simply having that money available in your bank account to cover the check.

While it is natural to cut corners a bit to make way for home ownership, be realistic about it. Don’t tell yourself you will be okay with never going out to eat again because you think you will be happy cooking in your own kitchen every night; don’t give up that yearly international trip if you really love it. Don’t cut back on your monthly contribution to your savings if doing so makes you feel really uneasy.

Clearly Define What You Need and What You Want, and Don’t Get Swept Up by Bells and Whistles

It is important to get super-clear on what you need in your home—the aspects that are a must, such as more than one bedroom if you know for sure you will be having kids in the next couple of years, or being a reasonable distance from your job. This will form the foundation for your search. Then, think about the things that would make the home most ideal, but are not crucial.

The ‘’wants’’ are the fun stuff, and it is easy to get swept up in these things because they create all sorts of good emotions when looking at the house. So good in fact, many people throw important ‘’needs’’ out the window, convincing themselves it will be fine. Sure, that fireplace really adds something to the living room, that kitchen is really great—but, if buying the house means creating a nightmare commute, when you were so adamant about being somewhere to avoid just that, be very careful. Those elements of the house will quickly lose their thrill, and leaving you with a problem.

Don’t Pass by a Great House in the Hunt for One Even Better

This is a huge decision, and naturally, you don’t want to rush into anything. You are spending a lot of money, and you want to get a good idea of what is out there before settling down with just one house. Now, since you clearly defined the type of house you are looking for, as recommended in step 2, you can make purchasing decisions with greater confidence. If you see a house that really fits the bill, and you really like it, make an offer quickly. Don’t spend months trying to see if you can find something even better.

Kelli Cooper, writing for Pinnacle Homes enjoys blogging about all things real estate.