Conventional wisdom says that buying a house should give you nothing, but excitement and a sense of accomplishment. While this is true in most cases, there are also those who felt fear and uneasiness during and after the process. This is because they keep wondering if they have made the right choice. After all, you would not really know until problems start popping up as you live in your own abode.
Homebuyer’s remorse is common, with more than half of buyers having regrets about some aspects of their purchase. It could be the neighborhood (which turns out to be noisy at certain times of the day), the size of the house (which is smaller than you expected for your growing family), or the absence of a bigger yard (which you later realized because you recently got a dog).
Buyer’s remorse can be a bit alarming if you are thinking of buying a house. Fortunately, it is possible to avoid that by knowing where the most common regrets spring from.
Not So Happy With the House
One of the main reasons for remorse is having a home of the wrong size, preferably too small. Some get so focused on the neighborhood that they fail to branch out and miss good deals in other real estate markets. This is why it is important to be flexible in terms of location to find the right home with the rooms and features you need.
Buying More Than What They Can Afford
Buyers who think that they have found the right house get too excited, causing them to make uncalculated moves like paying more than the asking price to outbid other buyers. This spells financial disaster later on, especially if you buy more than what you can afford. Altius Mortgage and other mortgage lenders in Salt Lake City suggest setting a budget and getting a preapproval first before going house hunting.
Not Saving Enough/Paying a Bigger Down Payment
Many homebuyers made little down payment, but wished they had paid more initially. This is because putting too little money down comes with higher rates and private mortgage insurance (PMI), which adds to the monthly payment. This is why you may want to pay at least 20% to get lower rates and monthly payment, as well as avoid PMI.
Problems With the Neighborhood
Some buyers find themselves easily persuaded by the appearance of the home, failing to assess the quality of the neighborhood. It is important to find a home with all space and features you need, but you also need to get a feel of the neighborhood. It is best to walk around it first or talk to your potential neighbors. You might also want to check the nearby amenities and access to transportation, especially if you do not have a car.
These are just some the aspects of the home purchase that many buyers regret. You can avoid remorse later on by doing your homework and making sure that you are financially and emotionally ready for homeownership. You can also get in touch with a reliable lender to learn more about your loan options.