Now is a great time to buy a home in Nashville. While home prices are currently low, the value of real estate is steadily increasing. However, even buying a home at a good time can be a bad decision if you make a classic home-buying mistake. Here is some advice on how to avoid the most common buyer’s mistakes.
1. Make a Healthy Down Payment
If you can get a good deal on a home in Nashville with a low down payment, you may begin thanking your lucky stars. However, it’s not always wise to opt for a low down payment. Mortgage companies see buyers who can’t afford a 20% down payment as less stable, and they charge more in interest and insurance fees. Wait until you can afford to make a sizable down payment before you start looking at homes.
2. Remember Added Costs
When you figure on your monthly costs, it’s a mistake to simply calculate your mortgage down payment. Other costs, like insurance and property tax, can add up quickly and make the home out of your price range. Do a thorough assessment to find out what the real monthly total will be.
3. Be Frugal on Extras
When you buy a new home in Nashville, you may be tempted to buy all new appliances and furniture as well. This mistake can quickly put you into a lot of debt. Instead, create a long term plan for your finances, and buy new accessories when you have a surplus in cash. If you feel that you can currently afford a few new pieces, the buy them; just be careful not to splurge more than your budget can handle.
4. Remember Your Budget
When you are shopping for homes, you may be tempted to make the push and buy a home that’s a little out of your range. This mistake can put stress on your wallet for years or decades to come. A payment you can’t afford can compromise your entire ownership of the house, and you might end up having to sell at a loss in a worst case scenario. Work with a pre-approved mortgage specialist to determine what your spending range is, and stick to your limits.
5. Get an Inspection
Before you make the final purchase, always get an inspection. A Nashville home inspection company can find problems that you missed when examining the home. While you may find the step unnecessary, you certainly wouldn’t want to be surprised a few months down the road.
Buying a home is a long process, and it’s important to stay level headed throughout the whole thing. Be realistic about what you can afford and you’ll be more likely to be satisfied with your purchase years down the road. If you are unsure of the steps to take during the home buying process, consult with your realtor or another knowledgeable source; someone always has more experience than you and can guide you through the process of buying a new home.