10 First-Time Home Buying Mistakes You Should Avoid Making In Ghana

Buying your first home is a dream of every Ghanaian. But before you can achieve that goal of owning your first home, you have to consider and deliberate on a few things, from looking for the perfect neighborhood to financing the purchase. 

Because buying a home is the biggest investment most of us will ever become involved in. Yet people sometimes take less time over it than they do when buying a new vehicle.

There is more to finding that perfect home than the interior features and the lawn setting. you may take things for granted, dwell on others when we shouldn’t, and sometimes you later wish you had known more about the home buying process. 

To help you avoid making costly mistakes in the buying process and potentially save some serious cash, we’ve outlined ten common mistakes to avoid when buying your future humble abode.

10 Biggest First-Time Home Buyer Mistakes 

1. Rushing the home-buying process

The biggest mistake when buying a home is to rush the home buying process. Many first-time homebuyers usually approach this process with an urgent mentality. They think they need to move quickly otherwise they may lose the chance to own the property. This can sometimes lead to fear of missing out and spur-of-the-moment decisions.

2. They want to buy from the hot neighborhood.

You don’t want the hot neighborhood? Do you, because if you do, you might want the next hot neighborhood. You will have to pay at the top of the market for the cool factor now but if you buy in the next place to become hot, you’ll have equity for years.

3. Not aware of home loan programs

This is common in first-time homebuyers. Because they are new in the home buying process, they don't look beyond the box. They tend to concentrate on what they want and what they can afford.

 However, if you’re new to this process, you might not know about some selected government programs that can help you qualify for a mortgage without necessarily having a massive down payment.

For example, the following are a few common mortgage options in Ghana:

• If you are a public servant in Ghana, you may qualify for government affordable housing programs through the National Housing and Mortgage Fund.
• You may also qualify for the Government Rent-to-own scheme where you initially rent the home and eventually own the property at a future date.

Once you finally decide on a lender, ask them about potential mortgage programs for first-time homebuyers. You should ask the right questions while you still can because you never know until you ask the right person.

4. First-time buyers are misled by home designs 

There is a reason people hire staging companies to do minor renovations on houses. It helps sell homes and so don’t let the beauty of the interior decoration convince you to make an offer on the house. Is far more important to have a house that doesn't flood than to live in a shiny house with threats of floods. 

5. Emptying your savings to afford a house

Another biggest mistake first-time home buyers make is that they buy at the top of their Range. Buying a house is a big investment, but it’s not a go big or go home purchase. Don't drain your current savings to afford the dream home. Don’t you want to travel, have a decent car or be able to weather a job loss? Always make sure you buy below what you can afford.

6. They make emotional decisions

As a first-time homebuyer, it’s okay to be nervous about such an important decision. But don't let those nerves translate into emotional decisions. Make a good financial decision based on estimations and not dwell only on your heart. Make a smart purchase of your home by making sure the numbers work. 

7. Forgoing an inspection to save money and time

As a first-time buyer make sure you know what you're paying for with your hard-earned money. Pay for solid inspections and know what's underneath the floorboards and behind the walls, and be able to walk away knowing you made the right investment decision.

Otherwise, you risk buying a home with thousands of cedis worth of hidden damage. That could be a potential financially crippling problem.

8. They hunt for others and Appearances

Don’t look for a house that will impress your friends, buy a house that works for you. It’s better to have a small house for your family, than a master bedroom that looks good to your friends and relatives. You will appreciate that house every day, and the likes aren't worth it.

9. They ignore other costs associated with homeownership

First-time home buyers only think about the Mortgage Payment. However, the mortgage payment is only one expense of owning a home. You have utility costs, property taxes, maintenance, etc. Be sure to make these estimations because they can be significant and check out the property taxes and other expenses early.

10. They don't consider location they consider neighborhood 

The three drivers of real estate are location, location, and location. It's very predominant to see first-time home buyers in Ghana mentioning neighborhoods that will not help their families. For instance, if you have or intend to have kids the key issue is the school location factor and not neighborhood. You may have an otherwise great neighborhood with a great view but find yourself outside the admittance area for the best school. 

Summary 

Once you find your dream home, avoid making an instant offer. Ask yourself at least ten times if it is indeed what you want. Purchasing a house is a long-term investment decision. It means you will be staying in the house for years. If you take these precautions upfront, you’ll be able to protect yourself from making costly mistakes in the buying experience.