Avoid Homebuyer’s Remorse

82% of Americans who purchased a home in 2023-2024 have as least one homebuying regret.

Buying a home is an exciting and meaningful experience, and we think that statistic should be zero! So, how do you ensure you’re not feeling buyer’s remorse after making one of the biggest financial decisions of your life? Read on to learn how to recognize the hidden costs and unexpected realities that may pop up along the way – and how to stay one step ahead of them.

Underestimating the Hidden Costs

The price tag on your home is just the beginning. In PA, homeowners spend an average of $14,000 per year on homeownership costs, which include things like utilities, maintenance, taxes, and repairs.

How to Prepare:

• Ahead of buying, use tools like our monthly mortgage payment calculator to help give you a realistic perspective on the figures.
• Build a budget that accounts for property taxes, HOA fees, and seasonal maintenance.
• Set aside 1-2% of your home’s value annually for repairs and upkeep.

Buying a Home That’s Too Expensive

It’s easy to fall in love with a home that stretches your budget. But overextending financially can turn homeownership into a source of stress. Another common regret among homebuyers is spending too much. In 2024, 48% of buyers wanted an affordable home, but a whopping 37% bought a home that was more expensive than they planned!

How to Prepare:

• First-timer? Explore options like our First-Time Homebuyer Program*.
• Factor in closing costs. To get a rough estimate of how much you’ll pay in closing costs, use a closing cost calculator – you’ll need to enter the county your home’s located in, home purchase price, and down payment amount to receive an estimated closing cost range. Include insurance, utilities, and unexpected expenses (experts often recommend budgeting 1%-4% of your home’s value annually for maintenance and repairs) in your monthly estimate.

Purchasing a Fixer-Upper

HGTV can make buying a fixer-upper look fun, budget-friendly, and filled with Pinterest-worthy results! But in reality, renovating a home often involves more time, energy, and surprise expenses than expected.

While skipping a move-in-ready home’s higher price tag may seem like a way to save up front, you could end up paying more in the long run for a fixer – especially if major systems like HVAC, plumbing, or roofing repairs are needed.

How to Prepare:

• Get a thorough home inspection before purchasing.
• Request quotes from licensed contractors to give you a better understanding of what the numbers and timelines for necessary work would look like before committing.
• Prioritize renos that protect the home’s value, such as curb appeal, energy efficiency, and functionality.

Not Thinking Long-Term

A dream kitchen may wow you now, but will the layout still work if your family grows? Many buyers later realize they didn’t factor long-term needs into their home search wish list. School district, commute time, or limited resale potential can impact homeowners long-term.

How to Prepare:

• Think ahead 5-10 years. Will this space and location still work?
• Look into local school ratings, neighborhood amenities, and market trends.
• Consider features that appeal to the majority of buyers, not just you and your current lifestyle.

Settling for Too High of an Interest Rate

When interest rates are rising, it can feel like now or never – but rushing into a mortgage with a high rate can lead to long-term regret. A higher interest rate means higher monthly payments and significantly more paid in interest over the life of the loan.

How to Prepare:

• Compare rates across lenders and check your credit score before applying. If your credit score would benefit from a boost, take some time before shopping for homes to focus on healthy financial habits. A higher credit score may translate into savings on interest rates.
• Explore our First-Time Homebuyer Program to save on upfront costs like origination, appraisal, and application fees.

Avoiding these common regrets ahead of buying can make homeownership a rewarding experience. And when you’re ready to begin the journey, we’re here to help. Meet our team and get started today.

*Additional options for first-time homebuyer products/terms available. PMI may be required. Contact one of our mortgage originators to find out which one is right for you.