Buying a home is an exciting time. However, first-time home buyers sometimes make mistakes in their quest for a home. Here are a few common mistakes to avoid:
No Mortgage Pre-Approval
You should not start looking at homes until you know how much home you can afford. You are setting yourself up for disappointment looking at homes outside of your price range. Meet with a mortgage loan officer first.
Making Big Purchases
Buyers need to avoid applying for new credit or taking on new debt as this will affect your mortgage approval. Do not purchase new furniture, new car or other high-ticket items until after you close on your home.
What You Need and What You Want
When you start your home search with your real estate agent, you need to have a good grasp of what the most important features your home must have. Top of the list might be location, size and number of bedrooms. You may also want a home that features a finished lower level, but the budget may not agree. It is best to give your real estate agent a list of your needs as well as your wants. In the end, you do want to be happy with the home you purchase since you will be living there for years to come.
Sometimes first-time buyers have larger dreams than budgets. Your first home will probably not have everything on your list. Be willing to compromise and make concessions.
Not Communicating with your Real Estate Agent
You need to talk to your real estate agent about expectations for the home-buying process. Ask your agent how to handle open houses or showings if you see a home online. Your agent should also be scouting out homes that meet your expectations and let you know how he or she will communicate that information to you. If your agent is not showing the kind of homes you are interested in, you need to let him or her know. You should always have confidence in the experience and knowledge that your agent will share with you.
Not Having a Home Inspection
A whole-house inspection is worth the investment. Any issues with the home will be pointed out to you so sales terms can be renegotiated. If there are overwhelming issues with the home, you will need to stop the purchase process and start looking for another home.
Not Saving Money for a Long-Term Budget
Besides the mortgage payment, you will have real estate taxes, homeowner’s insurance, utilities and maintenance costs to factor into your budget.
Not Doing Research
If you find a home that appeals to you, do your research on the area. Visit the home at different times of day. If schools are important to you, you will need to contact them with specific questions you may have. Remember, once you have purchased the home, you can change things in your home, but not the location.
Not Thinking About ReSale
If the home you are interested in is painted an odd color that you find appealing in an artsy way, you will need to remember this color has limited appeal and you may have to paint the exterior of that home in order to resell it. Before you buy your home, think about what it would take to resell it.
Look for homes for sale here.