Top 8 Mistakes to Avoid as a First Time Homebuyer
1. VIEWING PROPERTIES WITHOUT FIRST SPEAKING WITH A BANK OR LENDER
Whether you're a cash buyer or looking to obtain a loan, it is really important to speak with a bank to understand your actual budget, prior to looking for homes. If you are planning on financing, get a free preapproval letter, which is required when placing an offer on a home you like.
2. NOT CONNECTING WITH A REAL ESTATE AGENT BEFORE YOU BEGIN YOUR SEARCH
A practicing Real Estate Agent is going to guide you step by step, with your best interest. Wouldn't you want somebody on your team, representing you at no cost to you, to help you with one of the largest financial purchases of your life?
3. TRYING TO FIND YOUR DREAM HOME AS YOUR FIRST HOME
In the current market, it can be challenging to find your dream home within budget. Make a list: What are your wants vs. What do you really need? Be realistic and look for a home that will suit your needs for the next few years while you grow towards that dream home.
4. TOURING TOO MANY PROPERTIES AND OPEN HOUSES
Buyers who look at too many homes tend to clutter their mind with too many options and then get overwhelmed and disappointed. Be selective in the homes you choose to visit, and when you see something you like, put in an offer!
5. STRESSING ON THE MINOR DETAILS
When visiting a property for the first time, think to yourself, does this fit my primary needs in size, location, floorplan, number of bedrooms and bathrooms? Don't rule out a home just because it might require minor repairs or upgrades. Items like cabinets, countertops, and flooring can be replaced fairly quick and can be a great opportunity for you to customize the space to your liking.
6. FACTORING IN THE FEES
When it comes to purchasing a home, leave some financial wiggle room for additional costs that are separate from the purchase price, such as: inspection reports, escrow closing costs, home insurances, home maintenance, ultilies, property taxes, and monthly HOA fees if applicable.
7. MAKING BIG PURCHASES PRIOR TO CLOSING ESCROW
WAIT until after you close escrow on your home before making any big financial decisions that could affect your credit score and impact your ability to get a loan before closing. This includes: taking out new lines of credit or closing existing lines of credit. Delay buying furniture, television, large appliances, a car, or any big purchases until after closing, or use cash.
8. TRUSTING THE ONLINE HOME ESTIMATE
There are many factors that go into the accurate pricing of a home and many first time buyers make the mistake of trusting the automated web estimates that did not come from visiting or seeing the physical details of the property. A real estate agent will help you with a more accurate price analysis of the home you're interested in.
