The process of buying a home can be both exciting and overwhelming. It’s filled with missteps that any new home buyer could fall prey to. You want to buy a home you love and can afford but the steps you take can prevent you from achieving this dream.
Here are the 5 common mistakes first-time buyers often make and with advice on how you can avoid them.
Failing to consider additional expenses Many first-time buyers are forced to go into costly credit card debt simply because they fail to factor in all the costs of homeownership. Once you’re a homeowner, you’ll have to insure your home against disasters, pay property taxes, and make any repairs the house needs. Create a budget and leave room for other expenses.
Not getting pre-approved for financing early on Before you can start shopping for a home, consider getting a pre-approved to know what the bank is willing to lend you and exactly which houses you can afford and which are out of your reach. It won’t make sense to place an offer on a home only to find out later that the lender won’t give you what you expected.
Making decisions based on emotions While shopping for a place, you may walk into a home that you think is perfect and you even start envisioning your life there, and nowhere else. You forget about the cost and are ready to compromise on the important things. Keep an open mind based on what is financially sound to avoid putting yourself in a bad spot.
Messing up with your credit score before closing Just because you’ve been pre-approved does not mean that the funding is guaranteed. A lender may reduce or withdraw the offer if your income levels or credit score changes drastically. While shopping for a home, pay credit balances, pay your bills on time, and avoid making major purchases using your credit card.
Not hiring a REALTOR® Some first-time buyers believe that they’ll be able to save money by not using the services of a real estate agent. There’s no cost to you for working with a REALTOR® since the commission is paid by the seller. A REALTOR® will give you truly independent advice and work in your best interests.
As a first-time homebuyer, this may be your largest purchase ever and it’s important to be aware of potential pitfalls so you can avoid them.
It's my goal to help you buy your home with confidence. Don't hesitate to contact me to get your buying journey started.