Buyer Topics - First-Time Home Buyers

First-Time Homebuyer Mistakes to Avoid

Being a first-time homebuyer or even being years out from the last time you purchased a home naturally brings questions. As the market is ever-changing, there is no guarantee that the research you did last month, and certainly not the experience you had years ago, will still be the same. Having a realtor is the place to start when making such a sizeable purchase, as they will be your guide through the process, and help you avoid getting into situations you don’t want to deal with. Today we are going to talk about some mistakes you want to avoid as a first-time home buyer.

The first mistake to avoid when buying a home is to start shopping before getting pre-approved. If you are buying a home, the first step is always going to be getting pre-approved. You have to get pre-approved before you start looking at properties so you know how much you can afford. You also need that pre-approval letter before you can write an offer on a home. It is extremely important to keep your eyes from browsing homes before getting your letter of pre-approval and knowing exactly where you stand. Your realtor can connect you with a lender who will crunch numbers for you and help guide you to exactly where you need to be for your purchase. The last thing you want is to find a house and fall in love with it, only to find out you aren’t in that price range. It only causes heartbreak to shop before you know!

Another thing to be aware of when buying a home is the costs associated with your purchase outside of the ticket price. A realtor is going to help you in the process of buying a home by making sure you understand the breakdown of all costs involved with your purchase. You have a multitude of things to consider, in and outside of finances when you are buying a house. You’re packing, cleaning, sorting, working, and maintaining your regular life. There are costs you do not want to be surprised by in the midst of everything else you are juggling. Some costs you should go over with your realtor include closing costs, HOA fees if you are moving into one, insurance, property taxes, and anything you may need for repairs after closing.

The next thing you must avoid at all costs as a first-time home buyer is skipping inspections. When buying a home, you go through many emotions, one of them being excitement, sometimes coupled with equal parts fear. Occasionally, the fear can drive a buyer to want to rush the process and skip a home inspection. This is never something you should do as a first-time home buyer, or buyer of any kind (investors and other special circumstances excluded).

Getting a home inspection ensures that you know everything you need to know about the house before making a huge commitment to it. At this point in the home buying process, you can still rescind your offer if things are beyond what you can afford to repair if not able to negotiate with the seller. Sellers and buyers negotiate on repairs to be done once inspection reports come back. Buyers can request what they deem important to them be repaired before they purchase based on information from the home inspection. The sellers can then take on what they find reasonable and affordable, and kick back to the buyers what is going to be their responsibility as the new homeowners. Having a home inspection allows for the negotiation process to happen, allowing the buyer to benefit from knowing and requesting repairs before moving in.

Our final mistake to avoid when you are buying a house is age-old, but still happens every now and again during a transaction. Once you’re pre-approved, have an accepted offer, and are waiting for repairs to be done, you have a glowing closing date on the calendar, money in the bank, and eyes bigger than the transaction! The new car on the lot down the street is going to look amazing in the driveway of my new house, right? Wrong! Do not go out and make any major purchases during this time or you can jeopardize the purchase of your home. It may be tempting to go to the car dealership, get a new job, or open a new credit card, but these things will impact your credit, approval, and cost you your home.

If you are buying a home, surround yourself with the right team to ensure your big move is seamless and to keep you from making any of these mistakes during the process! The more you know, the more enjoyable shopping for and buying the home of your dreams is. There are serious notes to this major purchase in your life but having a realtor you know and trust by your side to keep you informed and manage stressful parts of the transaction makes it fun and manageable.