What 1st Time Homebuyers Should Avoid When Buying a Home
Buying your first home can be an exciting experience. Besides following our tips for saving for your down payment, there are other important factors to consider. Some common mistakes made by first time homebuyers can be costly and should be averted, when possible. Let’s review some things 1st time homebuyers should avoid.
When preparing to buy your first home, be sure you:
- Don’t ignore your budget: Ignoring the budget are first time homebuyers number one mistake. Compose a list of your monthly expenses. Remember to include quarterly or annual amounts, such as auto insurance premiums, so you don’t stumble upon any surprises later in the year. Total up your monthly expenses, excluding your monthly rental payment. Deduct these monthly expenses from your monthly net income. The remaining amount is a ballpark figure of what you can afford to spend on your new home each month. Getting pre-qualified gives you a more concrete idea of what you can afford in a new home. However, keep in mind what the bank says you can afford and what you know you can afford are not necessarily the same amounts. Keep your home-hunting in neighborhoods you can afford. If you shop in neighborhoods out of your price range, you’re likely to end up trapping yourself into a home you can’t afford and stretching your finances way too thin for comfort.
- Don’t settle: Make a wish-list of your ideal home. Be sure to highlight the features in a home you most desire and must have. More than likely, this is a long-term commitment. You want to be happy and content with your decision since you’ll be the one living with it. Don’t regret your first time homebuyer experience by settling.
- Don’t be over-picky: As a first time homebuyer, being picky is fine, you just don’t want to over do it. Don’t put yourself in a corner and miss out on a great house over bad carpeting or outdated wallpaper. If there are a few cosmetic adjustments or some minor changes that need to be done, you can easily address these factors later. You may even be able to renegotiate and adjust your offer to reflect these contingencies.
- Do not skip hiring a real estate agent: First time homebuyers tend to overlook this step thinking it will save them money. Hiring someone to act in your best interests can not only save you time, but money as well. Buyers agents familiarize themselves with homes, neighborhoods, financing, and a plethora of other information in the home-buying process. That fee you’ll pay them is worth every single penny. You’re paying for their expertise. They can also provide recommendations for appraisers, real estate attorneys, title companies, and so on. Do yourself a favor and hire a Realtor.
- Don’t skip that inspection: Home inspections should never be overlooked. Having an inspection done by a qualified inspector provides peace of mind that your future home doesn’t have any major issues. Waiving a home inspection may result in unnecessary anxiety, stress, and expense. A home inspector will probe your future home in much more detail than you or your real estate agent did when you first visited the home. They’re trained to know what faults to watch for that may forebode issues in the future.
Obviously, these five tips aren’t all inclusive. There are many other issues to consider in the home-buying process, e.g., buying new construction. When you’re ready to start shopping floor plans and communities for your new home, contact us, we’ll be waiting to assist you.