Common Mistakes For First Time Home Buyers

Dated: November 1 2018

Views: 195

Image title

Home hunting is exciting, exhausting, and anxiety-provoking, all with good reason. Unfortunately, many people make mistakes that prevent them from reaching their goal. Learn from these tips to avoid making costly errors that could put a hold on that "sold" sign.

Not knowing what you can afford is the wrong way to go into home buying. Even if you can get a mortgage on a place you really should not afford, you will be "house poor" and/or live in great debt for a long time. What the bank says you can afford and what you know you can afford or are comfortable with paying are not necessarily the same.

Ensure pre-approval for a loan before placing an offer. Your assessment of what you think you can afford and the amount the bank is willing to lend you may not agree. If you don't get a pre-approval, you'll be wasting the seller's time, the agent's time, and your own time if you enter into a contract and then discover the bank won't lend you what you need.

Closing costs are a good example of hidden fees, as they usually include several fees that cover final housekeeping matters. Once you're a homeowner, you'll have additional expenses on top of your monthly payment. Before signing the home buyer's agreement, it would be wise on your part to ferret out any and all hidden fees and incorporate them into your budget.

It is important that you consider how the housing market changes in your ideal location, as home prices vary from one location to another. Stay alert to comparable sales (comps) in the area. If they Image titlesell for below listing price, it is a buyers' market. If they sell above listing price, it is a seller's market.

You can browse without an agent, but once you are considering seriously looking at a house, engage a real estate agent. Do not rely on the seller's agent to represent you. The listing agent is the seller's representative and has the seller's interest in mind. A buyer's agent is paid from a commission that is spit with the seller's agent. All-in-all, it is pointlessly risky to negotiate conditions and sale price without proper professional representation on your side.

While compromises in meeting your dream-home desires are necessary in a first-home purchase, do not compromise on your needs. You can do without the living room fireplace or swimming pool; however, don't accept a two-bedroom home when you are planning to have children and will need three bedrooms. On the other hand, use your vision. If the home meets your needs in the location and size, don't let lesser physical imperfections overpower your perspective.Image title

Now that many real estate transaction services are obtainable at the click of the mouse, many people have become too dependent on them. While it is true that loans can be obtained online and houses can be bought as well, failure to establish personal touch with lenders or home sellers could present costly misunderstandings in future or put you at a bargaining disadvantage. It might feel more convenient and less stressful to go through as much of the process as possible online, but you may well find you've simply saved up far more stress and inconvenience for later. In the end, it's better to simply take the plunge at the outset and handle things in person when you can.

Avoiding these mistakes can help you make the right choices when it comes to finding a home you and your family can take pride in. Keep in mind, also, that if and when the time comes, the resale value will be a great help to avoid problems moving on in the future.

Blog author image

Daryl Hanna

Daryl Hanna and The Hanna Group are committed to bringing the respect back to the real estate profession through making sure each and every transaction is handled with the utmost care & respect!! The ....

Latest Blog Posts

A New Way To Shop For Homes In A Virtual World

In a year when we’re learning to do so much remotely, homebuying is no exception. From going to work to attending school, grocery shopping, and even seeing our doctors online, digital practices

Read More

The Surging Real Estate Market Continues To Climb

Earlier this year, announced the release of the Housing Recovery Index, a weekly guide showing how the pandemic has impacted the residential real estate market. The index

Read More

How Low Inventory May Impact The Housing Market This Fall

Real estate continues to be called the ‘bright spot’ in the current economy, but there’s one thing that may hold the housing market back from achieving its full potential this year: the

Read More

Why Homeowners Have Great Selling Power Today

We’re sitting in an optimal moment in time for homeowners who are ready to sell their houses and make a move this year. Today’s homeowners are, on average, staying in their homes longer;

Read More