Buying your first home is a huge decision. This is one of the biggest purchases you will ever make in your life. Don’t make the same mistakes as other first-time home buyers. Prepare yourself for this exciting purchase by avoiding these 7 common mistakes.
1. Not hiring a real estate agent.
Going into your first home buying experience with someone who knows the ropes is the best decision you can make when buying a home. Hire an agent and save yourself from stress, over-paying, and legal mistakes. There’s a lot more that goes into buying a home than you may think, find someone who can help guide you through the process. Do your research to find a great realtor in the area you want to buy a home. They will have the best knowledge about the neighborhood and comparable home prices in that specific area, giving you the best chance to find your dream home at a dream price. Real estate agents also have access to the Multiple Listing Service (MLS) llowing them to search for all available homes in your area.
2. Choosing the wrong lender.
Don’t just pick the first lender you find. Make sure you meet with a couple different mortgage lenders and find the one that you feel most comfortable with. This person will dive into all your finances, walk you through the mortgage process, and make or break your home buying experience. Choosing the right lender comes down to a lot more than the numbers.
3. Not getting pre-approved.
Finding your dream home is hard enough, don’t let it slip through your fingers by not getting pre-approved. Getting pre-approved should be your first step when you decide to buy a home. This will guide your house hunt by giving you a budget to stick within. Once you find a home, your mortgage pre-approval will give you an edge over buyers without pre-approval. Sellers and agents are more likely to sell to and work with buyers who are pre-approved.
4. Forgetting to factor in hidden costs in their budget.
This is one of the biggest mistakes for first-time homebuyers. You can’t forget about closing costs, insurance, property taxes, utilities, maintenance, remodeling, and much more. Going from renting to buying is a huge difference in budget, you’ll be paying for a lot more than just your mortgage, you need to be prepared.
5. Confusing home wants with needs.
Everyone has a wishlist for their home, unfortunately the odds of you finding everything on your list is pretty slim. Finding a great home means compromising. Figure out what you’re willing to compromise on and what you are not. Decide on your needs (bedrooms, bathrooms, garage, square footage, etc.) and stick to them. Stay focused on homes that meet your needs to keep the home buying process moving.
6. Not doing your research.
Finding a great home takes time. Do your research on the neighborhood you want to be in, your budget, the style of home you want, the home buying process and everything else in between. Doing your research will better prepare you for one of the biggest purchases you will ever make in your life.
7. Overlooking resale value.
As a first-time homebuyer, the home you buy probably won’t be the home you retire in. At some point you’ll want to sell. Make sure to consider the resale value when purchasing your first home. Is it in an up and coming neighborhood, is it outdated, do you plan to renovate? These are just some of the factors you should consider when figuring out it’s potential resale value.
Buying your first home is exciting, but don’t let the excitement cause you to make mistakes. Buying a home is one of the biggest purchases you will ever make. By avoiding these simple mistakes you can move into your new home with confidence instead of buyers remorse. Thinking of buying a new Thayer Home? Give us a call today to see how to get started, we can walk you through the process and help you avoid making these same mistakes.