As with any new experience, one can make mistakes due to lack of information and experience. The same goes for buying you first home. It can be a complicated and stressful experience if you go into it without doing your research and due diligence. These are five of the most common first time home buyer mistakes made and how to avoid them.
Only Thinking of the Mortgage Payments
The first thing you think about when planning to buy your first home is the monthly mortgage payment. How much can you afford to spend each month without defaulting? While it is an important factor to think about, you cannot focus solely on these payments.
There are many other expenses that come with owning a home. There are still utility bills to pay each month, annual property tax, homeowners insurance, and unexpected home repair costs. Make sure that you still have money left over each month to cover these expenses and to put away for unexpected expenses.
Don’t forget about the additional costs that come with buying a home either. You will have to pay closing costs, title insurance, and inspection costs. Make sure to take a good look at your finances before considering buying a home.
Working With a Bad Realtor
One of the most common first time home buyer mistakes is working with a bad realtor or no realtor at all. It’s definitely recommended that home buyers hire a professional to help them through the home buying process, especially if problems occur during the transaction.
Working with a bad realtor can affect your home buying experience immensely. If they are difficult to get a hold of or won’t take you out to see properties, you will grow frustrated with them. While it’s important to work with a realtor, it’s just as important to work with a great one.
Skipping the Home Inspection
Buying a home is an expensive process. Every penny you spend is an investment. This includes the home inspection. Some first time home buyers may decide to skip the home inspection in order to save some money. This is one of the biggest first time home buyer mistakes you could make!
Skipping out on a home inspection puts you in jeopardy of finding a major problem in the house that you are responsible for fixing after settlement. This could be termites or leaks or just about anything! You want to make sure you are spending your money on a house that is in good condition.
Interviewing Only One Loan Officer
You wouldn’t buy the first house you see without looking at other properties, right? You want to see what else is out there to make sure you are getting a good price for something that you want. The same goes when shopping around for a mortgage.
Make sure to talk to different loan officers to see what they can provide. One loan officer may be able to give you a lower interest rate than another. If you aren’t sure where to start, ask your real estate agent for some recommendations on who to speak with.
Not Seeing a House for What It Is
It’s easy to write off a house because you didn’t like the way the current owners had the furniture set up or the colors on the walls. It’s important to look past the items and furniture in the house. Try to see it as it is. Use your imagination and try to imagine the house empty. Do you still dislike it?
It may be difficult the first few times, but the more homes you see, the easier this will be. You don’t want to miss out on your dream home because you couldn’t get past the ugly green color in the living room or the stained carpets. These things can all be changed and improved.
Avoid These First Time Home Buyer Mistakes and More
These are just a few of the first time home buyer mistakes that are made every day. There are so many more out there. It’s important to find a great real estate agent who can cater towards your needs and keep you up to date on the transaction. You must think about costs other than your mortgage and shop around for loans. Never skip the home inspection and always look past ugly furniture or wallpaper.
If you avoid these mistakes, you’ll have a great experience buying your first home!
