When you make the decision to buy your first home, there’s a whole spectrum of emotions that typically come into play. With so much money on the line and the commitment of a mortgage, it’s no wonder that home buying is regarded as one of the biggest decisionsf your life. It's also one of the most exciting, too! Here are a few common mistakes of new buyers to avoid if you’re thinking about purchasing your very first home.
Skipping Important Steps
With so much excitement and anticipation of home shopping, all too often many of the little details are either missed or completely disregarded. Things like home inspections and researching the neighborhood are crucial to how you’re going to live in and enjoy living in your home. As eager as you may be, try not to start looking at homes until after you’ve met with a lender to determine your loan eligibility and budget.
Underestimating The Costs
The price tag of the house might be $200,000, but that’s not the same as the true cost of the home and home ownership. Your purchase is an investment and you’ll want to ensure your investment holds its value down the road, so it’s going to take some hard work and financial resources along the way. Just some of the costs you can anticipate are going to be repairs, monthly bills, property tax, municipal services, and closing costs of the transaction, just to name a few.
Developing a long-term financial plan isn’t as fun as house shopping can be, but it’s vital to ensuring you can live sustainably off of what you make. What if in a few years you decide to have a child or two? What if someone gets laid off, or wants to go back to school in five years? Be sure to factor in personal goals and rainy-day savings into your plan as well.
Too Quick To Say Yes
Have you ever bought something and then later decided you didn’t really want it after all? Unfortunately, you can’t return a home like you can a pair of shoes, so it’s really important that you know for certain that it’s the home of your dreams.
You’ll also want to consider your lending options too. Many first time buyers tend to fixate on the lowest interest rate, but depending on how long you want to be in the home, there may be better options for you.
Hiring The Wrong Agent (Or Not Hiring One At All!)
Ask your friends, coworkers, and check online referrals to choose an agent that understands your needs and interests. Picking the wrong agent for you is like going to a car dealership and having the salesperson try to sell you a sports car when you’re expecting twins. When you choose an agent that gets ‘you’, they’ve got your best interests as a buyer in mind, and will support you throughout the buying process. Can you really afford to not have an agent?
If you’re ready to buy your first home, let’s have a chat. Visit my about page to learn more about how I can help you find the absolute best home for you.