Are you getting ready to purchase your first home? This can be exciting but grueling and challenging at time. Not to mention the fear that comes along with it. Renting a place is much different, you have less responsibility and worries but when you purchase a home, many things come into factor. For most people it may seem easy, they find a house that they love at a reasonable price but it is not that simple. Many of those people make common mistakes that hurt them in the long run. This article provides you with some of the common tips that most first time home buyers make when purchasing a home.
1. Not Knowing What You Can Afford
One of the first things that you need to know is how much can you afford. If you are a first time home buyer in your early 30’s, maybe save your money for future investing because this is your first home but it will certainly not be your last. We suggest that you keep track of your monthly expenses and plan for any upcoming expenditures that may arise such as homeowners insurance, realtor fees, and loan payments. Keeping track of your current expenses is the key to figuring out how much you can afford.
2. Skipping Mortgage Qualification
Another big mistake that first time home buyers tend to make is to skip their mortgage qualification. Make sure to get pre-approved for a loan before placing an offer on the house of your dreams. This is especially true if you have little to no credit or an unstable income.
3. Not Considering Further Expenses
Upon being a homeowner, you will encounter expenses on top of your monthly mortgage payments. Unlike renting, you’ll be now responsible for paying property taxes, home insurance and making any repairs the house needs.
4. Neglecting to Inspect
Before going into Escrow and close on the sale, you have to know what kind of shape the house is in. Just like buying a used car, you must give it a thorough inspection in order to know the car is fully functioning. This will allow you to avoid unexpected repairs that cause headaches to say the least.
5. Not Choosing to Hire an Agent or Using the Seller’s Agent
Walking into an open house without a qualifies real estate agent is one of the worst mistakes on can make. Real Estate Agents are held responsible to act on both the seller’ and buyers’ best interest so we suggest that you contract an agent of your own so that you two build a mutual relationship that is long lasting.
Once you’re seriously shopping for a home, don’t walk into an open house without having an agent (or at least being prepared to throw out a name of someone you’re supposedly working with). Agents are held to the ethical rule that they must act in both the seller and the buyer parties’ best interests, but you can see how that might not work in your best interest if you start dealing with a seller’s agent before contacting one of your own.