In the market for your first home? Don’t make these common mistakes.
Buying your first home is a major milestone and a serious investment, so pull up a chair and read this before you dive into the world of homeownership. If you know the top mistakes first time home buyers often make, you can do your best to avoid them.
5 Common First Time Home Buyer Mistakes To Avoid:
1. Shopping for homes before you know how much you can spend
It’s not just about how much the house is listed for, you need to factor in taxes, insurance, possible HOA fees, etc., and most importantly, what your monthly budget is. Get pre-qualified before you shop so you know exactly how much home you can purchase and will help you determine when, where, and how to buy your first home.
2. Waiting for the ‘perfect’ interest rate
Let’s face it, rates are seriously low. Don’t get caught up in the small increases or decreases rates may have. If you’re pre-qualified and ready to buy, do it. Work with a great lender and they will work to get you the best possible loan program and rate based on your situation.
3. Impulse buying
It’s easy to overlook the small stuff if you find that ‘perfect’ home. But before you make an offer on anything, really think about the longevity of your home purchase and always think resale. Your situation may or may not change in a few years, so make sure that whatever you buy is going to be a good investment.
4. Letting your emotions take over
Buying a home is an emotional process. But make sure you run the numbers and aren’t overlooking anything “quirky” in the home before you rush to buy it. Again, that monthly budget and future resale appeal should come into play here. Or, on the flip side, if you don’t plan to move or sell any time soon, make sure that the home you buy is one you’ll be comfortable in for years to come.
5. Forgetting to factor in all of the costs involved
Again, it’s that monthly budget we talked about. Buying a home comes with a plethora of additional costs: utilities, possible HOA fees, property taxes, insurance, possible remodeling or repair costs, etc. Work with those in the industry to help guide you with cost estimates so you can make an educated decision based on the numbers.
- Getting Prequalified vs. Preapproved
- Buyer Tips: How To Prepare For House Hunting
- Buyer Tips: 7 Reasons To Own A Home
- Search Homes For Sale
- Find a Real Estate Broker
Ready to move into homeownership? We can help.
Schedule a free buyer consultation with a Fred Real Estate Group professional: