So, you’re a first time homebuyer! It’s an exciting – and sometimes overwhelming – time.
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 what the top mistakes first time buyers make, you can avoid them.
5 COMMON FIRST TIME HOMEBUYER MISTAKES:
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.
2. Waiting for the ‘perfect’ interest rate:
Let’s face it, rates today are still LOW! Don’t get caught up in the small increases or decreases the rates may have. If you’re pre-qualified and ready to buy, do it. Work with a great lender (we have one if you need a referral!) and they will work to get you the best possible loan program and rate they can.
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 ALL 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.
[Read more: AOL Real Estate, “For First-Time Homebuyers: How To Dodge 5 Costly Rookie Mistakes“]