Buying a home often brings out an array of emotions for people. Excitement, anxiety, stress, confusion, and many more feelings that leave homebuyers overwhelmed. This is especially true when it comes to first-time homebuyers, getting their first taste of the housing market. The reality is, with so many steps in the homebuying process, it’s easy to get lost in the transaction.
However, aside from working with an experienced and trustworthy real estate agent, there are certain mistakes that first-time homebuyers often tend to make. By keeping these at the forefront of your homebuying endeavor, you can minimize the potential risks that can come from the transaction:
1) Overspending on a Home
We can’t stress this enough. Often times, first-time homebuyers might find themselves approved for a larger loan than they had initially expected. This does NOT mean you can throw your original budget out of the window and start looking for a home that meets that loan limit! This is one of the most common mistakes any first-time homebuyer can make, as they forgo what they know they can afford, and go with what lenders tell them they can afford.
Keep in mind that a bigger house means bigger bills, and that the reality will only set in once those payments start coming in. Our suggestion? Stick with your budget. You know your limits better than the lenders do.
2) Not Knowing Enough About Loan Types
First-time homebuyers these days have an array of programs and loan types they can choose from. Another common mistake that we often see with first-time buyers is a lack of understanding about each loan, and how it impacts their purchase, payments, and process.
Although a realtor often comes in handy when deciding what type of loan program best fits your needs and capabilities, it is absolutely crucial to do your research. Take what lenders tell you with a grain of salt. Then go home, do your research (or consult a professional), and come back knowing exactly what you want.
3) Not Going Through a Home Inspection
Sure, the house may seem impeccable from your perspective, but there are many underlying factors that cannot be so easily seen by the naked eye. Since home inspections aren’t necessarily required, first-time homebuyers may find themselves rushed through the process by hasty sellers.
Doing a full home inspection can reduce the risk of any future problems that could arise. Whether in terms of plumbing, electrical, foundations, or other underlying factors, a home inspection can save you a lot of headache in the future.
4) Limiting The Search Radius
One of the most important things for first-time homebuyers is having their home close to work, schools, or community amenities. However, if you become too zoned in on a single neighborhood, it may lead you to missing out on an amazing property that’s not too far away.
Although it may seem inconvenient, try expanding that search radius just a bit. You might be pleasantly surprised to see all the different options you have available.
5) Work with a Real Estate Agent
Buying a home is a long and difficult process, and easily becomes overwhelming if you don’t know what’s going on. Finding a qualified, experienced, and most importantly, trustworthy, real estate agent can be difficult, but can pay off loads in the end.
Working with a proper real estate agent (or team) ensures that your interests are always represented, and your investment is one that will keep you and your family safe and secure. That’s why our clients have said such amazing things about us. Finding the right agent not only safeguards your purchase, but can lead to a lifelong friendship with somebody who is always willing and able to help you achieve your future goals.