First Time Home Buyers in Goose Creek Charleston SC area can save thousands of dollars when they buy there first home if the avoid these mistakes. By avoiding these mistakes, you can purchase a home with in your budget at the best possible price and terms. In order to accomplish this goal, it is important to find an agent and loan officer who understands your goals and does not put you in the wrong home, at the wrong price and terms. It is always better to be conservative in purchase than to buy a home that may have a lower price, but requires a lot of work, or it is at a higher price which is the upper end of your home buying budget.
10 Mistakes First-Time Home Buyers Make
Smart Money - Deal of the Day by Lisa Scherzer - April 2, 2009 - The declining home values that are plaguing homeowners are just one of the factors creating an opportunity for prospective home buyers.
Standard & Poor's latest Case-Shiller index, which tracks home prices across 20 major U.S. cities, reported that values dropped 19% in January from a year earlier.
Those depressed values, combined with near-record-low mortgage rates and government incentives (an $8,000 first-time home buyers' tax credit included in the stimulus bill), are luring more first-time home buyers into the market. Indeed, a recent Century 21 Real Estate survey found that more than three-quarters (78%) of potential first-time home buyers say now is a good time to buy.
If you agree, be aware that buying a home comes with plenty of potential missteps. Here are 10 all-too-common mistakes first-timers make.
1. Not knowing how much house you can afford.
Many novice home buyers spend a lot of time researching homes - comparing kitchen layouts and backyard square footage - but very little time researching their financing options. One of the first things buyers should do is talk to a qualified lender and get preapproved for a mortgage, says Claire Clark, senior vice president of business development at Prudential California Realty. Without first figuring out how much house you can afford, you risk falling in love with one you can't.
2. Assuming foreclosures are great deals.
Just because the previous owner owed $450,000 on a house before the bank took it over doesn't mean it's worth that much now. Values have slipped significantly, says Jay Michael, partner at Estate Property Group, a Chicago real estate brokerage, so you may not be getting the bargain you think with a foreclosure. Also, most homes owned by lenders or banks have been sitting vacant for months and may have been vandalized. That could require extensive renovation or repair. Weigh the costs of fixing up the property against the savings you'll likely reap by buying a lower-priced foreclosed home.
3. Letting your true feelings show.
No matter how much you've fallen in love with a house, don't let the seller's agent in on it. Otherwise, they will gain the upper hand in negotiations.
4. Failing to find a good buyer's agent.
Landing a mortgage is tough these days. So buyers should rely heavily on knowledgeable agents to help them get their finances in order, says Michael. After all, buyer's agents have a fiduciary responsibility to the buyer exclusively -- and should be looking out for their best interests. Start your search at the National Association of Exclusive Buyer Agents, a nonprofit representing buyers. Or consider using an agent recommended by a relative or friend. Interview each candidate about their experience, if they've worked with first-time buyers before and what kind of service you'll get from them.
To read the rest of the article, http://www.smartmoney.com/Personal-Finance/Real-Estate/10-Mistakes-First-Time-Home-buyers-Make/
For more information on Buying a Home in Hanahan & Goose Creek, SC and Surrounding Areas contact Matt Naumann, your local local buying expert on Foreclosures, REOs, and Bank Owned Properties.
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