5 Mistakes First Time Home Buyers Make

By
Real Estate Agent with Berkshire Hathaway HomeServices Knight & Gardner Realty


1. They begin looking at homes without first getting prequalified.  

      Getting prequalified with a lender is the very first step when a purchase is being contemplated.  It is necessary to find out if there are any credit blemishes and what is the dollar amount of borrowing power.  At this point it may be discovered that a larger down payment is needed or not as much down is required.  In any case the buyer is now ready to act when the right property is found.

 

2. They go online to get financing. 

      There are many local lenders and mortgage brokers who do a great job.  Find one you can sit down with face to face who will personally be accountable in the mortgage process rather than being passed around to faceless voices at the end of an 800 number.  These people live and work in your community and will take a great amount of pride in doing a good job for you.

 

3. They forego the home inspection. 

     $300 to $400 is a great investment compared to the cost of what some potential repairs could run. Often times when a defect is revealed the seller will agree to have a repair made.  It is better to find out before you own that property than after.

 

4. They don’t take advantage of how much a real estate agent can help.  

     Once price range is established they should begin taking advantage of what a Realtor can do for them.  The agent can alert them when property comes on the market or gets reduced. Not only this, but the agent can help with so much more, recommending neighborhoods, schools, home inspectors, insurance agents and helping with the negotiating process. You don’t need to figure this all out yourself.

 

5. They place a car ahead of a house. 

    Buyers get confused when then see the opportunity to wow their friends with a new car.  A car payment seriously impacts your borrowing power and should be secondary to owning a home. Most likely the car will start going down in value while the home value climbs.

 

Comments (1)

Yolanda Cordova-Gilbert
Richmond, TX

Joanne,

 Great blog and oh so true! Those that do not educate themselves think 350K can get them a mansion!

Sep 02, 2014 09:22 AM