Buyer Tips: Mistakes First-Time Homebuyers Should Avoid
In the middle of all of the home buying excitement, it is easy to become sidetracked by beautiful back-splashes, granite and quartz counter tops, hardwood floors, and fenced-in backyards. Too many times, new home buyers start to think it’s okay to spend more on a home that doesn’t need any work over a cheaper home that needs a little paint or other minor upgrades. Therefore, I have some home buying mistakes first-time homebuyers should avoid.
Overspending - You need to know exactly how much you can afford before you even look at your first property. If you currently rent, the payment you can afford right now is a good indicator of what you’ll be able to afford in your new home. You should start by meeting with a lender to get pre-approved for an amount you can afford. And, keep in mind that it’s always better to lean towards a lower amount, rather than a higher amount. Just remember that you don’t have to use the entire amount you’re pre-approved for.
Closing Costs and More - When you buying a home, your mortgage payment is only the beginning of many costs. You will now have to pay closing costs, homeowners insurance, property taxes and maybe even homeowners association fees depending on where you buy your home. In the end, your $800 mortgage payment can easily turn into a $1,100 house payment.
Home Inspections - Home inspections can provide you with some protection, so don’t miss this important step even if the home seller has already had one done. The inspector will be able to find problems that you can’t and you want to know these problems before you sign any paperwork. Contingency clauses also offer a form of protection.
Overly Optimistic – Many first-time home buyers tend to be overly optimistic. They think nothing could possible go wrong. If a home has a few problems, they view them as easy fixes and are unrealistic when it comes to the cost and time it takes to fix up the home. You also don’t want to be a paranoid buyer. They may not believe the price is an accurate assessment of the house’s market value and will in-turn submit low-ball offers and then show frustration when they are rejected.
These first-time home buying tips are brought to you by: Shay Hargus – Austin Texas Realtor | (512) 775-1995, your Austin, TX real estate specialist. Serving Austin, TX and surrounding communities.
Featured Austin Area Home for Sale
For more information on this and other Austin homes for sale, please visit my Featured Austin Listings page.
Also posted at: http://allaboutaustintexas.com/buyer-tips-mistakes-first-time-homebuyers-should-avoid/