5 Mistakes Made by First-Time Buyers and How To Avoid Them

Reblogger Gabe Sanders
Real Estate Agent with Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales 3090099

Some good advice for first-time buyers:

 

Original content by Amy Shair

young man with packing boxes

Thinking about buying your first home?

The prospect of a home-search can be exciting, but many first-time buyers get ahead of themselves. Before you start bookmarking your favorite listings and spending every weekend at open houses, pause and take note of these first-time buyer mistakes and how you can avoid them.

Mistake 1: Not Considering All Expenses

Many first-time buyers begin their house hunts because they feel as if they are ready to take on a mortgage payment. However, just because you can afford a mortgage doesn’t mean you can afford to own a home. Property insurance, taxes, homeowners association dues, higher water and electric bills, and maintenance costs are just some of the expenses that first-time buyers tend to overlook. It is also important to keep in mind that property taxes and insurance tend to go up every year. Even if you can afford the costs now, ask yourself if you’ll be able to cover the increased costs later on.

Mistake 2: House Hunting First, Loan Hunting Later

Whether you’re buying your first home or your fifth, the home buying process doesn’t begin with house hunting – it begins with mortgage prequalification. First-time buyers are often hesitant to get prequalified for fear that the lender may tell them that they don’t qualify, or that they may qualify for a smaller loan than expected. Even though house hunting is more fun than filling out loan paperwork, falling in love with a house and then applying for a loan is a backward approach that could potentially lead to heartbreak. In today’s competitive market, most sellers will require that proof of preapproval be submitted with your offer. Cover all your bases: get pre-approved and then start your house hunt.

Mistake 3: Not Seeking Help from a Professional

Everyone benefits from working with an experienced real estate professional, but it’s especially important for buyers navigating the market for the first time. Jumping headfirst into the process alone, without professional guidance, is not a good idea. Generally, first-time buyers should avoid dealing directly with a listing agent. A good buyer’s agent will have your best interests in mind and will give you truly independent advice. Your agent can also refer you to other professionals, such as mortgage brokers and lawyers, whose help you may need during the home buying process. Your buyer’s agent will be able to walk you through each step of the process, from starting out your search to closing on your dream home.

Mistake 4: Using Up Savings on the Down Payment

First-time buyers may think that scraping together all of their savings to make a 20 percent down payment is the best way to go, but it is a financial decision that could leave them in quite a predicament down the road. It is true that a 20 percent down payment means buyers don’t have to pay for mortgage insurance, but draining your savings to avoid that extra monthly payment is risky. Owning a home comes with a fair share of unknowns – emergencies such as a burst pipe or broken window can leave homeowners with unanticipated repair costs. If you’ve used up all of your savings on the initial down payment, that surprise busted water heater could leave you taking cold showers until you’ve saved up enough for a replacement. Consider making a smaller down payment and reserving some of your savings as a rainy day fund. Want more information on low or no down payment loan options? Visit my blog post on the subject here.

Mistake 5: Getting New Loans Before the Deal is Closed

So you’ve prequalified for a loan, found your dream home, and your offer has been accepted! Even if its tempting, don’t celebrate by financing another big purchase. Lenders pull credit reports before the closing to ensure that the borrower’s financial situation has not changed since the initial loan approval. Any new loans on your credit report are a red flag and can put your closing in jeopardy. So while now might seem like a great time to buy all new furniture for the house or a new car to park in the garage, save those bigger purchases for after closing.

Amy Shair real Estate Agent

 

Are you ready to take the plunge into the housing market?

I can guide you through every aspect of the home buying experience. If I can be of service as your buyer’s agent, please contact me.

Amy Shair, Re/Max United

Award Winning Agent Serving Durham, Cary, Raleigh & Chapel Hill for 20+ Years

"I will give it to you straight - NO FLUFF!"

www.AmyShair.com

(919) 818-5001

Amy Shair Durham Real Estate Facebook Amy Shair Durham Real Estate - Twitter Amy Shair Durham Real Estate LinkedIn Amy Shair Durham Real Estate YouTube Amy Shair Durham Real Estate on Google+

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
4,804,018
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Thank you very much, Gabe, for sharing this excellent reblog suggestion.

Apr 19, 2018 05:13 AM #1
Rainmaker
2,883,899
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Agents have an oblgation for education...most especially with first time buyers !

Apr 19, 2018 05:26 AM #2
Rainmaker
4,181,841
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for reblogging the post. I missed reading the original one 

Apr 19, 2018 06:33 AM #3
Rainmaker
2,589,267
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello Gabe Sanders great choice for a reblog - I had missed this post the first time around!

Apr 19, 2018 07:39 PM #4
Rainmaker
112,088
Amy Shair
Cary Apex Durham NC Referrals - RE/MAX United - Search Durham Homes - Duke University, NC
Award Winning Agent 20+ Years

Thanks so much for reblogging! I appreciate it.

Apr 20, 2018 10:06 AM #5
Rainmaker
1,543,440
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Great choice for a repost - finding the house and then the loan is clearly not a good idea! 

Apr 21, 2018 04:00 AM #6
Rainmaker
4,474,976
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thank you for stopping by and taking the time to read my re-blog.

May 05, 2018 06:17 AM #7
Rainmaker
4,474,976
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for your comments. It’s always good to hear from you.

May 05, 2018 06:18 AM #8
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
4,474,976

Gabe Sanders

Stuart Florida Real Estate
Ask me about Stuart FL real estate
*
*
*
*
Spam prevention

Additional Information