7 First Time Homebuyer Mistakes to Avoid
If you’re a first-time homebuyer buying a house can be overwhelming. Good news is that you have an agent by your side to guide you through the process. Review and make note of these items to avoid making unneeded mistakes!
1. Getting too emotionally attached
You’re about to make the biggest purchase of your life. Relax. Find several homes you love so that you’re not too emotionally invested in one.
2. Finding the home yourself
It’s easy to browse Trulia or Zillow to find homes for sale in your desired location but make sure to keep your agent in the loop. A good real estate agent can give you the inside scoop on what the home looks like, where it’s situated, the Walk Score and the price per square foot in the neighborhood.
3. Not saving enough money
Having enough money for a down payment is only the beginning. Transitioning from a renter or your parents’ home to your own home has hidden costs that may be overlooked, such as closing costs and property taxes. You should also have at least three to six months of expenses saved up in an emergency fund for unexpected items that may arise.
4. Not getting preapproved for a loan
If you want your offer to be seriously considered by the seller, you are in a much better position if you obtain preapproval. By providing income and assets in the form of a preapproval letter from a lender, you may have the edge over other bidders who may not have taken that extra step.
5. Not checking the price of homeowners’ insurance
Make sure you can afford to insure the home you want to buy. Some factors may increase your insurance, so be sure to talk to a knowledgeable insurance agent before deciding on a home.
6. Not checking your credit score
Unknown errors, such as showing you have late payments when you don’t, could negatively affect your credit score. Be sure to check your credit at least three months prior to house hunting. If there’s an error, contact the credit bureau to get it resolved.
7. Not getting a home inspection
All homes need inspections, even brand-new ones. Don’t skip this step because you’re emotionally attached and want the home no matter what it takes. If the home has issues, you can ask the seller to fix them or lower the asking price. The reality is that the buyers who ask for more often get more. So don’t be afraid to speak up and get outstanding issues fixed before you sign your settlement papers.