Buying your first home can be a very exciting, nerve wrecking, and rewarding process without the right direction. So much rests on this transaction and if not done right it can cost you thousands of dollars and lots of stress. Being a first time home-buyer specialist, I make it my priority for every client to know what the process entails and how to make it easier. Here are the 4 most common mistakes First Time Home Buyers make.
Not Listening to or Seeking Professional
As soon as you mention your buying a home, all your friends and family will give you their horror stories. While I wont say don’t listen, I will say that’s not exactly your fate. Being in the business long enough, I will say every deal has a bump and no two are the same. As soon as you think to begin the process, your first call should be to a trusted area Realtor (Me, lol). Reason being, we know the best ways and programs you can utilize to get the most out of your purchase. We can also send you to the best loan officers in the area and likely save you a lot of money and frustration.
Not Learning the Process
If you fail to plan, plan to fail. Knowing what you’re getting into step by step, will save you lots of time as well. What we call a buyer consultation is where we sit and go over the process and make sure you know what is going to happen. Again, no two deals are the same and there will always be issues that are found. This is where the experience of your agent will come in. The more homes and pitfalls they’ve been in, it will better put them in position to direct you to a place where that doesn’t happen. Knowing what type of home, area, condition, and price will be something that your agent and loan officer will discuss and figure out. The more you know, the better and easier for everybody.
Not Comparing Mortgage Quotes/Products
Many first timers want to save as much money as possible, which is understandably smart. 100% financing is the popular option many choose to go but it isn’t always the best. If you’re looking to buy a multifamily home, then that’s not your best option, and FHA loan would be. This ties into knowing the process and trusting a professional to guide you into the right place. The cheapest route isn’t always the best route.
Looking At Homes You Cant Afford
This is often the case when your loan officer and agent don’t go over what your pre-approved amount will be in a monthly payment. We all want the most for the least, but paying for it isn’t something we are in a rush to do. If the loan officer gave you a number to stay around, don’t look at that number, try searching in a lower range first. Sometimes what you’re looking for can be found without spending what you thought.
I hope that you read and avoid these pitfalls as they can prove to be costly and will raise your blood pressure. As always, if you have a question please don’t hesitate to reach out.