Don’t Press Your Luck – Avoid These 6 Mistakes When Buying Your First Home
It’s both exciting and a little scary to buy a home. That feeling of nervousness and not knowing what to expect is normal!
Everyone wants the “luck of the Irish” when looking for a home, but it comes down to much more than luck. Finding the right home means having a strategy from start to finish.
You can still wear green and keep that 4-leaf clover in your pocket if that makes you feel better. But, as the saying goes, don’t press your luck and make sure you steer clear of these mistakes below:
Mistake #1
Not knowing how much you can afford. Think monthly payments first and foremost, not just the purchase price. Next, get pre-approved by a lender BEFORE you start looking at homes. They may approve you for more than you are comfortable spending per month, so ask them to approve you for the monthly payments you want to spend, not the highest purchase price possible.
Make sure you understand the correlation between your purchase price, monthly payments and down payment. This is different for every home buyer, so make sure you know what your particular situation is and look for homes accordingly. You should also keep in mind the cost of utilities, repairs and maintenance.
Mistake #2
Not realizing that the wrong mortgage can cost thousands of dollars of needless interest. There are all sorts of loan options available these days and the “right” one is based on your particular financial situation and how long you plan to own your home. One loan definitely does not fit all, so do your homework and know the options and what is the right choice for you!
Mistake #3
Not discovering hidden defects before you buy a home. Never buy a home without a professional home inspection. But even before you reach that point, YOU need to know what the potential problems are in the home. From the get-go, make sure you and your agent exercise due diligence on things such as: How old is the heating and air conditioning system? When was the roof last replaced? How old is the water heater? Are there any obvious foundation or water issues? Etc, etc. Make sure you are taking the time to really take note of these things when touring the home.
Mistake #4
Not knowing how much your credit can affect your ability to buy a home. Lenders are tougher now and you need to have a decent credit score to get a low interest rate. About 3 – 6 months before you want to buy a home, start monitoring your credit online. You can go to websites such as www.myfico.com and pull your own credit for free. Do this very early on, before you start looking at homes, so you don’t have any surprises.
Most credit issues can be repaired, but it can take a few months. Make sure that if you aren’t monitoring your credit on a regular basis, you check it early on in the process.
Mistake #5
Not having a home buyer consultation with your agent prior to searching for homes. Don’t make this mistake! The spring market brings buyer competition and often times once you find the perfect home, things have to move quickly. Make sure you take the time to meet with your agent before you start searching for homes. This will allow you to truly understand the process, make sure you are prepared, ask any questions that you might have, and settle any worry or concerns that you might have about the process. If you don’t take the time to get this out of the way in the beginning, it could create delays once you have found the perfect home and possibly cause you to miss out on your dream home! Take the time to prepare and understand the process, you won’t regret it!
Mistake #6
Not asking questions if you’re confused or need clarification. There are no stupid questions when you are making the biggest purchase of your life. Don’t hesitate to ask any questions! I’m here to help you along the way and can educate you on the process from start to finish.
You’re In Luck
You’ve got to be one step ahead when it comes time to find a home in this market. This article shows you how to do just that so you’ll be prepared and avoid some unnecessary mistakes.
And, if you are thinking about buying a home this year, reach out to me and let me know. That way, we can make sure that we begin prepping WELL before you want to make a move.
Together, we’ll make a plan that works for you and your timeline, and then put it into action once you say GO! This article shows just some of the ways that I can help make buying a home in this crazy market not just doable, but actually enjoyable.
As always, reach out with any questions! I am here to be your real estate resource!
