Homeownership is one of the central tenets of a modern life. The majority of us first-time home buyers dream of a comfortable, familiar place to call our own, and buying a home is a rite of passage into adulthood, and into our own piece of the American Dream. But until you’ve been through the process at least once, there are plenty of mistakes to make.
So check out these 5 first-time home buyer mistakes to avoid:
1: Ask an agent to see houses before getting pre-approved
You’ll probably want to visit properties the minute you’ve decided that you want to buy. But don’t put the cart before the horse just yet. If you haven’t actually qualified for financing, you should hold off going to look at houses, since there’s no guarantee you qualify for a mortgage. Bottom line, getting pre-approved is critical for a first-time home buyer, so always start there.
2. Skip the ‘perfect home’ over small cosmetic features
Real estate can be tricky, and there are plenty of choices that first-time home buyers will decide based on cosmetics. However, if everything about a house is perfect except small things that can be changed, don’t pass on it. Everything can be remodeled, replaced or redone except for the house location.
3. Assuming your offer will be accepted
Making your offer is a big deal, and you might think that since you’re putting so much money on the line there’s no way someone could possibly turn it down. In reality, it’s a bit more complicated. In a competitive market, homeowners will get lots of offers, or potentially hold out for a higher price. But don’t get down, as negotiations are common, and there’s always that next house to see.
4. Forget to get an estimate of how much money you’ll need at closing
Most first-time home buyers will use online calculators and the like to figure out how much money they’ll need to bring to closing. What’s more important, is getting accurate estimates from your mortgage lender as there are many fees associated with a real estate transaction. Closing costs, state taxes and fees, attorney fees and more that you should be fully aware of before getting close to closing day.
5. Not hiring the right agent
A real estate transaction can be stressful, especially for first-time home buyers. That’s why picking the wrong agent can have devastating results. Even worse than hiring an agent who doesn’t care, is one who doesn’t know the answers. A great agent will have empathy, and make you confident about the decisions you make throughout the process.
At the end of the day, there are plenty of mistakes a first-time homebuyer can make when purchasing their first home. Hopefully you can avoid some of these common blunders for when that great day comes!