When the time is right, buying a home is one of the best decisions you can make. However, mistakes can be made. Here are six common mistakes first-time home buyers make that should be avoided.
Not having the right real estate agent
When you start looking for your first home, one of the main priorities should be to find a realtor you are comfortable working with. The agent should have some experience and be knowledgeable enough to answer questions about buying and selling homes. Never underestimate the importance of having a good agent. Buying a house is a very big investment. So, you want to have a real pro to support you!
Do not consider renting
Home ownership has long been the ultimate dream. However, it is a dream that can turn against you if you are not ready. So, weigh your options. If the cost of owning is beyond your budget, it may be best to keep renting until you're ready. If you are considering becoming a homeowner, you must be aware that your expenses are not only related to the purchase, taxes, and insurance, but also to the daily expenses related to owning a house. Buyers should always have an emergency fund in place for the unexpected or for more financially difficult times. Buying a home is one of the most important financial decisions you will make in your life.
Not taking DTI seriously
The DTI stands for debt ratio. This is one of the very first things your lender will consider when assessing your mortgage borrowing capacity. If you're planning to buy a house in the near future, don't take on new debt, especially one that's beyond your means. Many buyers make the mistake of buying a new car the moment they find their dream home. The debt ratio may then be too high to take out a mortgage.
Not working with lenders in person
Starting your search for mortgage information online is great, but it shouldn't be your only step when shopping for mortgages. You must meet the lender in person to obtain a full range of mortgage options, as well as any local homeownership programs that may exist. Do your homework to choose a lender to work with. Not all lenders have the same rates or even the same loan programs. Ask around you, your family, your friends, and your real estate agent if they recommend someone for your financing.
Not having your house inspected
Finding the "perfect" home can be very exciting. But don't get too carried away. Often, first-time home buyers try to cut costs by skipping the home inspection step. A real estate agent can recommend many qualified home inspectors who will look for defects in the property. Failing to have the home inspected by a professional could cost you thousands of dollars in repairing damage you didn't spot when you bought it. Unless you are 100% certain that there are no major defects in the property, skipping a home inspection is a big mistake!
Do not leave negative emotions at the door
The current market trend leads sellers to receive several offers on their homes. Sellers don't always choose the highest bid. Often, they choose the buyer who seems to have the biggest crush on the property. Buyers who complain, add unreasonable terms to an offer, and have a generally negative attitude tend to be ignored.
If you are thinking of buying your first home, do not hesitate to contact a real estate agent who will be able to guide you through this important stage in your life.