How to Avoid These Common
First Time Home Buyer Mistakes
Common First Time Buyer Mistakes
Below, we’ll go over some of the most common mistakes first time home buyers make. Talk to your real estate agent to see if there are any others you should look out for!
Not Getting Preapproved
A lot of home buyers start shopping for a house before they shop for a lender or a mortgage. You should always make sure that you get preapproved before you even start looking for a house. This way, you will know how much you can afford to spend. It might even give you a reality check about your debt to income ratio and what you can realistically afford. It’s heartbreaking to fall in love with your dream home and realize it’s out of reach, so get preapproved to avoid sorrows.
Aiming Too High and Saving Too Little
A lot of first time home buyers aren’t aware of how much a real estate transaction can cost. So many first time buyers think that if they have saved enough for a down payment, that they are in the clear. However, you need to make sure you know approximately how much closing costs will be so you can save these additional funds. Also, we advise you not to spend at the maximum range of your budget and wipe out all of your savings. Even if it means you have to wait a little longer or get a little less house, getting underwater in a property can be a major financial problem. You don’t want to default on a house you just got because your overspent. Not Reading Closely
Real estate contracts are not easy work! It’s not like the terms and conditions of an app, where you can scroll through and ignore it. Make sure that you read your contract carefully and ask your real estate agent to explain anything that might be confusing or unclear. It’s always better to ask the question than to regret not asking it. Underestimating Repair Costs Finally, many buyers underestimate the cost of repairs and renovations. It might seem like an Instagram-worthy dream to completely gut your house, but it’s also very expensive. Think twice before opting for a fixer for your first home.
A lot of first time home buyers aren’t aware of how much a real estate transaction can cost. So many first time buyers think that if they have saved enough for a down payment, that they are in the clear. However, you need to make sure you know approximately how much closing costs will be so you can save these additional funds. Also, we advise you not to spend at the maximum range of your budget and wipe out all of your savings. Even if it means you have to wait a little longer or get a little less house, getting underwater in a property can be a major financial problem. You don’t want to default on a house you just got because your overspent. Not Reading Closely
Real estate contracts are not easy work! It’s not like the terms and conditions of an app, where you can scroll through and ignore it. Make sure that you read your contract carefully and ask your real estate agent to explain anything that might be confusing or unclear. It’s always better to ask the question than to regret not asking it. Underestimating Repair Costs Finally, many buyers underestimate the cost of repairs and renovations. It might seem like an Instagram-worthy dream to completely gut your house, but it’s also very expensive. Think twice before opting for a fixer for your first home.
Conclusion
Buying your first home is an exciting experience, but you should make sure you watch out for these common pitfalls when purchasing a home. Make sure you have enough money saved to cover your down payment and closing costs, don’t get in over your head on a house that’s too expensive or requires too many repairs, get preapproved, and ask questions!
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