Purchasing a home is one of the biggest investments you will make in your lifetime. It’s important you do your research beforehand like checking out our list below.
- Not knowing how much house you can afford.
First thing a potential homebuyer should conduct is searching for financing options and get pre-approval. Once you know what your limits are for spending you can then start your search for a home.
- Assuming foreclosures are great deals.
Many homes that have been foreclosed are owned by the bank and are of less value then what the original homeowner purchased the house for. In many instances, the house may have been sitting vacant for quite some time and may have been vandalized.
- Letting your true feelings show.
Don’t let the seller’s agent know how much you really love the property, this gives them the upper hand.
- Failing to find a good agent.
Make sure you interview with a few agents before deciding which one is the perfect match for you. Communications between yourself and the agent is vital during the first-time homebuyer process.
- Underestimating the costs of owning a home.
Remember to anticipate additional costs for repair, maintenance and utilities for your potential new home. Keep some assets aside to reduce your stress levels.
- Failing to budget for property taxes.
Do your due diligence with research on property taxes within the area and factor this into your home buying budget, even talk with future neighbors to get an idea of how much you will be paying.
- Assuming your first offer will be accepted.
There is not surprise that there may be a lot of competition on purchasing the first home you fall in love with. Key is to not get discouraged if your first or second offers are rejected.
- Skipping the inspection.
Make sure you hire a professional inspector before signing anything. The individual should be an independent inspector not associated with your real-estate agent.
- Doing too much too fast.
Don’t over exceed your credit limits to make changes right away to your new home. Have patience and make changes gradually over time.
- Failing to include a contingency clause in the contract.
A mortgage financing contingency clause protects you if you lost your job and the loan falls through. Ensuring that you get your money back.
Source: MSN real Estate – Top 10 mistakes of first-time buyers