You’ve discovered your’re a first time home buyer! Congratulations! Many people who are purchasing their first home are quite excited at the prospect of doing so. They are eager to get started with the paperwork and to move into their new home. Some caution needs to be considered, however, because this is also the time when many mistakes are made by first-time homebuyers. It is important to make the right decisions along the way so that you have the best possible outcome for your efforts.
The following are 10 of the worst first time home buyer mistakes:
1. Not Knowing Trends
You may know your financial status but do you know if it is a good time to buy? Making the right decision can make the difference between loving your house and hating it.
2. No Budget
One of the biggest mistakes that is often made is not truly understanding what you will spend to own you home. It goes beyond the mortgage payments and taxes, and you need to figure in all expenses to know what you can fully afford.
3. Not Pre-qualifying
One of the most important papers to have in your hand are not the loan papers, it is the pre-qualification letter. When you are looking for a home, this letter is like showing a wad of cash to the seller. Make sure you have one and take care of it.
4. No Credit Check
It is important to know your credit score before sitting down to fill out your loan papers. Check your credit, look for any errors and see what you can do to build your numbers.
5. Not Being Informed
It is good to have professionals by your side, such as a real estate agent, but don’t just take what they say and run with it. Always back up what is said with your own research or, at the very least, a second opinion.
6. Not Knowing About Fees
There are always going to be hidden costs, and those associated with buying a home can make or break the deal. Included in these costs are closing costs, credit report fees and appraisal fees.
7. Falling in Love
You may love the idea of owning your own home but don’t be too quick to get your hopes up. If you fall in love with a home before you actually own it, you will be looking at it through rose-colored glasses.
8. Not Looking at Resale Values
You might think you are going to be in your home for many years, but unforeseen circumstances may make it impossible. Be sure to look into resale values. Always remember, your home is not only a home, it is an investment. Keep in mind that you can sometimes increase the resale value by making improvements. Some of the best to consider include redoing the kitchen, bath and storage areas.
9. Verbal Agreements
When you put in a bid or anytime an agreement is reached, be sure to get it in writing. A verbal agreement is easily broken and you will have no legal ground to stand on.
10. Not Having The Home Inspected
Always, always, always have the home inspected before you sign on the dotted line. Depending on the type of inspection, you can really learn a lot about the structure and any possible repairs that may be coming your way.
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