Buying your first home can be a little scary. But with a little knowledge and preparation, you can keep the upper hand, and enjoy the process. Here are the top 5 mistakes to avoid as a first time buyer:
1. Not knowing how much you can afford.
A simple phone call to a knowledgeable lender can put that information at your fingertips. Start off the process by finding out how much of a mortgage you qualify for. Many buyers qualify for more that they need to spend. Knowing ahead of time makes you an educated buyer
2. Looking only for a foreclosure deal.
Many of the bank owned, or REO properties taken back in foreclosure are priced very aggressively. However, they are sold in as-is condition. Do you have the time and ability as a first time buyer to make needed repairs and fix up? Many other homes on the market are priced just as aggressively, and may be in move in condition.
3. Failing to find a good buyers agent.
A good buyers agent is a valuable resource for all buyers, especially, first time buyers. Rely on your buyers agent to give you names of reputable lenders, and inspectors. Your agent represents you during negotiations-someone in your corner.
4. Assuming your first offer will get accepted.
When you make an offer, it is just that. An offer. The seller may want to counter your offer, and that’s when negotiation begin. Knowing your budget (see #1) and sticking to it is important.
5. I’ll save money and do the inspection myself.
Hire a professional. They know what to look for, and what is critical to the home. This is a major investment, so it is worth spending a few bucks to have it checked out. Budget for some repairs and maintenance. Your inspector should be able to advise you on what to expect and when.
Owning a home can be exciting and rewarding. But buying that first home with a little knowledge and guidance will make the whole process easier and much more enjoyable.
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