Five First Time Home Buyer Mistakes

Five First Time Home Buyer Mistakes

Buying a home for the first time is an exciting process. At the same time, it is one that
is filled with many steps and details. Deciding which home and which mortgage are decisions that have lasting consequences. As you embark upon your home-buying excursion we suggest you keep in mind
these common mistakes of first time homebuyers.

#1 Purchasing a home too

fast. Perhaps it’s the excitement of buying your first home.
Or maybe it’s a fear that the “perfect” home will be purchased
by someone else. Whatever the reason, many first time homebuyers make
the mistake of rushing through the home purchasing process. They
tend to spend too little time searching for the right home. Often
first time homebuyers end up dissatisfied with the home they’ve purchased.
Keep your options open and continue to search for new homes that come
on the market.

#2 Buying too much home.

Another mistake made by first time homebuyers is purchasing a home that’s
right at, or even a little beyond, their limits. Many times this
leaves the new homeowner with little or no disposable income.
What good is a large home if you are unable to furnish it? None
at all! Purchasing a smaller home and leaving yourself some wiggle room
is much better than eating up your monthly income with a large mortgage
payment.

#3 Holding out for the dream

home. First time homebuyers might pass up several houses they
like because they believe that there is a better house out there for
them – one that is complete with everything they want and need.
In the meantime, houses that have most of the items they are looking
for are being taken off the market by other buyers. If a significant
period of time passes, market prices could go up and the first time
homebuyer ends up paying more for a home than expected. Even worse,
the buyer ends up so worn out from house shopping that he, or she, ends
up settling.

#4 Not getting pre-approved

for a mortgage. A pre-approval will do wonders for the first time
homebuyer’s shopping experience. Being pre-approved for a mortgage
lets you know what you can afford and what your payments will be.
Some first time homebuyers, not realizing the importance of this, forgo
pre-approval to get a head start on home shopping. What’s the
worst that could happen? You could find a home you absolutely
love and fail to obtain financing for it. Also, being pre-qualified
is NOT the same as being pre-approved. We have seen many families
not get their dream home because they were just pre-qualified.

#5 Not comparing mortgages.

Shopping around for a mortgage is just as important as shopping around
for the home. Many first time homebuyers do not realize that mortgages
from different lenders have different costs and different terms.
There are so many factors of that can vary from one lender to the next.
It only makes sense to shop around for the best deal.

Be informed of the steps thatyou must take and the decisions you must make as a first time homebuyer.Information and education are the best tools to equip you during the process of purchasing your first home.

Chris is a Realtor with EXIT Realty Associates

www.YourWashingtonRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.Com