If you are ready to buy a home, you will be eager to get out house hunting straight away. Before you do though, there are a few things to consider. The folk at EXIT Real Estate Consultants say that many first-time homebuyers make the same mistakes when searching for their dream home.
Looking at What they Cannot Afford
There really is no point in searching for homes until you know what you can afford as you are likely to end up feeling disappointed. It is much better to apply for preapproval before you begin your house search. That way you will have a clear idea of what your budget is, and you will not end up falling in love with a home that you cannot afford. It can be hard to find a home you love within your price range if you feel as though you have already lost the home of your dreams.
Skipping Preapproval
Following on from the mistake above, you might have an idea of what you can afford and what you would be comfortable paying, but a lender might not agree with you. Even if you have been paying more for rent than you would on a mortgage, you may not find a lender willing to provide you with the mortgage you need for a particular home. It is always best to have your preapproval in place before looking for a home, and never put an offer in until you know what a lender is willing to give you.
Choosing the First House they View
It is possible to find your dream home immediately, and some people will fall in love with the first home the see. But this does not mean that they should make an offer there and then without seeing other properties. There are also other good reasons to shop around when looking for a house. For example, some people will feel pressured into picking the first house they can afford because they are keen to get on the property ladder. This might mean that they end up with a home that does not suit their current circumstances or that will not be suitable in the future should they wish to grow their family. Shopping around and taking time when buying a home is the best way to find the perfect home for you and your family.
Not Using a Real Estate Agent
Some first-time house buyers will forego using an agent when looking for a house, which puts them at a disadvantage when dealing with a seller’s agent. Although agents are required to act in both the seller and the buyer’s interests, not having an agent could mean you are on the back foot in terms of negotiations. An experienced agent will know how to negotiate the best terms for their client and will work with the seller’s agent to find a deal that works for everyone.
Waiving a Home Inspection
Some lenders insist on a home inspection before they will approve a mortgage, but those making a cash purchase might decide to forego this inspection if they are hoping to win a bidding war. This is a big mistake as it is during these inspections that potential future problems can be identified. A home inspection can help you to make a more informed decision when buying a home.
To conclude, while buying a home can be an exciting time, the rush to get on the property ladder can often leave some first-time buyers making costly mistakes. It is best to take your time when buying your first home so that you can be sure of finding the perfect house.
