Top Mistakes made by First-Time Home Buyers

Buying a home for the first time is a huge milestone.  It is exciting but it can also be a little nerve wracking.  Let’s look at some of the top mistakes made by first-time home buyers make and what you should do instead.

Don’t Skip Important Steps

While you may be eager to have a place of your own, be sure to take your time. Before you even begin browsing online, you’ll want to first save for the different homebuying costs, such as a down payment. Give yourself at least a year to do so.  Focus on improving your credit and paying down debts to boost your chances of getting better terms for your mortgage.

When you’re ready to begin your home search reach out to a real estate agent.  An agent can connect you with some great local mortgage lenders.  Those lenders can walk you through the loan process and provide information on additional expenses.  One of the most common mistakes first-time homebuyers make is getting too focused on the down payment and monthly mortgage payments. There are many other costs involved in the process you don’t want to be caught unaware of. For instance, closing costs, including appraisal fees, inspection fees, and attorney fees, are typically 3 to 6 percent of the loan amount.

Lenders can also provide you with a preapproval letter so that you know how much you can realistically afford. This will give your agent a clear idea of what homes to show you within your budget. Preapproval letters are often requested to accompany any offer to a seller to demonstrate your ability to get the loan.

Not budgeting for ongoing costs

As a new homeowner, you’ll need to pay for maintenance, repairs, property taxes, and utilities. To avoid putting yourself in a financial bind, make sure to factor in these extra costs when determining how long and how much you should save before beginning the homebuying process and how to structure your future budget.

Too often, buyers fall so in love with a house that they fail to look at anything else, such as the neighborhood, school district, or local amenities. When evaluating a potential home, look into the quality of the neighborhood by visiting at different times of the day.   Talk to potential neighbors to get an idea of what it’s like to live in the area. If you have children or plan to have them in the future, check which schools the neighborhood is zoned for and how well they’re rated.

In addition, consider the proximity to essential locations like grocery stores, hospitals, as well as local recreational opportunities like parks and restaurants. If you work on-site somewhere, calculate your potential commute times by driving the route at various points throughout the day. By weighing these components in addition to the house itself, you can ensure long-term satisfaction with your new home and the area it’s located.

Skipping a home inspection

Though you may be tempted to forgo the home inspection to save money or speed up the buying process, this mistake could cost you in the long run. A professional home inspection can protect you as a buyer by revealing issues with the property that might not be visible during a normal walkthrough. These can range from minor repairs (e.g., loose doors or missing handles) to major structural problems (e.g., a cracked foundation) that could cost thousands of dollars to fix.  I always recommend investing in a home inspection, even on new construction.  You can make the contract contingent on inspections and ask for the seller to make needed repairs.

Letting emotions drive your decision

Buying a home can be an emotional process. It’s easy to get overly attached to a property and make a hasty decision. Letting your emotions drive your purchase can lead to regret later. Instead, do your best to remain objective and consider all the practical aspects of the home.  Consider its condition, location, and price. This is a huge financial commitment after all. This is where you agent can be your unbiased opinion.  A good realtor can help you take a moment to compare different properties and weigh the pros and cons of each.

As you’re preparing to purchase your first home take your time.  Be sure to work with a trusted real estate agent throughout the process. This can help ensure that you don’t make the Top Mistakes made by First-Time Home Buyers.