Buying your first home can be very exciting. It can also be complicated and stressful, especially if you’re not sure what you’re doing. It helps to know what some of the pitfalls of buying a home are.
Here are a few common mistakes – and the worst – pitfalls you should avoid when buying your first home:
- Not getting pre-qualified for a mortgage – Even if you’ve created a budget, there’s no guarantee you’ll be approved for the amount you need. By getting pre-qualified for a mortgage, you’ll know exactly how much you can afford when house hunting.
- Not knowing your budget – If you don’t know what your budget is, how do you know what you can afford? A lot of people assume they’ll be able to afford a certain price without actually calculating current vs. future expenses. What can you afford on a month-to-month basis?
- Not understanding the “real” costs – A monthly mortgage isn’t the only cost associated with buying a home. As you create a budget, remember to factor-in:
- Basic maintenance and repair expenses
- Closing costs
- Interest rate
- Mortgage insurance
- Property taxes
- Not using a real estate agent – Don’t make the mistake of thinking you can find and buy a house yourself. A real estate agent can give you much more detailed advice about buying your first home.
Your real estate professional can help you identify houses that fit your needs and budget, ensure properties are fairly priced, assist with negotiations, and guide you through bidding and closing processes.
Be sure to avoid the worst pitfalls when buying your first home. Even if you’re not a first-time homebuyer, contact us at Randy Lindsay for additional homebuying advice.