Are you getting ready to buy your first home? You might be feeling excited, apprehensive, nervous, or a combination of all three—after all, there are so many factors to consider! Before you get overwhelmed, check out our list of the top mistakes that first-time buyers make…and how to avoid them.
Searching Before You Get Pre-Approved
Buying a home is an exciting decision, and you might be eager to start scheduling showings as soon as you can. However, agents and sellers probably won’t take you seriously if you aren’t pre-approved. In a nutshell, getting pre-approved means that your lender has formally cleared you for a mortgage. Getting pre-approved also allows you to set a budget because you’ll know just how much you can spend!
Talking to Only One Lender
Did you know that most buyers only talk to one lender as they shop for a mortgage? Believe it or not, there are hundreds of different lenders to choose from, and they all offer unique terms and rates to suit your needs. You can also explore specialty loans, such as ones offered by the VA, USDA, and FHA.
Not Watching Your Credit
Just because you’re pre-approved for a mortgage doesn’t mean you’re out of the woods quite yet. As you shop for a home, be sure to watch your credit score and work towards paying off your debt. You’ll also want to stay at your current job and avoid making any big purchases.
Not Using an Agent
Technology might be integral to the home-buying process, but nothing can replace the power of a real estate agent. Not using a real estate pro can seriously make or break your entire search, so be sure to find the right agent who has experience in your preferred areas.
Refusing to Compromise
Unless you have an unlimited budget, you probably won’t get everything you want when you’re buying your first home. Before you start looking at listings, make a list of wants, needs, and would-be-nices—and be ready to compromise if you can’t find the perfect place.
Picture this: you’ve found the exact home that you’re looking for, but it’s over an hour away from your job! Many first-time buyers don’t consider location as much as they probably should when they’re looking at properties. You can change a lot of things about a home…but its location isn’t one of them.
Forgetting About Moving & Closing Costs
When you’re buying a home, there are plenty of additional costs you’ll have to factor into your budget. Attorney fees, agent commissions, moving companies, and home inspections are just a few of the charges that you can expect to pay. If you have any questions, just ask an agent to see how much extra cash you should set aside.
Ready to Make Your Move?
Now that you know about the top mistakes that first-time buyers make, you might feel ready to take your next steps. If you’re looking for more information (or if you want to start touring homes!), just reach out to Wilco Realtors. Be sure to check out our buying resources for more details, too!