8 Common Mistakes Made By First-time Home Buyers
Everyone makes mistakes, and the first-time home buyer is clear evidence of this truth. It’s easy to become overwhelmed with the purchase of a new home. It may seem like everything is going as planned, but there are things that first-time buyers cannot prepare for. A lot of this is because they just don’t know. The following list contains eight common mistakes made by first-time home buyers.
- Not doing any research: There’s nothing worse than a first-time home buyer that did not do any research. This is one of biggest expenses that most people will ever have. Home buyers cannot be so willing to hand over their monthly paychecks. Anyone that is looking for a home should be doing homework. Consumers need to know what kind of market they are in. The average person doesn’t want to buy gas when demand is up. Why would anyone want to buy a house when demand is up? It is relevant to know how the market is doing at buying time. Something so simple could drastically affect the overall price of the home.
- Rushing in before considering all options: It’s easy to get overly excited about buying a home. Some people may be in a rush to leave an apartment or get out of their mother’s house. Others may be looking for a new place to live after a divorce. It can be tempting to buy the first thing that fits your price range. This is always a bad idea. There’s no point in rushing into what might be a disaster waiting to happen. A proper inspection should be done. A thorough walk through should be also be considered before you ask for those keys. There are shows dedicated to homes that have bad plumbing, leaky ceilings, terrible foundations, and termite problems. An existing problem is sometimes the reason that the previous owner is willing to sell. There are even some new homes that have been built on bad soil. Careful consideration always needs to be taken before any final moves are made in these situations as well. It can be a nightmare to get inspections and consider all options when you are working on a tight time schedule. Sometimes it only seems natural to move in right away because there is no other option. People who are eager to buy should rethink their options. Potential home buyers should stay with a relative if they have to. They must do whatever it takes until they get time to really see things clearly.
- Waiting for a real estate agent to pick the perfect home: Home buyers should wait, but they do not have to wait forever. No buyer should assume that the real estate agent is going to work magic in finding the perfect home. These agents may have some idea, but the home buyer should still look at homes. No one can pick a home better than the potential buyer.
- Failure to obtain a credit report beforehand: It’s always good to obtain a credit report first. This allows people to know whether they will have high or low interest rates. This also plays a factor in how much the buyers can barrow. Sometimes an eager buyer may not even qualify for some of the homes that they are looking for. This can be depressing, but it’s better to know it in advance. It saves a lot of time and heartache on both sides of the table.
- Ruling out homes before seeing the inside: A credit report will really let potential buyers know what they can afford. Coincidentally, this also makes buyers aware of what they cannot afford. Some people may pass by a house and automatically rule it out. This is a bad idea, especially for people who have loans with limitations. It’s always good to take a look inside. These homes may have the perfect countertops, kitchen appliances, spacious living rooms, and beautiful bathrooms. The outside may be deceiving. Some people may find that they can live with the outside if everything that they want is inside the house.
- Paying the asking price: No one wants to lose out on a home, but a first-time buyer should never go down without a fight. A buyer in a seller’s market may not get very far, but they should always attempt to negotiate the price. You never know until you ask. The buyer may have an urgent need to sell. It may not be a big deal to knock a couple of thousand dollars off the asking price. The worst that the seller can say is no. It is at this point that the buyer can really ask themselves if the house is worth it. It’s a good exercise for both parties.
- Buying more house than you can afford: Some people may be surprised to know that they can get loans for so much. They may have good credit that allows them to actually get a loan for more than they can afford. People have to know their debt-to-income ratio before they buy. A person should never acquire a house that takes all of their income.
- Lack of specifications: Buying a home is not as easy as buying a shirt or tie. It takes a lot of planning. People should know where they want to live and how much they plan to pay. No one should go around clueless with no idea of what they want their monthly payments to be. They need to have a budget and the mortgage payments need to fit into it. Potential first-time buyers should prepare for the unexpected. They should consider all of their options.