4 Mistakes To Avoid As A First-Time Home Buyer
Posted on: 20 June 2016
Buying your first home is a major accomplishment, but that doesn't mean that the process is always stress-free. Buying a house can be complicated and frustrating, especially if it is your first time doing a real estate transaction. To help ensure that buying your first house goes smoothly, avoid these common mistakes:
Not Getting Pre-Approved for a Mortgage
One of the first and most important steps in buying your first house is getting pre-approved for a mortgage. There is no reason to even begin looking at homes for sale if you have not secured funding and don't know what size loan you have been approved for. Try working with a mortgage broker or a lending institution that you have a relationship with to get the best interest rates and terms.
Don't confused being pre-qualified for a mortgage with being pre-approved-- being pre-qualified does not guarantee funding. When you're pre-approved, all of your financial information has gone through underwriting, and the lender has approved your loan.
Making a Large Purchase with Credit
While your hunting for your first home, it is never a good idea to make any type of large purchase on credit before the close of escrow. Taking out a loan for a new car or buying expensive new furniture with your credit card can change your debt-to-income ratio and also affect your credit score, which can cause problems with the mortgage loan that you have been pre-approved for. While you're going through the home-buying process, it is best to not make any changes to your financial situation or take on any new debt.
Not Taking Time to Select the Right Real Estate Agent
As a first-time home buyer, your real estate agent will be an incredibly valuable resource who will be available to answer questions at any time. But it is important that you select your real estate agent carefully, and feel very comfortable working with him or her. Ideally, you should select an agent who specializes in working with buyers and who has a lot of knowledge about the real estate market in the town or city where you want to buy. It is in your best interest to meet with several real estate agents before choosing one to work with.
Having Unrealistic Expectations
As a first-time home buyer, it is also important to know that the house of your dreams may be out of your budget. It may not be possible to find a house in your price range that has every single feature and amenity that you have ever wanted. It is a good idea to make a list of the things your first home must have, such as number of bedrooms or being in a certain school district, and then make another list of things that you would like to have so your real estate agent can find the best home to suit your needs. Contact a company like Gavigan Homes to learn more.
Share