So, you’re ready to buy your first home? First, congratulations! Buying your first home is a huge accomplishment.
Second, buckle up! Buying your first home will be a whirlwind of emotions. The good news is when you come out the other end, you get to rest in a home of your own.
There are some common mistakes that first-time home buyers make that can be avoided, especially if you work with a realtor to help guide you through the process.
Looking for a Home Before Being Pre-Approved
Most first-time buyers fall into the trap of seeing houses before getting pre-approved by a lender.
Pre-approval means you have started the loan process, and the loan officer has given you the virtual thumbs up to look at homes at a certain price point.
In competitive markets with low inventory, being pre-approved is a must for a seller to take your offer seriously. Plus, a lender will tell you how much home you can afford, so you won’t get your heart set on a home outside your budget.
Luckily, being a first-time buyer, your loan won’t be contingent on the sale of your current home, which sellers will love to see.
Having A Bad Case of FOMO (Fear Of Missing Out)
Searching for a potential new home is fun, and it’s easy to fall in love with a home quickly. But getting emotionally attached to a home can lead to bad financial decisions.
Overpaying for a home is not always a bad thing. From an investment standpoint, if you overpay $5,000 for a home today, in the long run that home value could increase as the market changes, making you a nice profit.
Where first timers get in trouble is jumping at a home -- especially the first one you look at -- without considering how it will impact your life and budget.
There will always be more homes that come on the market that you will love just as much. That said, if you have your ducks in a row and love a house, go for it! Just make sure you listen to your realtor’s advice.
Speaking of realtors…
Not Working with a Realtor
Many first time homebuyers are looking to save money and think that by not hiring an agent, they'll save.
But having an agent on your side can make a huge difference in negotiating and will help ensure all the legalities are covered in a way that protects you - the buyer.
If you are ready to start your home buying journey or have questions, give our office a call at (256) 692-9795.