10 Worst First-Time Homebuyer Mistakes

by Administrator 11. September 2014 09:11

Searching for a home can be really exciting but at the same time a little daunting. You might have taken time and considered many options but there are still a number of mistakes that first time buyers usually make. Given here are some of those common mistakes and tips on how you can avoid them.

  1. Not analyzing your budget: Homebuyers must make a detailed list of all their monthly expenditures, such as groceries, loan payments, credit card payments, household bills, insurance premiums, vehicle costs, groceries, retirement savings and the like.  Take out all these from your total income and then you will get an estimate on how much you can spend each month on your new home.
  2. Skipping mortgage qualification: You must ensure that you have been approved for a loan before initiating the search for a home as otherwise you will be wasting your time. The house that you are looking for should fit into the loan amount approved by the bank.
  3. Not considering add-on expenses: Apart from the monthly loan payments, you will have many other expenses once you are a homeowner. You will have to pay property tax, make any repairs required in the house and prevent it from natural disasters.
  4. Do not be too choosy: As first time homebuyers, you may have to compromise on certain things due to the shortage of funds. Being too choosy can ultimately end up meaning that you will be living in a rental home for a longer time.
  5. Lacking vision: If the home is perfect in terms of size and location then you should overlook minor imperfections.
  6. Being swept away: Minor cosmetic fixes and repairs are a seller’s tricks to ask for a high price for his property. You should be cautious and not get swayed away with these tactics and make a wise decision.
  7. Compromising on important things: Do not make compromises on things that can be a trouble for you in the long run.
  8. Not inspecting properly: Although the seller presents the house in its best form, still you must carry out a thorough inspection looking for any loopholes. 
  9. Not choosing the correct neighborhood: This may not seem to be important initially, but owning a house that has unfavorable neighbors can really have unpleasant circumstances subsequently.
  10. Not hiring an agent: You must take the help of a professional real estate agent while buying a home as he will have a proper knowledge about the present market and will be able to guide you properly.

For all your needs and concerns related to buying, selling and renting, you can contact us at Morris Real Estate at (254) 634-8852.

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