Buying a home for the first time is an exciting life milestone but can also be overwhelming. There are so many factors to consider and things to prepare for that it can be easy to make mistakes if you’re not careful. Here are five common mistakes that first-time home buyers should avoid to help make their first home-buying experience as smooth and stress-free as possible.
Not Getting Pre-Approved for a Loan First
Before you even start looking at homes, could you make sure you get pre-approved for a loan? This will give you a clear picture of how much money you will have to work with when house hunting and allow you to start looking confidently. Not getting pre-approved also limits your ability to negotiate on price if you find the perfect home early in your search. It’s best to get pre-approved before even considering any homes to know exactly what kind of budget you’re working with.
Not Looking at Enough Homes
On the flip side, don’t jump into buying a home too quickly, either! It’s easy to fall in love with the first house you see and forget about all the other options, but taking your time is important. Be sure to look at several different homes so that you can compare prices, features, and locations before making an offer on one particular house. In addition, look at houses both within and outside of your desired area as well; who knows, maybe something better is out there waiting for you!
Not Planning for the Closing Costs
Closing costs are fees that are due upon closing on a house—these include mortgage origination fees, title insurance fees, inspection costs, and other fees related to purchasing a home. A good rule of thumb is that total closing costs usually add up to somewhere between 2% - 5% of the purchase price, depending on where you live and what type of loan program you use. When budgeting for a new home purchase, make sure these additional costs are factored in, or else they could catch you off guard come the closing day!
Not Researching the Neighborhood Before Purchasing
Before signing any papers or putting down any deposits on a home, take some time to research the neighborhood it's located in! Are there good schools nearby? What kind of transportation options does the area provide? Is crime in this area higher than average? These are all critical questions that need answering before making such an expensive decision—you want to ensure that whatever neighborhood your new house is located in meets your needs (and wants). Also, be aware of any zoning restrictions or homeowner's association rules which may impact how much freedom homeowners have over their property once they move in (i.e., whether they can paint their front door purple or not).
Not Being Flexible Enough During Negotiations With Sellers
The real estate market is competitive, and if you want to get the best deal possible on your dream home then it’s important that you remain flexible during negotiations with sellers so that both parties come away satisfied with their purchase/sale agreement! Be prepared to compromise on certain things like price or repairs in order to get the best deal possible!
Buying your first home is an exciting adventure full of potential pitfalls if one isn't careful enough during the process. Now that we've gone through these five common mistakes first-time buyers tend to make, hopefully, it'll be easier for would-be homeowners like yourself out there to navigate this journey successfully! As long as one takes their time researching options carefully and gets pre-approved for financing before seriously considering any homes then everything should go smoothly from there—happy house hunting everybody!
