Buying your first home is a notable life event, more than any purchases you made before. It can turn nerve-wracking for some when they realize it is different than renting an apartment or purchasing a car. The whole process can be complex and more than a little disorienting to first-time homebuyers. Mistakes can be made that have significant consequences if you aren’t prepared before purchasing your first home. Here are a few errors that are frequently made when buying a first home that should be avoided.
Know How You Will Pay for the House
Doing research before looking for a home will give you an edge. You shouldn’t scramble to get things in order after you found the house you wish to buy. You need to understand several pieces crucial to the home loan process. What should be understood are the number of loan programs available, the terms of various loan programs, what the down payment will be, the cost of private mortgage insurance and the process of securing a loan. One of the best ways to understand the requirements is to speak to a mortgage company and find out what is involved in procuring a home loan. They can tell you if your credit is good enough for a loan or what you can do if your credit isn’t good enough yet. The next step is to get pre-approved for a home loan so that you know what priced home you can purchase.
Know How Much You Need to Purchase a Home
This point seems like common sense, but many first-time homebuyers don’t factor in closing costs to the price of a house. Closing costs can significantly increase the total price of the home. Taxes and unforeseen fees can increase closing costs. A good way to avoid this problem is to add 2% to 4% to the list price of the house.
Don’t Attempt to Be Your Own Real Estate Agent
Unless you are a realtor, you don’t have the skill or experience to negotiate over a house. A qualified real estate agent who knows your needs can win negotiations for you. Be sure to find a real estate agent who is patient with you as a first-time buyer and who will guide you through the process.
Focus on Location
You may find a great house at a sensible price, but you ignored the reason it is such a bargain. The price of a house will remain constant or drop if it is in a high crime or run-down area. Its a fact that your home is an investment and purchasing a smaller home in a neighborhood filled with new construction and booming commerce is better than dying areas.
Inspect the Home First
This point may seem like another common-sense item, but inspecting a house you are potentially going to buy can prevent headaches in the future. Ensure you have a qualified home inspector who can recognize structural, electrical and infestation issues. If possible, complete the inspection before you make an offer to give you an edge.
Don’t Overspend
Buying a house that you struggle to pay for isn’t a very wise decision. Don’t take on the pressure of paying taxes, and upkeep costs along with a hefty mortgage. Purchase a house that will allow you to build your savings and invest without diminishing the quality of your lifestyle.
To Sum Up
With a little research and sensibility, you should be able to take part in the vaunted American dream of homeownership.
If you are a homebuyer and looking for a professional Florida realtor, then visit the website Megan Dowdy Realty. They offer home buying, selling, relocation, and real estate investment services. For further information, call on 407-509-9279.
