Common Mistakes First-Time Home Buyers Should Avoid
Every homeowner could agree that buying your first home is an exciting moment in your life, but it could also be the most stressful. With lack of information and motivation, first-time home buyers often make some big mistakes.
Here are some of the most common slip-ups you should avoid when getting ready to buy for the first time!
Forgetting to weigh all their home-buying options
Many first-time home buyers think that buying a home is a concrete rite of passage that is inevitable in their lives. However, they neglect to see that buying a home isn’t the only option, and is definitely not the cheapest. Evaluate your situation and housing plan. If you are thinking of settling down for the long haul, then buying a house is a wise investment. Take advantage of the homeowner benefits, including home equity, property taxes, and actually owning a home and knowing your consistent costs for the future.
On the other hand, if you are almost certain that your next home will only be for a couple years, then renting might be the best option. Renting is not only cost-effective, but it supports the likelihood that you’ll be moving again within your five-year-plan. This is especially true for the younger generation that currently stays at their jobs for only a couple of years before moving onto the next step, and who knows where that next step will take them?
Passing on the home inspection
This is a huge mistake made home buyers looking to cut down on house hunting expenses. Though saving money is important, a home inspection might actually prove more so. If you skip the home inspection, you are at risk of buying a house that needs more money than you bargained for. Then you’re left spending more than the amount you would have paid for an inspector!
This professional walk-through is vital to your home-buying process for several reasons. An expert will be able to see potential problems unlike anyone else because they have a trained eye that knows exactly what to look for. Also, this gives you an opportunity to learn about your potential house and the best ways to maintain it. Inspectors can answer any questions that you may have about cracks, smells or other areas you might be worried about.
Not learning about the property
First-time home buyers often neglect to learn more about their potential property and its location, which is a big mistake. The house and the community it resides in may become your new home, so be sure to conduct the proper research.
This means visiting the property more than once. You can go to a showing in the afternoon on a weekday, but it won’t be a valid example of the environment as a whole. If you visit the property at different times throughout a week, you can see if the traffic gets congested near your house during rush hour as well as experience your potential neighbors when they get home from work.
While you’re at it, take note of the community around you. Consider your lifestyle and how this new place could affect it. Are there schools nearby? This could be an advantage if you have children, but could be a problem if you don’t want to be kept up late by those Friday night football games.
Relying too much on the Internet
As of recently, home buyers are turning to online sources to learn about their home values and loan information. The Internet is a great resource for home buyers to perform their own research, but that’s all it should be used for – research. You can’t put too much faith on what you find online because it’s not always reliable. That’s why interviewing and working with a lender in-person, will provide the clarity you need about your mortgage. They will be able to explain misunderstandings with fees, ownership costs, and other terms you may have questions about.
It is also apparent that home-buyers are getting their hopes up due to online home values. Some sites can give buyers an inaccurate home value which isn’t fair to the client. Think about taking a drive with an agent around the neighborhoods you’re looking into so they can give you a better explanation for a home’s value.
Failing to plan their finances
Many first-time home buyers are very conscious about how much money they’re willing to spend, however there are a couple of ways to get tripped up in the process.
Some home buyers purchase properties beyond their budget even when they have a budget! This could be because they didn’t realize all of the costs that came with buying a home, including property taxes, closing costs, and association dues. It is the responsibility of the buyer to understand the costs and ensure they can pay them before closing the deal.
Another mistake frequently made by home buyers is not getting pre-approved for a mortgage. This solution could save you from spending beyond your means and keep you looking at houses in your price range. U.S. News & World Report says a pre-approved mortgage will prove beneficial when you find the home of your dreams and need to place an offer immediately.
A solution that may prove beneficial in avoiding these mistakes could be working with a trusted real estate agent. With more than 20 years of experience, John Lee is the expert you want on the job! Check out his featured listings or call him at 843-575-2820 today to find your new home here in South Carolina.