One of the biggest responsibilities that a person can take on is buying a house. This is something that you will likely be paying off for some time and it requires a lot of work and time to keep it in good condition while you're living there. So, before you go off to look at different homes for sale, you should make sure you know the things that might get you into trouble when you're ready to buy. Here are some of the biggest mistakes that first-time homebuyers have made again and again.
Not having all of their finances in order. This means more than just saving enough for your down payment. There are many buyers that make the mistake of not meeting with representatives mortgage companies to get pre-approved for their loan and don't know exactly what they can afford. You need to take the time to look over your long-term financial plan so that you can figure out what you're able to pay now in terms of a down payment and what you will be able to afford monthly for the next twenty to thirty years. Many sellers now expect that you have been pre-approved for your mortgage and will want to see proof of this before they consider your offer.
What are the benefits to getting mortgage preapproval? Read here!
Real estate agents can likely tell you countless stories about first-time buyers who did not do their research in terms of all of the extra expenses that come with buying a home. You might think that the only thing that you're going to have to pay is your down payment but there are lots of other costs that are bound to come up. You will have to pay for everything from the paperwork to put the title deed in your name to paying for an inspector to view the property before you make your final offer. Make sure you have money put aside to cover all of these things. Some people ask the sellers to pay closing costs but this should not be expected.
Most people's first home is not their dream home. So, when you're looking at real estate you should look with an open mind and try not to be too picky. It's unlikely that with the budget of a first-time buyer that you will be able to get all of the things on your wish list. Work with your agent to get as many things as possible and stay creative with your thinking of the possibilities of that home. If you've got your finances in order and you can choose a starter home, then you might be able to turn it into that dream property in a couple of years.
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