We cover this pretty thoroughly in our First Time Home Buyer Seminar. There are several mistakes Home Buyers may make when they decide to purchase their first home.
Probably the biggest mistake that Home Buyers make is tackling this complicated purchase without proper education or information. Buying a home is a lot more risky than buying a car or a boat. There are a lot more things that can go wrong or be wrong. Go out and take a class or two. Work only with real estate professionals who have been in the business awhile and know how to prevent the biggest mistakes. Education, information and a great Realtor consultant can save you tens of thousands of dollars on a home purchase.
A second mistake Home Buyers make is not knowing how much house they can afford. Before you even think of starting to shop for a home, you should meet with a mortgage consultant. Work with a reputable mortgage broker and someone who has been in the business at least 5 years and offers VA, FHA and conventional mortgages. Let them tell you if you are ready to buy and how much house you can afford. And then listen to them and don’t overbuy and make yourself “house poor”.
A third mistake is not using a home inspector to carefully review and check the house on your behalf. Once you have found the home you want to buy, pay the dollars necessary to hire the best homebuyer inspector in the business. One good inspector can save you thousands of dollars and hundreds of hours in repairs and replacement costs. You can use their report to negotiate seller paid replacements and repairs. Read all the documents you can get on that home including the Seller’s Disclosure and the required city inspections. After you have paid for the home, if you find something wrong with it, it will be MUCH HARDER to get it repaired at the seller’s cost.
A fourth mistake Home Buyers make is not realizing how credit mistakes can affect their ability to qualify for a mortgage. If your credit is shaky, especially in the current tight credit environment, you may not qualify for a home loan. Meet with a mortgage consultant to find out where you stand and take the steps necessary to improve your credit rating. You’ll have to do this sooner or later, if you really want to buy a home. DO IT SOONER.
Can you see a theme in these four mistakes? They all have to do with choosing ignorance over education. An educated buyer is a happy buyer, one who is walking into a home purchase with their eyes wide open. And a successful home buyer too!!
For more detailed information, come to our FREE NO OBLIGATION FIRST TIME HOMEBUYER class or wait for future blogs. “Simple answers to home ownership questions”.