So, you’re ready to buy your first home? First, congratulations! Buying your first home is a huge accomplishment.
Second, buckle up! Buying your first home will be a whirlwind of emotions. The good news is when you come out the other end, you get to rest in a home of your own.
There are some common mistakes that first time home buyers make that can be avoided, especially if you work with a realtor to help guide you through the process.
Looking for a Home Before Being Pre-Approved On A Mortgage
Most first time buyers fall into the trap of seeing houses before being pre-approved by a lender. Pre-approval means you have started the loan process, and the loan officer has given you the virtual thumbs up to look at homes at a certain price point.
In competitive markets with low inventory, being pre-approved is a must for a seller to take your offer seriously. Plus, a lender will tell you how much home you can afford, so you won’t get your heart set on a home that you can’t afford.
Luckily, being a first time buyer, your loan won’t be contingent on the sale of your current home, which sellers will love to see.
Having A Bad Case Of FOMO (Fear Of Missing Out)
Searching for a potential new home is fun, and it’s easy to fall in love with a home quickly. But getting emotionally attached to a home can lead to bad financial decisions.
Overpaying for a home is not always a bad thing. From an investment standpoint, if you overpay $5,000 for a home today, in the long run that home could $100,000 more as the market goes up making you a nice profit.
Where first timers get in trouble is jumping at a home, especially the first one you look at, quickly without looking at how it will impact your life and budget. There will always be more homes that come on the market that you will love just as much.
That said, if you have your ducks in a row and love a house, go for it! Make sure you listen to your Realtor’s advice. Speaking of Realtors…
Not working with a realtor
Did you know that a buyer’s agent will work for you for free?
The agent’s commission comes from the seller when the home is closed. That means you get the realtor’s time, local expertise, and experience for free.
Many first time homebuyers are looking to save money and think not hiring an agent will help save money. So, keep the ball in your court and choose the agent you want to work with (me).
If you are ready to start your home buying journey and have questions, give me a call. I would love to help you!