If you are looking into purchasing your first house, the steps can be complicated and your lack of experience may be a bit frustrating. On top of this, many first-time buyers make common mistakes because of this lack of experience. Luckily, when you know what mistakes to avoid, it can provide you with the necessary means to ensure that your first-time home buying experience is a more positive one. Here are four common mistakes to avoid:
- Not Shopping Within Your Price Range: Before you even start looking at homes, you need to get a pre-approval from a lender. This pre-approval is going to tell you exactly what you can afford, which is impossible for you to determine on your own. A pre-approval will determine the amount you are actually approved for and the interest rate you are more likely to receive. When you know this, you should only shop for homes within this price range. Otherwise, you may get your hopes up only to discover that the home is nearly impossible for you to pay for each month on top of maintenance costs.
- Not Having a Real Estate Agent: Almost every home buyer should have a real estate agent unless they have a large amount of experience purchasing properties. Without a real estate agent, you can get trapped into taking the advice of the seller's agent, which is never a good thing. This is because the seller's agent only has the best interest of the seller in mind. Although they may tell you this is the right home for you, it's only because they are trying to get the house sold, not because it actually is your best option.
- Not Getting a Home Inspection: Although you may be eager to move into your first home, you should never skip on having a home inspection done. Without a home inspection, you can end up moving into a home that has a wide range of problems. If you know about these problems before actually purchase the home, you will have more negotiating power on the price of the home. This way, you can save money on the cost of the home, which you can then put into repairs if you do decide to go through with this purchase.
- Not Taking the Full Cost of a Home Into Consideration: Besides the cost of your monthly mortgage, there are other costs to consider. If you are pre-approved for an amount you can barely afford, shop for homes that are less than that. This will ensure that you have money to pay for maintenance costs on the home, electricity costs, which are often much higher than electricity costs in an apartment, and more. Keep taxes on the home in mind, as well. When you do this, you can purchase a home that you can truly afford.
When you avoid these four common mistakes, you can be sure that your first home buying experience doesn't fall flat.
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