Top 5 Mistakes First-Time Home Buyers should avoid during House Hunting.
You’ve made the decision to get rid of shifting between rental properties and finally own your home! You’re about to embark on a homebuying journey whose first step starts with hunting houses. A lot of emotion goes into the home-buying process. You might make a number of common first-time home buyer mistakes if you let those emotions rule you. Since homeownership has broad implications, it’s crucial to control your emotions and come to the best decision you can.In this blog we will discuss all mistakes during house hunting.
It is perhaps the biggest investment you will make in your life when purchasing a home. Even though buying a home will undoubtedly require you to spend a significant portion of your savings. However, the idea of having to make all the important decisions that go along with it can be quite frightening, especially for first-time home buyers.
You can always use some home buying techniques to simplify the process for yourself, regardless of whether this is your first time investing in real estate or not. Here are the major mistakes that the majority of first-time home buyers make. Keep reading so you can avoid them when embarking on your homebuying journey!
1- Mistake #1 Not Being Aware Of What You Can Afford
One of the popular first-time home buyers’ mistakes is not knowing what they can afford when looking for a house. You’ll end up obsessing after things you can’t afford if you look in places that are out of your price range. You could end up in a risky situation where you try to spend more money than you have or make you unhappy with the things you can actually afford.
Make sure you don’t purchase a home that is too costly for you if this is your first time purchasing a home. One of the first steps in purchasing a home for the first time is creating a budget. Before starting your house search, you should find out how much money the bank will ultimately lend you if you plan to make a loan application.
Determine what you can afford each month if you plan to buy a house in installments. You must manage your household budget in order to achieve that. You can begin by writing down your total monthly income. That means deducting all of your utility bills, car payments, transportation costs, taxes, insurance, and groceries, to name a few. Your net income would be the balance. This will help you to understand how much you can afford to spend each month.
2- Mistake #2 Not Acquiring A Mortgage Pre-Approval
The procedure for getting pre-approved for a home loan should be on any checklist you make when looking for a home. A pre-approval letter can give homebuyers a lot of negotiating power with sellers. In contrast, not receiving a pre-approval letter implies that you must look at homes without knowing the maximum amount that the lender will lend. This might lead to making an offer on a house that is out of reach financially, wasting everyone’s time. A pre-approval letter outlining the amount the lender is prepared to loan the borrower will be given to you. Having this letter demonstrates to sellers the legitimacy of the buyer’s offer.
Benefits Of Getting Pre-approval
- When a lender pre-approves your loan, they have assessed your financial situation and determined the price range of the new house you can afford.
- By determining what you are able to afford, getting pre-approved also can help you save time in your home search by focusing on properties in your price range.
- Because sellers and real estate agents are aware that you have spoken to a lender and are serious about the transaction, you will probably have more negotiating power if you have a pre-approval letter in your possession.
- Pre-approval can facilitate a quicker closing because the lender already has a lot of your financial data in its database.
3- Mistake #3 Planning To Buy Without A Real Estate Agent during House Hunting
One of the major first-time home buyer mistakes is thinking they can handle the homebuying journey on their own. Second-time home buyers may opt for this as they’ve been through the process of buying before. In contrast, first-time home buyers don’t have full knowledge of the buying process with regard to its steps and strategies.
According to the National Association Of Realtors, 87% of buyers used a real estate agent or broker to buy their house. When choosing an agent, 52% of buyers said they wanted an agent who could assist them in finding the ideal home. Working with a real estate agent is especially important when purchasing your first home because they are extremely knowledgeable about the procedure, up to date on the best areas and market trends, and have access to property listings that aren’t made public.
4- Mistake #4 Not Paying Attention To Home Inspection Checklist
First-time homebuyers often mistake not paying enough attention to check every nook and cranny when hunting for houses. Nothing is worse than realizing there are numerous underlying problems that will cost a lot of money to resolve after getting the house of your dreams, or so you thought. This is what you should not do before making your first home purchase. No buyer should ever make a down payment or sign an agreement that is legally binding without conducting a thorough house inspection.
- Checking the property’s foundations is one of the most crucial pieces of homebuying advice.
- Huge wall or ceiling cracks are huge signs of a weak foundation. As a first-time home buyer, you should also keep in mind that while unsightly wallpaper and cracked paint can be fixed, adding a room or fixing water damage would have a significant financial impact.
- Ensure the house’s plumbing and wiring, as well as the house’s ventilation and location in a secure area with few crimes.
5- Mistake #5 Stressing Every Little Cosmetic Issue during House Hunting
Don’t mistake a bad-looking home for a bad-quality home. Judging a book by its cover is mostly proven wrong. Cosmetic issues are fixable. Rather, look for a strong base and a solid foundation when house hunting! It makes sense to favor the more aesthetically pleasing properties when looking for a new home. But cosmetic features frequently serve as fashionable, decorative extras.
Instead, you ought to base your choice on the fundamental qualities and worth of the house. This includes the plumbing, electrical system, and ceiling of any potential home. Major components are costly and time-consuming to install or replace. These include the roof, heating, and cooling systems, pools, patios, and lush, green lawns. Big ticket items increase the value of real estate and should be taken into account when making a choice or an offer.
Allow Regentology To Help You Make Mistake-Free Decisions!
Let Regentology make your house hunting process enjoyable for you by helping you avoid first-time home buyer mistakes. House hunting can be a pretty complex process, especially if it’s your first time doing that. With a plethora of options, such as different neighborhoods, price ranges, mortgage options, and housing varieties- it can all become pretty confusing.
Regentology is your go-to option for all your housing needs. We take care of the home buying process from the start till the very end. Whether it’s house hunting, searching for expert realtors, or looking for mortgage plans- we take care of EVERYTHING. Allow us to start and make your first-time homebuying process as pleasant as possible by filling out our form!