Buying a first home often comes with some overwhelming feelings. While it’s an exciting venture, other people tend to get scared and fearful. Since it’s one of the greatest investments you will ever make in your life, you need to be fully prepared to make a good purchase. Unfortunately, some first-time homeowners fail to make the right decisions amid mixed feelings, hence making some bad and costly mistakes. In order to avoid financial losses, heartbreaks or frustrations, there are avoidable mistakes that you shouldn’t commit when buying your home for the first time. These include the following:
Looking For a Home Before Applying for a Mortgage
Buying a property requires huge capital investment. One thing that most first-time buyers make is looking for a home even before getting preapproved for a mortgage. The danger in doing so is that you will get a home that you won’t be able to afford. Since the housing market is highly competitive, you will end up losing the dream house when you finally get the finances. That said, it’s always recommended that you first visit a mortgage lender or the bank to get a mortgage pre-approval before commencing with your home hunt.
Working Directly With a Listing Agent
As a first-time homebuyer, you might be tempted to work directly with the seller’s listing agent. While it may sound like a sweet deal, experts strongly discourage such mistakes. Generally, a listing agent will always work on the side of the property owner. Their job is to sell the property at a price predetermined by the property owner, after which they earn a certain commission. With this in mind, the listing agent will always intend to sell the property highly to get high commissions. This is the reason why you should avoid working with them at all costs. Instead, you should work with a buyer agent who will negotiate on your behalf.
Skipping a Home Inspection
Before you make the purchase offer, homeowners should always attempt to do a home inspection physically. As a first-time homebuyer, doing an inspection protects you from buying a home with lots of deficiencies or damages. For example, it helps alert you when the house has mold growth or structural issues. You can either choose to inspect by yourself or hire a professional realtor. At reliable agent offices, like The Dave Hooke Team: Keller Williams of Central PA, there are teams of reliable, knowledgeable, and professional realtors who will inspect and your journey towards making a successful home purchase.
Overstretching Your Budget
When doing your house search, it is easy for a prospective first-time homeowner to fall in love with the appealing look of a home on offer. Unfortunately, looks can sometimes be deceiving, which is why you need to limit your hunt on your budget. Buying a home exceeding your budget, however good it is, can affect your future financial muscles. Therefore, when negotiating for the price of a property, ensure you factor in other expenses associated with owning a home. These include monthly utilities, insurance, maintenance, and refuse.
Every first-time homeowner gets filled with mixed feelings and reactions. Other than being excited, there is also the element of scariness. Therefore, it’s easy to make avoidable mistakes that will cost you happiness and finances. While first-time homeowners commit several mistakes, the above-mentioned are the most common, yet avoidable.