If you’re buying your first new home, mistakes are inevitable. From searching for the perfect house to finding a realtor, securing a mortgage, and going through escrow and signing, there’s a lot going on, much of which you’ve never done before. Give yourself a leg up on the process by learning how to avoid these 5 mistakes:
- Neglecting Their Finances.
Taking care of your financial health ahead of a home purchase sets you up for success. Manage your credit score, reduce your debt, and save for a down payment. Once you’re ready, get pre-approved for a mortgage so you know how much you can afford before you go house hunting.
- Foregoing a realtor.
New buyers are often tempted to forego a realtor, assuming that the internet will give them all the assistance they need. Not true. A good realtor is invaluable; they will help you find great homes in your price range and help you out-negotiate competitors who are only using the internet.
- Spending too Much.
Many first-time homebuyers simply bite off more than they can chew. Keep your debt to income ratio low and make sure to factor in all the costs of home ownership including insurance, property taxes, HOA fees, and regular maintenance and repairs.
- Skipping a Home Inspection
If you’re tempted to save money by skipping a home inspection, think again. Houses are complex structures and a lot can go wrong. Don’t risk expensive surprises like roof repairs, needing a new furnace, or fumigating for termites; get the inspection and get peace of mind.
- Underestimating the Importance of the Location
The neighborhood has a big impact on how you will ultimately feel about your home. Get to know the area before moving in. Is there an HOA? Are you subject to considerable restrictions about paint, landscaping, and other improvements? Is it quiet? Is it safe? Is it in a convenient location so you can access your favorite amenities? In the long run, it’s much wiser to forego a handful of design features in favor of a great location and neighborhood.
