5 Common Mistakes Made by First Time Home Buyers

The process of buying a home can be both exciting and overwhelming.  It’s filled with missteps that any new home buyer could fall prey to. You want to buy a home you love and can afford but the steps you take can prevent you from achieving this dream. 

Here are the 5 common mistakes first-time buyers often make and with advice on how you can avoid them.

1. Not researching the costs of obtaining a mortage
   Many first-time buyers don't realize how expensive it is to borrow money.  Especially since that is only portion of the costs buyer sincurr when buying a home.  Just because your mortgage requires 3.5%-20% down payment doesn't mean that that's all you need in your savings.  It's important to understand the out of pocket costs so that you can plan on how much cash you can bring to the table which will drastically impact your purchasing power.  Get a detailed list of estimated closing costs HERE.                                                                              
2. Not getting pre-approved for financing early on Before you can start shopping for a home, consider getting a pre-approved to know what the bank is willing to lend you and exactly which houses you can afford and which are out of your reach. It won’t make sense to place an offer on a home only to find out later that the lender won’t give you what you expected. Learn more about the types of mortgages HERE. Get Pre-Qualified HERE.
   
   
3. Making decisions based on emotions 
   Real estate transactions are extremley emotional ordeals. There are a million ups and downs and extremley complicated negotiations that seerm to never end.  It is important to have an experienced negotiator like myself on your side to help you step back from a situation and handle it objectivley.  Sometimes, its easy to get so caught up in some of the personal details that you lose track of whats important and make poor decisions.  Read my reviews HERE and let me help you avoid costly mistakes that EVERYONE makes when they let their emotions lead the way.
   
   
4. Messing up with your credit score before closing 
   Just because you’ve been pre-approved does not mean that the funding is guaranteed. A majority of lender decisions is based on your Debt to Income Ratio.  Don't go out and buy a new car without talking to your loan officer first! A lender may reduce or withdraw the offer if your income levels or credit score changes drastically. While shopping for a home, pay credit balances, pay your bills on time, and avoid making major purchases using your credit card.
   
   
5. Not hiring a REALTOR® / Calling Listing Agents Direct
   Some first-time buyers believe that they’ll be able to save money by not using the services of a real estate agent. There’s no cost to you for working with a REALTOR® since the commission is paid by the seller. A REALTOR® will give you truly independent advice and work in your best interests. Many buyers do not understand how agents make their money and what their duties are to their clients.  Agents only get paid for their hard work when a deal closes, they also have a Fiduciary right to their Sellers to do what is in their best interests.  As a buyer, obtaining an experienced and loyal agent upfront to handle all of your showings will save you time, effort and money.  To read more about Real Estate Ethics, click HERE.

As a first-time homebuyer, this may be your largest purchase ever and it’s important to be aware of potential pitfalls so you can avoid them.

It's my goal to help you buy your home with confidence. Don't hesitate to contact me to get your buying journey started.  Contact me today 609-713-8952 CJDavies3@gmail.com