If you are a first-time home buyer, everything is exciting! Searching hours online, touring homes, dreaming big and then you go to the bank for pre-approval. You cannot believe the amount of money they are going to loan you (it could be a larger amount than you expect or quite a shocker of how less or even not at all). Helpful tip – Go get pre-approved first!
There are a multitude of decisions to make and numerous houses to see. Before you start looking, make sure you’re not going to make a newbie first-time buyer mistakes.
1. Back to that tip I already mentioned – Get Pre-approved
If you haven’t been pre-approved, don’t go shopping. Go to your local bank, or a mortgage lender and talk to them about what your needs are. They are likely to run your credit, take income information and various other information and presto they will let you know how much they will lend you. Next comes the important part, how much is your monthly payment and can you afford the full amount they will lend you or should you pare down and look at lesser expensive houses.
2. Thinking You Can Do It By Yourself
All of that online research you have done I am sure that you feel that you are an expert but a Realtor is a valuable. Choose a Realtor that is experienced and an expert in YOUR area that you are looking at. The Realtor is paid by the Seller so you are getting all of their expertise and negotiation skills for FREE. To me that is a no brainer. Find the best Realtor you can.
3. The Perfect House
In many cases, your budget and your dream home do not align. The best thing to do in this case is to shop the market. There will be a home that has potential. A potential home should have good curb appeal – this means that the homeowners have taken the time to fix up their home and have most likely made the home move-in ready. Maybe the dream home has a swimming pool and picket fence but if you do not have the budget get as much square footage you can with the features you can afford. You can always add the pool or features you did not get later when you update the house.
4. The Home Inspection
You have done it! You and your Realtor have found a house, the contract has been negotiated, you have your pre-approval letter from the Lender and the earnest money to put down. Whew! Next a very important step, even if your bank doesn’t require it, you should always have a home inspection contingency on your home purchase. Hiring a licensed and experienced home inspector who will thoroughly inspect your home is an important step on the home buying experience. Regardless of the age and condition of the home, first-time home buyers can benefit from the expert advice of a home inspector. Home inspectors spend several hours assessing a home and provide a lengthy, written report on their findings.