1st Time Home Buyer Common Mistakes
Are you a 1st time home buyer? These tips will help make the process much easier so you don’t make these common mistakes.
Buying a home is one of the most significant purchases that most people will ever make in their lifetime. It is something that you should do a little bit of homework and inform yourself before doing. You don’t want to make a mistake that could cost you time and money.
What Are Some Common Mistakes That 1st time Home Buyer Makes?
Not Getting Pre-Approved Before Looking at Homes
Many home buyers are excited and want to jump right into the search, often looking at homes that are well out of their budget. It is best to speak with a lender to get pre-approved before you even start your search. This will save you time and put you in a better position to make an offer if you do find a home that is right for you.
This will also help you understand how much you will need for the down payment.
Big Item Purchases
While it sounds like a great idea to go out and purchase new furniture, appliances, and home decor for your new home, you should probably wait until after you close on the house to make these big item purchases. The bank doesn’t like to see a lot of activity going on with your funds while you are going through the lending process. Waiting until after the day of closing will help keep things in check and good with your lender.
You shouldn’t change jobs while going through the home buying process. When your lender approves you for the loan, they are basing things off of your current job and salary. Changing jobs can actually upset the lending process and stall the closing of your home.
Not Hiring a Real Estate Agent to Represent You
Many people feel that calling the listing agent directly will allow them to get a better deal, or secure the home. This isn’t always true. The seller hires the listing agent, therefore they are looking out for the seller’s needs. While they are required to play a neutral role when representing buyer and seller, it isn’t going to give you more leverage by hiring the listing agent. Instead, consider hiring an agent to represent you and look out for your best interest.
Not Doing Your Homework
This can mean a lot of different things. It is essential that you do your homework and understand not only the home buying process but also the different types of loans offered. You can shop around for better terms and rates as well. You will also want to do your homework and look at different parts of town and areas where you might be considering purchasing a home.
Not Hiring a Home Inspector
While home inspections might seem costly upfront, they can save you a lot of money in the long run. It is always a good idea to hire a professional home inspector to come in and inspect the home so that you have a better understanding of what might be going on in the house. If there are major defects, you will have the option to ask the seller for repairs or back out of the contract.
Not Getting a Home Warranty
Home warranties offer peace of mind. Often many sellers will provide a home warranty to buyers so that they don’t have to stress about things that may pop up after they become homeowners.
With a HomeMemership plan you help you avoid costly repairs if a home appliance breaks or major system stops working, you would have an easy way to submit a claim and one of our specialized, pre-vetted professionals will be on their way to repair or replace your covered item.
Our membership also includes Members-Only Discounts towards home services, retail shops and more. From lawn care to interior decorators and carpet cleaners, our warranty offers immediate benefits that go beyond standard long-term protection.
Your membership gets you discounts from local businesses on services for your home so you can save money now and later.
We also offer a $0 deductible on repair claims. You will not find this option with any other home warranty company. That could save you $100 every time you have a service request.
Buying a home is a huge step. It is one to be excited about, for sure. Check out these tips about How To Manage The Stress Of Buying A New Home.
We hope that these tips for a 1st time home buyer will help you avoid some of the costly mistakes that many new homeowners make.