When it comes to buying your first home, there are many steps in the process that may be overlooked simply because you have not had previous experience purchasing a home. For this reason, many new home buyers make mistakes. Here are the top three mistakes that are made that you should be sure to avoid:
Not Knowing What You Can Afford:
Knowing what you can afford is important and you may just believe that affordability means being able to afford the full cost of the home alone. However, this is not the case. You also need to keep closing costs in mind. You should also know what interest rate you are likely to receive because this is going to make a huge difference in your monthly mortgage payments. This is why getting a prequalification for a loan from a lender is so important. This is going to determine what homes are truly going to be affordable for you in the long run.
When you are purchasing your first home, most likely you aren't in the financial position to purchase a home that suits all of your needs. For this reason, it's important to keep an open mind. Since you haven't previously owned a home, you may not realize that many of the problems you see can easily be resolved once you make the home your own. For example, many new home buyers are thrown off by ugly carpets, an unkempt yard, or an ugly paint color. You must remember that all of these things can be changed as soon as you move in. Also keep in mind that if there are many changes that need to be made, you can negotiate on the price of the home so that you are able to afford these renovations and changes upon moving in.
Not Hiring an Agent:
Many new home buyers believe that they can go into the process on their own because they know what they want. However, having an agent when you attend an open house is going to ensure that you are not sucked into considering a home that is not the right fit for you. The seller's agent will always try to push the home on buyers who do not have an agent of their own with them. An agent is also going to help you avoid wasting your time looking at homes that aren't going to meet your needs.
When you know these top mistakes that new home buyers make, you can do what you can to avoid them and have a great experience purchasing your first home.
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