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Distinctive Buyers : What you should know before : 10 Mistakes First Time Buyers make
- Not Having a Great Realtor. Buying a home is one of the most important steps your family can take. Why trust those crucial decisions to an average agent. Agents win awards and customers because they earn them by giving extra service to their clients.
- Timing Problems. Not planning the move to coincide with the end of their lease often creates a big dent in the budget. Check with your landlord about an early release clause from your lease if you are considering buying a home.
- Buying the Wrong Sized Home. Consider how long you plan on being in the property and plan for any lifestyle changes that could possibly happen.
- Buying in a Neighborhood You Know Nothing About. Think about whether or not this neighborhood will make you as happy as the house does. Do your homework.
- Operating on a First-House-is-Best Theory. Season your eyes by inspecting different types of homes. This will help establish your objectivity after coming from a renting situation.
- Buying a Property That's Difficult to Resell. Walk yourself through all the negatives to the property. Most first-time home buyers sell within five to seven years. Think long and hard about how you would sell the home prior to buying.
- Overextending Your Budget. Avoid feeling pinched - just because you have been pre-qualified to a certain level doesn't mean that is where your comfort zone is for payments. Write down everything you spend for two months that will give you a real picture of what you spend. Then plan for emergencies, vacations, savings, and upkeep of the new home. You'll have a much better picture of what kind of payments you can really afford.
- Being Indecisive. Take all the time you need, but don't be afraid to make a commitment when you've found your dream home. Everyone gets cold feet at some time during the process.
- Choosing the Wrong Mortgage. The thirty-year fixed rate is not the only or necessarily the best answer. Have your lender show you on paper how much each program will cost you and how they compare with each other.
- Under-insuring the Property. Forgetting to increase insurance coverage as the home appreciates in value or neglecting to properly insure the replacement value of the contents.
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