5 First Time Home Buyer Mistakes To Avoid – When you are a first time home buyer, it is important to avoid mistakes when purchasing a home. Learning the typical home buyer mistakes now will help you save time and money in the future. Here are 5 first time home buyer mistakes that you should avoid.
1. Not researching the neighborhood
When purchasing a home, it is very important to research the neighborhood to make sure it is the right fit. The majority of buyers often first look at the schools to see if it fits the needs of the family. Another item to research is the crime rate of the area because it is important to live in a neighborhood where you would feel comfortable. Find out if the neighborhood has the amenities that you would like to take advantage of if you chose to live there. Is there a park within walking distance, is the shopping close, the drive to work or school reasonable? Ask yourself these questions when considering the perfect house. It is important to look at the surroundings and not just the house itself.
2. Borrowing the maximum amount allowed by the lender and not creating a realistic budget of expenses
Frequently, lenders could approve a buyer for a loan that is bigger than they can afford. Therefore, the buyer may splurge on a larger home and not take into account the extra costs because a bigger house could have larger utility bills and general upkeep. You should make a budget, and then stick to what amount feels comfortable. Don’t forget to add in extra house expenses.
3. Put too much faith in online loan information
Searching for loans on the internet could be a somewhat tricky. Working with a lender in person will help clarify the process of acquiring a loan, and they can also determine if a buyer may qualify for special products, such as FHA and VA loans.
4. Not shopping around for loans
You could save money on your new home by talking to various lenders because some lenders may be able to get a lower interest rate and closing costs, etc. because many banks have different processes. Shop around, and try to get 3 or so no-obligatory quotes from different lenders and choose the best one for you.
5. Not considering the resale value of your home
When looking for a brand new home, sometimes it helps to look at the big picture, which ultimately could be the resale of the house. When considering a new house, take into account preferences a usual home buyer might look for–something they can see themselves making their own. One home buyer may love the coral pink tiles in a bathroom, while other buyers may not. When adding new additions to the house, consider what it will do to the future resale value of that home.