5 First Time Home Buyer Mistakes To Avoid – As a first time home buyer, it is important to avoid mistakes when buying a home that could lead to issues later. Here are 5 first time home buyer mistakes that you should avoid.
1. Skipping the home inspection
Buying a new home can be expensive and buyers want to save money as much money as they can, but skipping on the home inspection could be costly long term. Home inspectors typically look for abnormalities in basements, attics, and mechanical rooms in addition to other surface areas of the house both inside and outside. This potentially saves the buyer from costly repairs well after closing. Spending a couple hundred dollars for home inspection is well advised in the investment of the new house so don’t skip out!
2. Forgetting or Ignoring the hidden costs
Frequently first time home buyers forget about the additional costs when purchasing a home. Things such as taxes, homeowner’s insurance, utilities, closing costs, etc really add up. Consider these costs and talk with a lender and/or realtor for more information and make sure there are no forgotten costs.
3. Not researching the neighborhood
When purchasing a home, it is important to research the neighborhood to make sure it is the right fit for the buyer. Often most buyers first look at the schools to see if it fits the needs of their family. Another item to research is the crime rate of the area to see if it is a neighborhood that you would feel comfortable coming home to. Find out if the neighborhood has amenities that you would like to use. Discover answers to questions such as, is there a park within walking distance, is the shopping close, is the drive to work or school reasonable? Ask yourself these questions when searching for the perfect house. Be aware and examine the surroundings and not just the house itself.
4. Borrowing the maximum amount of money allowed by the lender and failing to create a realistic budget of expenses
Frequently lenders approve a buyer for a loan that is larger than they can afford, and often the buyer may splurge on a bigger home and not take in account the extra costs a bigger house could entail such as larger utility bills and general upkeep of a house. It is important to make a budget and stick to what amount feels comfortable and do not forget to take in account extra house expenses.
5. Placing too much faith in online loan information
Searching for loans online can be a somewhat tricky. Working with a lender in person will simplify the process of obtaining a loan and lenders can also see if a buyer qualifies for special products, such as, FHA and VA loans.