Searching for a home is an exciting process especially for first time home buyers. Whether I’ve been with clients searching for a new waterfront home in Lake of the Woods, looking at one level living ranches in Wilderness Shores, or considering new construction in Rhoadesville, I’ve learned that there are some common mistakes buyers make when looking for a home. Use what I’ve learned through over two hundred home sales to prevent yourself from making these common first time home buyers errors.
First Time Home Buyers Mistake 1: Saying no because of paint color or flooring.
Bright bold colors on walls can look fantastic when a home is being lived in or is staged. However, when everything’s gone, some colors aren’t appealing and turn off first time home buyers. Wall or floor colors are not a reason to walk away from a property. Why? These are things that can be changed. Even if it’s not in the budget to redo flooring immediately, adding some throw rugs can make the space more comfortable for you until you can change it. You can paint the walls of your home yourself or hire professionals. While professionals will be much more expensive, you will have the convenience of getting all the painting done in a week instead of over several weekends.
First Time Home Buyers Mistake 2: Wanting Everything without Compromise.
Many first time home buyers are so excited at the prospect of purchasing a home that they forget that compromise is part of the process. While there is nothing wrong with having high expectations for your future home, you also need to be willing to compromise to get there. This compromise may be with the price of the home, location, or home features. Creating a must have list (grab your own home search checklists) can really help to identify what features you need in a home and what ones you won’t miss.
First Time Home Buyers Mistake 3: Not Saving Enough Money.
It comes as no surprise that buying a home is expensive. In addition to the mortgage, there are some other upfront costs that first time home buyers may not be aware of such as the earnest money deposit, home inspection charges, and closing costs. Saving up for these expenses ahead of time as well as setting aside some money for moving costs is important.
First Time Home Buyers Mistake 4: Taking time to get information to lenders.
I know that it always seems like everything is going smoothly and then the lender suddenly needs more documentation. There really is an urgency in these requests as the documentation being requested is all related to you being able to secure a mortgage in time to purchase the home. Although it takes time to find the requested information, it’s worth making it a priority. (Here are some commonly requested items from lenders for first time home buyers.)
First Time Home Buyers Mistake 5: Shopping online before you talk to a lender.
You have got to know your budget before you shop. Speaking with a mortgage lender and getting pre-qualified for a loan will let you know how much money you have to spend. Plus your mortgage specialist may be able to give you suggestions for how to improve your credit score or financial portfolio that will give you more spending power.
First Time Home Buyers Mistake 6: Judging a home by the picture.
Bright and clear photography is meant to stop buyers from scrolling online. However pictures can’t always capture the vibe and layout of a house. Don’t turn down seeing a home because the pictures show cluttered rooms or aren’t your aesthetic. Remember all that clutter is going with the seller, what is important to you is the condition and layout of the house.
First Time Home Buyers Mistake 7: Not exploring the neighborhood.
Everyone has different preferences; some people like to be out in the country far from neighbors and stores while others want to be five minutes away from shopping. Make sure to explore all the neighborhoods of your potential homes to decide if living there is right for you. Drive from the neighborhood to your work to see if you are comfortable with the commute. Check out all the nearby parks and shopping.
First Time Home Buyers Mistake 8: Paying down a credit card or changing to a higher paying job.
Yes, these sound like good things. However, your mortgage application and approval is based on the information that you provided your lender. When this information changes, it can impact your ability to get approved for a mortgage even if the things you do are positive. Always, always, always talk with your lender before making any financial changes.
First Time Home Buyers Mistake 9: Not getting a Realtor®.
You find a home and approach the real estate agent selling the property to get some information. If you are interested in writing an offer for the home, you should get another Realtor® to represent you. The seller’s agent is legally obligated to act in the best interests of his/her client even if the agent is friendly, helpful, and kind towards you. You need someone who is obligated to act in your best interests. Hey! I know an amazing Realtor®.
First Time Home Buyers Mistake 10: Letting the opinion of others override your own.
Everyone wants reassurance when making a big purchase especially first time home buyers. It can be helpful to ask other questions and get their opinions about a home. But, the only person who needs to be comfortable with the home purchase is you. You are the one living in the home so you need to be confident in your purchase.
