In 2020, home sales were at a record high since 2006. Although the demand for houses drove the prices up the past couple of years, things are finally beginning to slow down.
So, if you want to purchase a home, now is the time to start looking for a deal. But, of course, if you are a first-time homebuyer, you’ll want to take your time and develop a home shopping strategy.
Would you like to get the best bargain on your dream home? If so, keep reading as this post covers common home buyer mistakes and teaches you how to avoid them.
Table of Contents
1. Not Making a Budget
Once you choose to buy a home, the very first thing you should do is sit down and create a realistic budget. Doing so will prevent you from looking out of your price range or ending up with a burdensome mortgage. So, set your price range before you start browsing listings.
2. Forgetting the Hidden Costs of Homeownership
Besides comparing home prices, there are a lot of other costs to consider. For example, you may not realize how expensive utilities, property tax, HOA fees, and maintenance cost if you rent. So, be sure to do your homework and calculate these expenses into your budget.
3. Waiting to Talk to a Lender
Many people wait until they find their dream home to speak to a lender. But, they may end up getting a higher rate than expected due to credit report issues.
So, the best thing you can do is see what kind of rates lenders offer you in advance and whether you need to work on your credit score before purchasing a property.
Of course, if you are pre-approved at a great rate, this will help you stay within your budget and give you more leverage when making an offer.
4. Not Getting Rates From Multiple Lenders
Most people get lender recommendations from family members, friends, or realtors. But, you shouldn’t choose a certain lender just because someone said they offer good rates. Instead, shop around and check out at least three different lenders before committing to one.
5. Not Researching Programs for First-Time Homeowners
Down payments are a huge obstacle for many people, but plenty of programs assist first-time homeowners. So, if you don’t have quite enough savings, don’t assume you can’t afford a home. Instead, check out local and state programs that help with closing costs and down payments.
6. Buying Without an Agent’s Help
Another common mistake is trying to purchase your home without the help of a real estate agent. They have access to MLS listings and types of homes you may not have found on your own, such as new Fieldstone homes. And, they are experts at finding homes for families!
Their fees are well worth it since they can save you from making big mistakes when purchasing a home. Plus, they may be able to get you a better deal!
Don’t Make These Home Buyer Mistakes!
After reading this post, you are ready to avoid the most common home buyer mistakes! So, do plenty of research, set a budget, and find a good deal on a mortgage. Then, contact a local realtor to get started in your search for the perfect home!
Would you like more real estate tips? If so, check out more of our content aimed at home buyers!