Purchasing a new home can be an incredibly exciting process, especially if you’ve never owned a house before. But, this process can be long and complex, which is why it is so essential to prepare ahead of time. While you may do everything in your power to prepare ahead of time, there are some common mistakes first-time buyers may make.
In this blog, we’ll discuss some of the most common mistakes to help you steer clear and ensure your first-time home buying process goes as smoothly as possible.
1. Attempting to Buy Without a Realtor
Purchasing a home can be a daunting and time-consuming process. This process becomes even more difficult when you try to buy a house without a realtor. If you’re a first-time buyer, it is essential that you turn to a real estate professional for support. There are many legal complexities and negotiation techniques you may not know that a seasoned professional will have under their belt to get you the best deal possible for your new home.
2. Ignoring Neighborhood Red Flags
Sometimes, first-time buyers get so caught up in the beauty of a home that they may not pay much attention to the neighborhood around them. But your neighborhood plays a big role in whether it’s the right home for you. When purchasing your first home, try not to get so caught up in the house that you ignore neighborhood red flags, like poor location, little access to essential services, or minimal family activities.
3. Waiting for the Perfect Conditions
When purchasing, many first-time buyers want everything to go according to their wishes. But, sometimes, that is easier said than done. Waiting until market conditions get significantly better or for the perfect home to come on the market may turn into the ideal house passing you by. While there are some things you can and should wait for, waiting for the perfect market conditions is an endless game.
4. Get a Credit Card Right Before Buying
While having good credit is an essential part of getting a good interest rate, it is important that first-time buyers don’t make any major credit decisions right before purchasing your home. Right before buying isn’t the right time to open a store credit card, get a new car, or charge thousands of dollars on existing cards. If you want to ensure you get mortgage approval, it is best to put off these decisions until you’ve moved in.
5. Looking for a Home Before Applying for a Mortgage
Although you may be antsy to begin looking at homes, it is important that first-time buyers don’t tour potential homes before applying for a mortgage. By applying for a mortgage before looking at homes, you give yourself a more realistic budget. This can help you set expectations and reduce your risk of disappointment when the first house you toured isn’t within reach.
6. Buying Outside Their Means
As they begin looking for a home, it isn’t uncommon for first-time buyers to look at large, stretching estates. While this is a great way to set goals for down the road, it might not be the best decision during your initial home-buying process. If you look at homes you can’t afford or choose a mortgage that stretches your expenses incredibly thin, you may back yourself into a place you’ll struggle to get out of. When your financial team recommends a specific mortgage payment, it is best to follow that as closely as possible to avoid overspending.
7. Using All of Their Savings
Before purchasing a new home, many first-time home buyers will try to gather as many resources as possible to ensure they have a sufficient down payment. But it is important that you don’t drain your entire account to gather your down payment. Choosing to use all of this money can be dangerous and doesn’t account for any potential challenges you may face in the immediate aftermath of purchasing. If you want to keep yourself safe, save some money to use as a safety net.
8. Overlooking Non-Traditional Mortgage Options
There are many mortgage options available to home buyers that sometimes go overlooked. If you don’t have a large down payment available, are a veteran, or are considering purchasing in a rural community, there are mortgage options that can make it easier for you to get a home based on your circumstances. If you qualify for a USDA, VA, or FHA loan, don’t immediately turn the opportunity down. Instead, do some research to decide if this is a better option.
9. Forgetting About Moving Costs
When you’re hyperfocused on purchasing a new home, it is easy to forget about what comes after your purchase. But, by forgetting about the cost of moving, you may put yourself in a precarious situation. Moving trucks, professional movers, gas, food, and lodging can quickly add up. Before you move, make sure to set aside plenty of money to pay for these essential goods and services. It will help you avoid putting thousands of dollars on a credit card immediately after this major purchase.
10. Disregarding Assistance Programs
There is no shame in accepting help where you can get it. Many first-time buyers choose to ignore potential local and federal government assistance programs when purchasing. These programs can help you gather money for a down payment, saving you thousands of dollars in the long run. If you’re about to buy, don’t push these programs aside. Even just a few thousand dollars saved could make a major difference down the road.
Helping First-Time Buyers Find Their Perfect Home
At Premier Utah Real Estate, our team is dedicated to helping first-time buyers across the Wasatch Front find the home of their dreams. Whether you’re interested in a townhouse, condo, or house, we’re here to help you every step of the way. We strive to make this process as easy as possible so you can reflect on this time period positively.
If you would like to learn more about how our team can help first-time buyers find their perfect home in Northern Utah, don’t hesitate to contact us today.
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