10 Homebuyer Mistakes to Avoid & How to Fix Them

Purchasing a first home is one of the most epic and important steps in life. It can however be daunting as well, particularly when you are not conversant with the process. We have assisted many first-time homebuyers in the market successfully at Seabrooke Group. In order to make sure that you are not making mistakes , we have compiled a list of the 10 most popular traps that first-time home buyers fall into and how to prevent them.

Failing to be Pre-Approved to buy a Mortgage.

Pre-approval to a mortgage should always be one of the initial steps towards the home-buying process. It is a great mistake that many first-time buyers commit as they begin their search of a home without having the information on how much they can afford. This most of the time results in disappointment as they fall in love with a property that is beyond their budget.

How to Avoid It:

• Get pre-qualified with a reputable lender to know your price bracket before you start shopping on houses.

Possessing pre-approval letter will also demonstrate to sellers that you are a serious buyer, thus this will make your offer be competitive.

Failing to include other expenses on top of the down payment.

Whenever you consider purchasing a house, what comes to mind is the down payment. Nevertheless, a lot of first time home buyers lose sight of the invisible expenses incurred when purchasing a house which includes closing expenses, house inspections, property taxes, and houseowners insurance.

How to Avoid It:

• Closure costs budget that is usually between 2-5 percent of the home price.

• Do not overlook such recurring expenses as property taxes, maintenance, and homeowners association (HOA) fees.

Lack of Settlement of a Realistic Budget.

One can fall prey to the hype of purchasing your first house but too much spending well beyond your means can lead to financial pressure in future. Having a realistic budget means not only the cost of the house but the entire entertainment costs.

How to Avoid It:

• Calculate the mortgage with a mortgage calculator to know the amount that you can afford depending on your income and expenditure.

• Reflect on your present and future aspirations- Acquiring a house should be an easy task and not a financial burden.

The Omission of Home Inspection.

Home inspection is an important procedure in the purchase of a home but most buyers bypass this procedure in order to save money or time. Through a home inspection, one may identify some underlying problems such as the foundation, plumbing, or electrical problems which may be costly to fix and costs thousands of dollars.

How to Avoid It:

• Always invest in a professional house check up.

• Never let little cosmetic problems influence you, make sure the key systems of the house are in fine condition.

Failure to Take into Account the Neighborhood.

As the house is significant, the neighborhood is as well. A lot of first time purchasers are infatuated with a property and fail to think of the location and end up regretting their purchase in the future.

How to Avoid It:

• Check the neighborhood- investigate the schooling, shopping facilities, and transportation facilities and crime levels.

• Go to the location on various times of the day to have an idea of the environment and noise.

Allowing Emotions to Lead the Decision.

It is very easy to get emotionally attached to a house and this is particularly because it fits most of your boxes. But when emotions are allowed to prevail in the process of buying a home, they may result in regrets and poor choices.

How to Avoid It:

• Get on a list of must-haves and deal breakers.

• Take your time and do not hurry up with the decision. When you are not sure, then it is wise to turn and continue searching.

Disregarding the Future Resale Value.

Lots of first-time buyers are interested only in the satisfaction of their current needs and do not think about the future resale price of the house. Nevertheless, it is always important to look at the resale value, in case you intend to relocate in a couple of years.

How to Avoid It:

• Seek houses in good areas that have good prospects of growth in the future.

• Select one that has characteristics that will attract a large number of buyers like having a good floor plan and attractiveness.

Failure to Compare Mortgage Offers.

First-time consumers are likely to take the initial offer on a mortgage without looking at possibly better rates and conditions. A change in the interest rate as minimal as one can be can cause a tremendous difference in monthly payments.

How to Avoid It:

Shopping Mortgage offers Customers should shop and compare mortgage rates across different lenders.

• Reflect on the APR (annual percentage rate), and it entails the interest rate and other applicable charges.

Being Hasty to Seal the Deal.

Purchasing a home is such a huge undertaking and in haste closing may result in lost opportunities or errors. Homebuyers who are first time feel compelled to make a rush to buy the property lest they are forced out of the business.

How to Avoid It:

Before signing the contract and documents, take time to look into them.

• Always ensure that you read everything and then sign it. There is no need to be afraid to ask questions or to postpone closing should this be necessary.

Lacking an Agent to deal with in Real Estate.

Most first time buyers also make an effort to do home-buying process on their own to save money which can be very costly. A real estate agent will know the way to go and helps you in the process of identification of the property to be purchased to bargaining the best price.

How to Avoid It:

• Contract an experienced real estate agent, who is well versed with your needs and would assist you in making informed choices.

• An agent is also able to assist you to go through the bureaucracies and legalities that may save you time and money in the long-term.

________________________________________

Conclusion

Purchasing a house is a fun and fulfilling experience; however, one should not fall prey to the pitfalls that can result in an expensive purchase. With proper planning, organization, and professional help of Seabrooke Group, the process of buying a home is easy and successful.

When you are willing to make a move towards homeownership, Seabrooke Group is about to assist you. Call us now to find out more on our ability to help you in every step of the process!

________________________________________

The first time buyers are the audience of this blog, as it provides a valuable idea and solution in a real-world situation with the obvious inclusion of Seabrooke Group as a reliable tool in the process. In trying to correct these misconceptions and provide an easy way out, we believe we will be empowering the first-time purchasers to make informed decisions confidently.