First time buyer’s tips

 

First time buyer’s tips

 

The challenge of buying a home for the first time can seem so daunting that it's tempting to either just go with the first house that falls in your price range or to give up when you can’t find a home within your budget and continue to rent.

The benefits of homeownership, however, outweigh renting. Consider the following points to keep you on track.

 

Do

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1. Start saving for a down payment early

2. Explore available mortgage options and grants

3. Research availability of state and local down payment assistance

4. Gather and organize all the documentation needed for the loan application

5. Work with an experienced mortgage broker

6. Get pre-approved before you start looking at homes

7. Hire an experienced realtor to represent you

8. Try to pick the area over the home

9. Stick to the budget as per the pre-approved loan

10. Be realistic about the home you can afford

 

First-time home buyer mistakes to avoid

 

1. Waiting for home prices to come down

2. Hoping to know everything when buying their first home.

3. Having too much consumer debt

4. Start looking at homes without being pre-approved for a home loan

5. Looking at homes over their budget (see the previous point)

6. Being unrealistic as to what they can afford

7. Not hiring a Realtor to represent them

8. Believing the friend, co-worker, or the relative who “knows more than their realtor”

9. Not communicating needs and wants clearly to their realtor

10. Low balling the price once a suitable home is found

11. Buying a home for today instead of tomorrow

12. Passing up the chance to negotiate

13. Not budgeting for closing costs

14. Not saving enough for after move-in expenses

15. Not performing a home inspection

16. Not knowing the limits of a home inspection

17. Not knowing the limits of a home warranty

18. Not buying adequate homeowner’s insurance

19. Not budgeting for supplemental property taxes