5 Common Mistakes of First Time Home Buyers
Are you considering buying your first home soon? Congratulations! Owning a home is a huge step, and a huge investment in your future. While the process can be very fun and exciting, it can also be a bit overwhelming, especially to first time home buyers. Before you decide to put an offer in on a house, you’ll want to do a bit of research and be sure you are making the best decision for you.
Here are some common mistakes often made by first time home buyers:
1. Buying Beyond Your Means
One common mistake that many first time home buyers make is getting a mortgage that is more than they can afford. While it’s hard to deny that owning a home is a sound financial decision, this isn’t exactly the case if you don’t have enough left over after your mortgage payment to live comfortably. Don’t bite off more than you can chew!
Don’t base your budget on what you think will happen, but instead go by your current income.
2. Predicting The Future
Another common pitfall many first-time home buyers face is calculating finances with expectations of future income that isn’t guaranteed. Don’t base your budget on what you think will happen, but instead go by your current income. For instance, the annual raise you’ve enjoyed for the last few years could very well disappear down the road—so don’t base what your comfort zone is on the possible future raise.
3. Not Calculating Costs Properly
Closing costs, homeowners insurance, moving costs, HOA fees and property taxes can all take a significant bite out of your budget. Make sure to figure all of these fees into your budget! When working with our team we carefully help you calculate these expenses so you know what the true costs of homeownership will be.
Our team helps you further maneuver through the 20 people and 40 steps that take place for a successful closing. This kind of help can be priceless.
4. Not Checking HOA Regulations
HOAs can be a wonderful thing, or a huge hassle, depending on your personal preferences. While many people enjoy the end result and consistency that HOAs can add to a neighborhood, others can feel stifled and angered by strict rules and regulations. Be sure you know what is expected of you, and what you can expect from your HOA. Our team has ready access to get the rules and regulations for a prospective home.
5. Not Getting An Agent
Yes, an agent does receive a commission, but skipping the agent may end up costing you far more than the commission would. Plus, as a buyer you do not pay our commission. A good agent knows the local market, and can offer sound advice on pricing, mortgages, and other aspects of real estate, and help guide you through the paperwork. Once you have a transaction, our team helps you further maneuver through the 20 people and 40 steps that take place for a successful closing. This kind of help can be priceless.
Are you looking to buy or sell a home in the Greater Seattle area? We can help!