5 Mistakes First-Time Buyers Make
Here are the top five first-time buyer mistakes you should avoid.
Many buyers jump into the real estate market without knowing what they’re doing. These are the top five mistakes I see first-time homebuyers making in our market:
1. Not knowing their numbers. You want to know what your credit score needs to be to qualify for a loan and get the best interest rate possible. You’ll also need your 1099s and W-2s. Ensure the monthly payment for your new home won’t exceed 25% to 35% of your take-home pay. Knowing these numbers will help you be in the best buying position to make the strongest offer you can.
2. Not understanding that their first home may not be their dream home. It might not be the home that a millionaire worked 30 years to afford to build. You’re trying to get into a house to begin building equity so you can one day sell that house and maybe buy your dream home.
3. Making decisions based on emotions. Don’t make a huge purchase like this just based on emotions. Perhaps you love a house because it has blue cabinets, but it doesn’t have the third bedroom you need. Make sure you’re being practical about your approach.
"Ensure the monthly payment for your new home won’t exceed 25% to 35% of your take-home pay."
4. Not understanding the true cost of homeownership. If you don’t know what it will truly cost to own a home, you’ll be in bad shape after you close. For instance, if you’re currently renting, you don’t have to worry about the AC breaking; if it goes out, you just call the landlord, and they come fix or replace it. As a homeowner, you’ll be responsible for everything on the property. You’ll want to save about 1% of your home’s value each year to have enough money to make repairs when they come up.
5. Not consulting with a real estate agent. Speak with an agent before you start looking at homes. The right agent will be able to educate you about the process. We have all types of contacts to ensure you get all the information you need to make the best decisions for your family.
If you have questions or need anything at all, please reach out via phone or email. We would love to help you.