If you are getting ready to purchase your first home, you will be going through a big learning process. As you go through the process of purchasing your first home, there are some classic first-time homebuyer mistakes you are going to want to avoid making. Avoiding these mistakes will make the home buying process easier.
Mistake #1: Only Consulting with One Lender
When you are ready to purchase a home, you will want to talk to more than one lender. You will want to get offers from at least two to three lenders. This will allow you to compare the rates and quotes that you are offered.
When you get the quotes, you are going to want to look at the loan terms, lender fees, and rates. You will also want to consider the customer service and access that you have to assist with your mortgage. You are going to have a relationship with your lender for years, and the terms of the loan will impact what you actually end up paying for the home, so be sure that both are fair to you.
Mistake #2: Know Your Real Budget
Second, when you get approved by a lender, they will let you know how much money they are willing to lend you. That is not your budget; that is what they are willing to lend you. You need to sit down and assess your job security and expenses, including other loans, and figure out how much you can comfortably spend on a loan and afford to make with a monthly loan payment.
You want your loan payment to be something you can easily afford, and that will not stress you out. You don't want to purchase a home that is beyond your budget and end up getting foreclosed on. You can avoid that by setting your budget for yourself.
Mistake #3: Not Knowing What is Important to You
Third, when you start to look at homes, you need to consider what is essential. Just because hardwood floors are popular doesn't mean you care about when you look at houses. What you care about and need for a home will be personal to your lifestyle. Maybe you want a home that allows you access to public transportation. Or perhaps you want a home that is out in the country and really quiet. Maybe you need space for a home office. Figure out what you need from home, not what is trendy, so that you can narrow your search and find a home that you can be comfortable with for the next decade.
Mistake #4: Not Hiring a Real Estate Agent
It is true that it is easier than ever to look at homes for sale with the internet. However, that doesn't mean you should cut out the real estate agent. A real estate agent will be able to tell you about properties before they hit public listings. They will be able to arrange showings or let you know if they have already looked at a property in person and if they think it will fit your needs. They can assist you with the complex process of actually buying a home.
When it comes to purchasing your first home, shop around to find a lender with terms that work for you. Know what your real budget is and stick to it. Take the time to figure out what you value and need in a home, and work with a real estate agent to find that home.
For more information on homes for sale, contact a professional near you.