Top 10 Mistakes First-Time Home Buyers Make!

Posted by on Tuesday, August 15th, 2017 at 3:45pm.

Buying your first home is really exciting … but also a little terrifying. It’s not a choice you want to get wrong. Here are some of the worst mistakes home buyers can make and how to avoid them!

1. Looking for the home yourself

You might be amazing at searching sites like Trulia and Zillow for potential homes, but what you probably don’t know is sometimes that information is totally incorrect. So you can find a home you love at the price you need, and once you contact someone about it, you might find that it’s an old listing that has already been sold, has an incorrect price, etc. Yikes! A Realtor will have access to your entire area’s MLS (Multiple Listing Services) which will have every home for sale in the market and its current data and availability. Another advantage to looking for a Realtor before you start your house hunt is that they will also have access to homes (through word of mouth from other Realtors) that aren’t even on the market yet! Regardless, this is a process you don’t want to do alone. A Realtor can save you a lot of time, energy and money throughout your home buying journey.

2. Making big financial changes before buying

If you’re planning on buying a home, this is not the time to make other big life changes! Don’t quit and start a new job, buy a car or open a new credit card. These changes to your financial situation make a difference in whether or not you can quality for a home loan. The mortgage company will want a record of consistent paychecks and payments on things you owe. They’ll also want to know if you have any big outstanding debts … like that new car we were just talking about. Don’t chance it and have to wait to find your dream home!

3. Not getting pre-approved for a mortgage loan

Most Realtors require a pre-approval letter from a mortgage company before they will even show you homes. It’s not to make your life difficult; it’s totally the opposite. Maybe your Realtor shows you a ton of homes before you find one you love, then once you go through the pre-approval process, you learn that you can’t afford that home at all! The pre-approval will give you a solid budget of what you can afford based on what your house payment will be. That should always be the first step in the home buying process in order to save you from falling in love with something you just can’t have.

4. Going directly to the listing agent

This is such an easy mistake that so many first time home-buyers make. You see a sign in front of a home you’re interested in, so you call that real estate agent listed there and ask to see the home. No problem, right? Wrong. What most home buyers don’t realize is that the listing agent for the home you love is working for the people selling the home. That may seem obvious, but the part that is easy to overlook is that the listing agent is serving them FIRST and you SECOND. Their loyalties will be first with the seller, so they will not be negotiating on your behalf like your own Realtor would. If you see a home you’re interested in, research an experienced local Realtor and reach out to them to see the home.

5. Getting too emotionally attached

There are a lot of moving pieces when it comes to the home buying process, which means there are a lot of ways in which it can go wrong. It’s easy to get your heart wrapped up in the idea of one particular home. A home is not something you want to make a purely emotional decision about. You also don’t want to be devastated if something happens and you have to move on. Be careful to go through the process with a bit of separation just in case it doesn’t work out.

6. Not saving enough money

This is a big one. If you have saved enough for a down payment, great job! But you do have other costs to consider outside of that. If you’ve been renting, it’s easy to miscalculate the cost and number of expenses that come with being a homeowner. Your utilities will be more expensive, plus there are other expenses to consider such as insurance, property taxes, maintenance and the initial cost of decorating and furnishing.

7. Buying in the wrong area

Don’t forget that when you buy a home, you’re buying its location as well. If you’re unfamiliar with the area, you’ll need to do your research to make sure it’s a good fit for you. How long will you have to commute to work? Are there good schools in the area? What is the street like at night? Do you feel safe there? Be sure to do your homework, and also consider just door knocking the neighbors to get a feel for the area and what living next to them will be like. Often people who live there can give you candid information that you may not get otherwise — like the house down the street that blasts music all night or if there was a series of break-ins in the neighborhood. They can also tell you what they love about the area to further solidify your decision.

8. Buying more home than you can afford

Have you ever heard of the term “house poor”? This is when a person spends a large portion of his or her total income on home ownership, including mortgage payments, property taxes, maintenance and utilities. If you are looking at homes that will stretch your budget to the max, you’re putting yourself in a really dangerous financial situation.You never know when something big will happen financially like getting laid off from a job, having car trouble or an unexpected injury that comes with medical bills. If your budget is stretched thin already and all of your income is going to your house payment, you’ll be up a creek in the event of an emergency. Shop what you can afford, and if you want something better, save up for that in your next home.

9. Not considering the future

Maybe the house you’re considering is just perfect for you and your spouse right now. But what about a year from now? Three years from now? If you plan on having children, will you have space for them in this home? Consider the things that will come up in your near future and make sure this home is a good fit for you, not only now, but for the next few years to come.

10. Not opting for a home inspection or using someone under qualified as an inspector

If you’re looking for a place to cut corners in the home buying process, a home inspection isn’t it. A home inspection is going to run you a couple hundred dollars, but can save you thousands upon thousands in the future. What if you buy a home with major foundation issues? Mold? Termites? You could be financially tied to a home that is (literally) falling down around you, and it can all be avoided by hiring an inspector. And on that note, although your cousin Joey is pretty handy, if he’s not a certified and experienced home inspector, he should NOT be the guy vetting your prospective new home. A certified home inspector will be fully trained to look at every nook and cranny of a home for potential issues, which can save you a lot of money and heartache in the future.