It’s such an exciting time when it comes to purchasing your first home. You’ve saved and dreamed of this moment for a long time. We understand the feeling! However, it’s very important to avoid the common pitfalls that can befall first-time home buyers during all this excitement.
It’s very important to keep level-headed and keep the focus on the important aspects of the home-buying process. Here are the key points to keep in mind.
Assess your Finances– Before deciding to purchase a home you’ll need to thoroughly assess your finances. Just saving money for a down payment doesn’t mean you can afford to purchase a home. You need to make sure you can actually afford the monthly payment, along with all other monthly bills, new maintenance costs that come with owning a home, and an emergency fund/savings account for the what-ifs.
Set a Budget…and Stick to It– Believe me, this is so much easier said than done. In the excitement of the home-buying journey, it is easy to get caught up in buying a home that is slightly more than you can afford, buying a home and remodeling it all before moving in, or buying all your furnishings for the home upfront. Taking on more debt than you can afford can seriously wreak havoc on your finances and your financial well-being as a whole.
Not getting preapproved before looking at Homes– The easiest way to lose a home you love or get in above your head on a home that is too much for you to afford is not getting pre-approved for a loan before you start looking at homes. By getting pre-approved with a lender, you will know how much you can spend and offer on a home. A home seller will take your offer seriously knowing that you are already pre-approved for that loan amount, and you will know the home is within your budget.
Foregoing a Home Inspection– When faced with bidding wars, sometimes home buyers will waive a home inspection for their offer to be more attractive. This is not advisable. A home inspection is in place to protect you as a buyer to ensure the home is structurally sound and free of any defects in that regard that would be very costly to remedy. This could be a reason why you may not go forward in a home purchase, or negotiate further for repairs, etc. Always choose a home inspection.
Consider the Resale Value of the Home– When purchasing a home, you always want to consider what the resale value of the home will be later down the road. Many factors contribute to this, neighborhood, location on the street, homes in the neighborhood, safety, amenities, etc. You’ll also want to factor in the home amenities itself- does it have a garage? Small kitchen? The number of bathrooms? All of these things will contribute to its value down the road and the ease of resale when it comes time for you to make a future move.
Are you currently searching for your first home? Let my extensive real estate and lender experience work for you! We can set up a time to talk and put a successful plan together to ensure you find the best home to fit your budget and needs and builds on your future success.
Rob Washburn- 402-981-6999
