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First Time Home Buyer Mistakes to Avoid
Not creating a home-buying plan
First time home buyers typically focus on two things, finding the house they want and whether they have the down payment. But coming up with the down payment and being able to actually buy the house you want are much easier if you've planned ahead.
Unless it's an emergency, plan your move at least a year ahead.
Create a plan to save the down payment and enough to cover hidden costs within your designated time frame. It could be one year, two years, or five years. Ideally, you should take time to save for the down payment, the hidden costs, and have some savings left to be financially secure after buying the home.
Learn about the various steps you need to complete before even looking at a home. One of the most frequent mistakes first time home buyers make is to look for the home before applying for their mortgage or completing other tasks that should be done first. If you've already found the home but everything else isn't ready, someone else may move in before you can do these things.
Not shopping around
With that year you've given yourself, you have time to explore all your options. Don't feel you have to stick to the first mortgage lender. It's best to speak to at least three and then compare their offerings.
Making less than practical home choices
Yes, it's exciting to see a large home, one with spa features, or one in a style you've always dreamed of, but if you can't afford it, you'll only be more heartbroken when it causes you financial distress and/or you have to sell it to make ends meet.
Always keep your budget in mind, the monthly payments, hidden costs, maintenance costs, and cost of living in the area to determine if you can really afford the home.
Do try to find as much of a happy medium between your dream home and what you can afford as you can. You might get a smaller home you can afford and add on a room or open up the space with remodeling. Or a home might easily be upgraded to have some of the spa features you'd like. Some may even come with a few spa features even if there isn't a giant fully decked out bathroom.
Not giving enough consideration to the location
First time home buyers think about the house they're going to buy and all the exciting options and daunting considerations that go with that. But the neighborhood can make living in an otherwise dream home a nightmare and it will lower your home's value.
The town or city and the location within the town make a big difference also. What if you can't buy groceries that fit your diet buy in a small town or hot spots you want to visit in the city are on the other side of the city and you have to brave nerve-wracking traffic to get to it?
Written by Missy Banks of AgentBecky.com and Allen Tate Realtors. Missy is a full time real estate professional and a top relator with Allen Tate and the Charlotte area. AgentBecky.com is a user friendly real estate search tool with update MLS listings.
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