First-Time Home Buyer Mistakes
Buying a home is not as simple as it may seem; there are many mistakes that can be made. When you are getting ready to buy a house, here are some common mistakes to avoid.
Not Checking your Credit or Speaking to a Lender
You may be thinking it’s time to buy your first home, but have you checked your credit score yet? Have you spoken with a lender to see if you can get a preapproval for a mortgage? Knowing where you stand in terms of buying capabilities is super important to the process of buying a house. For instance, the bank or the mortgage company says you may be able to afford a home, but you may have a different understanding of what you are comfortable paying in terms of monthly mortgage payments and what kind of price range you are looking for.
The best way to get ahead of that issue is to budget out your monthly expenses. We’re talking student loan payments, vehicle payments and insurance, credit card bills, groceries, health insurance, monthly activities that you may not want to give up—you have to know what you’re paying currently, and what you can afford to add on from the beginning. Set a budget and stick to it—that way, when you get ready to buy your first home, you know what to expect and what you are getting into financially.
Not Optimizing Your Credit Score
Want to know how to have a better interest rate and ultimately pay less in interest? Optimize your credit score! If your credit score is just average, then make waves to improve it before applying for a mortgage. We actually wrote a blog about this. Click here to learn more about how your credit affects buying a home.
Not Picking the Right Real Estate Agent
Many agents are not out there with your best interests in mind. When it comes to buying a home, you want an agent who truly represents your best interests, desires, and knows your yes’s from your no’s. You also want an agent who is well acquainted with the area and is very knowledgeable when it comes to buying and selling real estate. Some agents are just that—agents. They take on buyers and sellers as clients, but they don’t have the slightest clue about the current real estate market. You want an agent who is well informed on all aspects and very active in the business.
Want to know how to pick a top real estate agent in Wilmington NC? Click here for more information!
Not Researching the Neighborhood
You may look at a property and think to yourself “This is my dream home!” Yet, you look at the school districts and they are less than average, or your neighbors are a riot, or the neighborhood, in general, is in a less than ideal area. It’s important to do your research on not just the home, but also the neighborhood. You can always find another home that meets all your needs, but you can’t change a home that’s in the wrong neighborhood.
Before buying, consider the neighborhood’s overall value, the crime rate in the neighborhood, the school zone that it’s in, surrounding churches, and how close it is to shopping, grocery stores, etc. Factor in what’s important to you when it comes to living in specific neighborhoods.
Not Considering Your Home’s Resale Value
Usually, when you are in the process of buying a home, you are only thinking about a couple of things. Maybe you’ve been tired of apartment life and so you wanted to buy a home that you could call your own. You’ve entertained the thoughts of settling down, so you are not in the frame of mind to think about what might happen in the future. But—unexpected things happen sometimes, so you just never know!
With that being said, when you are looking to buy a home, you should consider a few things concerning your home’s resale value. If you had put your home on the market, would it be easy to sell or would it be difficult? While you’re on your search for your future home, it’s important to at least consider whether or not the home would be of interest to a future prospective buyer.
Failing to Consider Other Expenses
With a home that you are renting, your main expense is usually rent and utilities, with the occasional property management company that requires renter’s insurance to protect against accidents. With purchasing your own home, you have additional expenses on top of the monthly mortgage payment. Now, you also have property taxes and home insurance. On top of that, gone are the days when you can just call the maintenance guy to fix the problem with your AC or toilet, or the property management company to tell them of your ceiling leaking all of a sudden. As a homeowner, you are now responsible for making the calls and taking care of home repairs. Additionally, many townhomes and condos also have an HOA management company with its own charges for grounds upkeep and amenities, depending on the company.
Not Opting for a Home Inspection
So you’ve walked into what you are hoping to be your future home and you’ve checked everything out. Everything looks great, right? Not always. While everything may look great on the outside (and the inside), you might not see the things that inspectors see in terms of the more nitty-gritty details of a property. So, it’s always wise to schedule a home inspection and be sure that there is nothing that is overly awry with the property—this way you can go into closing on the home with the knowledge that you are not walking into a money pit or something that’s going to take a lot of work. Granted, you may love the property so much that it doesn’t quite matter, but it’s still wise to know what you’re getting yourself into.
Not Being Willing to Compromise or Compromising Too Much
In order to get the home you can afford, sometimes there are things you have to compromise on. You might not like little details to a home, but are they able to be updated at a future date? If the home is in a nice area, is the size you want, and is at a manageable price, then compromising on things that ultimately can be replaced might not be a bad idea. Don’t like the wallpaper? Easily fixable.
At the same time, however, don’t compromise on the big things—if you have your heart set on a 3 bedroom home because you know you are eventually going to want to have kids, then that should be non-negotiable. Know your yes’s and no’s and relay that to your top real estate agent so they can help you with picking the perfect home—for you.
We Can Help!
Are you looking for the best real estate agency in Wilmington, NC? When choosing a real estate agent, be sure to go with someone who has expert knowledge of listings and selling a property. The Regina Drury Real Estate Group has that and more. We are a Full-Time real estate company in Wilmington, NC; our crew can provide you with all of our expert knowledge and focus on maintaining a high degree of customer service that will leave a lasting impression. Contact us today to talk more about your Wilmington, NC Real Estate needs.
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