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Common Mistakes Most Homebuyers Make

Sunday, April 21, 2024   /   by Teresa Pileggi

Common Mistakes Most Homebuyers Make

Common Mistakes Most Homebuyers Make

Buying your first home can be overwhelming. From researching the best neighborhood to completing the mortgage preapproval, the process can leave you exhausted. But considering the joy of owning your first home, it is worth it to understand all the pitfalls surrounding the home-buying process and learn how to avoid them.

So, are you ready to start your homeownership process?
Here are the common mistakes you should avoid to achieve your real estate dream. Some mistakes may be acceptable. However, overlooking them can lead you to financial burdens and slow your process along
the way.

First-Time Home Buying Mistakes to Avoid

Do you want to have a smooth home-buying process with no bumps? Here are the top mistakes you should avoid to get your dream home.

1. Skipping The Preapproval Step

Owning your first home is a lifetime goal you cannot wait to achieve. However, jumping into the excitement without checking your finances can land you in a costly house you cannot afford. That is why starting with the preapproval step is crucial to determine if the house matches your budget. You may have enough money or credit access to purchase a home in any neighborhood. However, you will be shocked when you realize there is more to buying a home than getting an affordable house on the market.

Therefore, getting preapproved comes with numerous benefits that streamline your home-buying process, including;
? It gives you a reliable price range to stick to during your home hunting.

? It makes you appear serious to home sellers. That is because most sellers are more likely to consider buyers with financial backing than those without.

2. Working With Only One Mortgage Rate Quote

As a first-time homebuyer, you will likely work with the first lender you talk to. Other buyers also believe getting quotes from different lenders is time-consuming and prefer working with the readily available mortgage facility. While this is true in some cases, failing to compare different mortgage quotes is potentially dangerous as you are likely to leave other
affordable offers out.
To avoid this costly mistake, always take time to shop around and talk to different lenders to get a better and lowest deal. You can use the following tactics to get the lowest mortgage rate:
? Compare at least three different lenders and mortgage brokers on the same day. That is because mortgage rates change regularly, and you must stay updated.
? Always look at mortgage rates, lender fees, and loan terms to see what matches your needs.
? Don’t overlook customer service and lender responsiveness; they all determine your mortgage approval speed.

3. Buying Without a Real Estate Agent

Yes, you can buy a home without a real estate agent, especially if you have a tight budget or want to bypass all the legal hurdles that come with home buying. However, working with a reputable real estate agent saves you a lot of anxiety. It gives you access to the best properties before they reach the market.

Working with real estate agents is also beneficial in many ways. These include.

? They will give you personalized advice on how to start your home-buying process.
? They will provide valuable insights into the best neighbourhoods, mortgage rate quotes to take depending on your qualifications, and instructions on making your first offer.

4. Buying Based on Emotions

Purchasing a new home is emotional in itself. But it would help to never let your emotions overshadow your financial decisions and long-term investment goals. As you plan to create memories in your new place, always be careful not to make impulsive decisions that might affect your finances. Getting emotionally attached to the home can impact your purchase significantly. Besides leading you to overpay for the house, you may need to pay attention to minor fixes like malfunctioning water or lighting systems that will cost you once you move in. Therefore, keep your emotions out of the way, and always have someone to check and correct you when you make fast decisions.

5. Not Saving Enough Money for Other Hidden Costs

Most first-time homebuyers focus on down payment and monthly loan payments when kickstarting their purchase process. They forget that getting the best home is beyond the visible costs in the seller-buyer agreement and mortgage loan terms.

Therefore, when preparing to buy your first home, always save enough money for the following extra expenses:
? Home insurance that covers any damage to your home and all the assets attached to it.
? Moving costs, whether you plan to use professional moving services or utilize your immediate options.

? Homeowners Association (HOA) fees. Some neighborhoods require you to pay HOA fees, which cover neighbourhood maintenance costs like landscaping and garbage collection.
? Utility costs vary based on location and the size of the home.
? Property taxes are valued based on the neighbourhood, local and federal laws, and your home size.
? Home repair and maintenance costs. You may also incur more costs repairing your new home and keeping it up to date.

The Bottom Line
First-time home buying is a fulfilling and stressful journey, especially if you do not know what to expect. As one of the significant financial commitments, you are likely to skip some vital steps and move fast to make an offer. To ensure you have a smooth process and land on the best property, always start by checking all the possible mistakes that first-
time homebuyers make and learn to avoid them. You can also talk to real estate professionals and other experienced investors to learn and copy from them.
Pileggi Real Estate Team - eXp Realty
Tom Pileggi, Broker
P.O. Box 1665
Holland Landing, ON L9N 1P2
416-917-6566

Information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS®. Copyright 2024 Last Updated May 23, 2024
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