Buying a home — especially when it’s your first time — can be a scary but exciting experience. Some first-time home buyers might find the process’s complexity engaging and want to tackle everything head-on. For others, the process can feel challenging, directing you to a real estate agency like ours. Either way, there are a few problems and mistakes committed by first-time home buyers that, with some knowledge, you could prevent from affecting your purchase.
Whether you’re actively searching for Graduate Hospital homes for sale or seeking out one of the best realtors in your area, Hunters Real Estate can help you unpack eight of the most common first-time homebuyer mistakes.
Only Getting One Mortgage Quote
As any good realtor will tell you, buying a home for the first time is all about options. You never want to restrict yourself more than you should, especially regarding your mortgage lender. One of the biggest mistakes homeowners make is taking the first mortgage rate quote they can find and running with it. It might be a bit annoying to actively search out a new quote every time, but a few lenders might offer you better deals than the first one you receive.
Not Getting a Pre-Approval
Relying on a prequalification isn’t bad per se, especially if you truly understand how your credit score, assets, and income will influence your homebuying capabilities. With that said, the lending process can be affected by many factors, and a pre-approval can make the buying process easier while proving to sellers that you aren’t playing around with their time. A pre-approval also gives you a better understanding of how much money you can borrow, which can help narrow down your search.
Looking for a Home Before Applying for a Mortgage
It’s always good to picture your dream home, and we know homeowners probably have a few homes lined up in their favorites list, ready to be toured. Unfortunately, homeowners often make the mistake of viewing homes before even speaking to a mortgage lender. That doesn’t mean you can’t visualize a home as your own or have any options, but it does mean that you should be aware of what’s in your price range.
Because demand is so much higher than supply, sellers won’t take you seriously if you don’t show your commitment and make an effort towards the purchase. So before you go taking tours, get yourself a pre-approval ASAP.
Buying a Larger House Than You Can Afford
It’s always tempting to shoot for that beautiful home that’s right outside your budget, but the last thing you want to do is reach for something you can’t afford. A monthly mortgage payment can be extremely expensive and taxing, as getting out of a home loan means selling or moving, which are particularly difficult endeavors to pursue. The best thing to do is to ensure that your personal finances are in check and have a keen idea of what you want to afford and how that differs from what you can afford.
Getting Careless With Your Credit
During the home buying process, you don’t want to be opening new credit cards or personal loans. Mortgage lenders will pull your account to ensure that things are in order, and it’s important to display stability on your credit report. Many homebuyers learn this lesson the hard way, so try keeping your account standing in order instead of opening new accounts. If your credit card balance is above 30%, pay it down and keep your bills paid on time each month to lower your debt to income ratio.
Making Quick Decisions
When things get tough, homebuyers often feel like rushing through the process and just getting things over with. Making quick decisions seldom goes right, and going slow and steady gives you the ability to outline your options as clearly as possible. Remember, a home is something you’ll likely be in for the rest of your life, or at the very least, for an extended period. Why rush and hamstring yourself with a decision that you’re uncomfortable with?
Waiting for the Perfect Home
The perfect home doesn’t exist, and you shouldn’t expect it to. Homeowners searching for the perfect home often regret a purchase or miss out on perfectly good choices in the hopes that the grass is greener somewhere else. Don’t sell yourself short, but also be objective and realistic with your demands and goals. The perfect home won’t be out there, but with a few tweaks, you can find the property that best suits you and your family.
Working Without an Industry Leading Realtor
The home buying process isn’t something to take lightly. It can be tempting in this world of information to think you can go through the process alone, but there are plenty of fine print information and context clues you’ll need to set yourself up for first-time home buying success. Without the right help, you can end up buying a house that you don’t want, or that isn’t on the best possible terms.
With a real estate agent from Hunters Real Estate, you’re guaranteed to receive affordable rates and accurate information that allows you to make the right decision for you or your family. Check out some of the best properties available today — like the homes for sale in Rittenhouse Square — and let our agent do the work for you!