Common Mistakes First-Time Home Buyers Make

While there is a first time for everything, you don’t have to buy your first house blindly. This is a big stepping stone in life! Buying your first home is a huge deal and you want to be as prepared and educated as possible when the time comes. Without proper research and preparation, you could be setting yourself up for more stress and financial setbacks later on down the road. So, what does our Augusta real estate team tell first-time home buyers to watch out for?

Here are our top five mistakes to avoid when buying your first home.

Not Getting Pre-Approved Before Starting the Search

Firstly, we advise that first time home buyers get pre-approved for a mortgage before they start house hunting. Why? You don’t want to fall in love with a home that you won’t be able to afford!

To get preapproved for a mortgage, a mortgage lender will look at your credit history, current income, assets, debts, and more. If everything looks good, they will preapprove you for a certain amount per month. This way, you will be able to narrow down the price range of homes you are looking at. Then, you can be able to confidently put in an offer when you find the house you love. Real estate agents and sellers will also take you more seriously when you are preapproved!

Once you get an idea of how much your mortgage will be, there are some other costs to consider, though.

Underestimating the True Cost of Buying a Home

Many first time home buyers only mentally prepare themselves for the down payment. While your down payment may not actually be as much as you think it will be, there are still many other costs you need to prepare for. You also need to have some cash set aside for earnest money, closing costs, home inspections, and moving costs.

You also want to ensure that you aren’t draining your savings account. Using all of the money that you have saved up to get into your home but then not having any ’emergency savings’ afterwards is known as being “house poor.” You really have to anticipate the worst. What if one month after you move in, you need a new furnace or hot water heater? What if a storm comes through and wrecks your roof or siding?

No matter how excited you feel, take a step back and ensure you are financially prepared before buying your first home.

Letting Emotions Drive Your Decision

Browsing through listings and touring homes can bring through a lot of emotion. The eagerness and happiness in your chest as you picture how you want to decorate your future home can oftentimes send you in the wrong direction. Heavy emotions can lead you to not looking at things from all angles. You may agree to more than you can handle just because you are in love with a home’s specific features.

In reality, you may have to settle for some features that you do not like for your first home. Who knows, you may end up liking it in the end! Otherwise, the next time you move, you will know what features to look for and those to stray away from.

Skipping Research on the Property and Area

One of the next big things that we see with first-time home buyers is that they skip research on the property that has caught their eye. It’s easy to get caught up in loving a house, but what about the neighborhood as a whole? You see yourself staying in the house you’ve picked out for many years, but will you like your neighbors? What if they expand your neighborhood or put a shopping center next to it?

Also, how long is your commute time to work? Are you okay with how long it takes you to get to the nearest grocery store and back? These are all things you have to think about besides, “I can’t wait to put the couch here and paint this accent wall…”

Not Using a Real Estate Agent

Lastly, one of the biggest things that we advise first-time home buyers to do is use a real estate agent. A real estate agent that you can trust makes the home buying process a lot smoother, whether it’s your first home or your forever home. We have the resources and good, local connections to assist you in getting pre-approved to find the perfect home for your current situation.