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Earl Anderson
Trower Realtors, Inc.
Phone: (432) 664-5042
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Common first-time homebuyer mistakes you can avoid 0 Comments Posted




A small wooden toy house, representing the most common first-time homebuyer mistakes.
Common first-time homebuyer mistakes you can avoid

Let’s face it - purchasing your own home is no easy business. There are quite a lot of factors to consider while you’re making such a decision. And on top of that, many smaller calls to make simultaneously. Once you get into the nitty-gritty of the process, it isn’t difficult to get overwhelmed and make a couple of crucial mistakes. Especially if this is your first home purchase, you’ll need to be extra careful. Don’t worry though, we’re here to help you remain vigilant during all of that. We’ve listed out some of the more common first-time homebuyer mistakes and ways to avoid them. So read on, and enjoy!
 

Bad timing

As we’ve already mentioned above, deciding to buy your own home for the first time is a pretty monumental decision. After all, this is quite a big financial commitment. And it’s not something you want to get into lightly, by any measure. While you may already know the needed steps you have to take on the road to homeownership, not completing them in the right order is one of the most common first-time homebuyer mistakes out there.

A suburban house at dusk.
Take care of your mortgage before browsing houses!

Sure, you want to relocate to your new home as soon as possible. But you don’t want to hire a moving company like Small World Moving TX before first buying your home, for example. Figuring out the right schedule for everything is pretty crucial, so make sure you think things through first. This can be especially important in regards to your financial situation.
 

Not securing a mortgage first

Speaking of common first-time homebuyer mistakes related to your finances, here’s the most crucial one: not thinking of your mortgage on time. In fact, you’d be surprised how many people start browsing homes before even thinking about their mortgage. And trust us, you don’t want to begin looking for houses before you take a meeting with a mortgage lender first. That way, you’ll know just how much money you can spend on a home; you’ll save a lot of time, effort and disappointment by not browsing homes you can’t realistically afford.

Plus, there are practical reasons for this as well. In bigger housing markets, you’ll find that the housing inventory may be tight. Especially when demand is high and the supply of available properties is low. In that situation, you’ll be facing fierce competition from other homebuyers. And in such a situation, you may prove to be willing to stretch your housing budget to obtain the desired property. Or, you may lose a property simply because you haven’t been preapproved for any mortgages. That’s why the browsing of homes comes after the mortgage if you want to follow our advice.

Make sure you get a completely underwritten preapproval before falling in love with a gorgeous home in the neighborhood of your dreams. That kind of preapproval gives sellers the signal that you’re a pretty serious buyer, whose personal finances can muster a loan successfully.
 

Only speaking with one lender

This one is crucial among the common first-time homebuyer mistakes. When you’re looking for a mortgage lender, there’s one important thing: not going with the first lender you meet. Sure, they may actually offer great rates, and it may be worth your while. But before accepting that offer and buying a home, you want to speak to a couple of other mortgage lenders first. See if you can get a better offer, and test the waters before diving in. If you don’t do this, you risk leaving a sizable sum of money on the table, for no good reason.

A calculator and a bill, next to a pen.
Speak to different lenders to get the best rates!

If you manage to find a proper mortgage loan officer, they’ll have a careful look at your situation, and be able to give you a good understanding of your options when it comes to home purchasing. Which is precisely why you want to shop around, and have a talk with at least three different officers before settling on one. Compare the different loan terms they give you, and the rates and fees. Also, make a note of how responsive they are towards their customers; this also counts for a lot.
 

Stay in your financial lane

Once you start browsing homes, one of the most common first-time homebuyer mistakes is not being realistic. As in, falling in love with a home that is realistically out of your reach. That’s why people can overextend themselves when it comes to mortgage payments; causing years of discomfort and financial issues down the line. Obviously, this is something you desperately want to avoid. But how can you make sure that you don’t become too burdened with a mortgage on a particular home?

A luxury house with a pool.
Don’t buy a home you can’t afford!

If you’re asking us, when you apply for your homebuyer’s loan, don’t just take the maximum loan that you are eligible for. Just because you can take a $300,000 mortgage doesn’t mean you actually should. Because you might not be able to afford the monthly payments that come with it. So, focus on what your monthly installments will be instead. And don’t buy more house than you can pay off, without damaging your personal finances!
 

Final Thoughts

At the end of the day, you may have already surmised what the most important factor is, when it comes to common first-time homebuyer mistakes. Primarily, you need to think through every step of the way, in advance. When it comes to purchasing real estate, you have to be absolutely certain about every single choice you make.

View Comments | Add Comment Friday, August 9, 2019  2:45:18 PM
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