Ever wonder what should a first time buyer look out for?
Curious about mistakes they might make or important things the might miss when buying their first house or condominium in Tooele UT?
Her are some don’ts I want to share with you to see if we can make that initial Real Estate experience not only painless, but mistake free.
This is not a list to end all lists, but just some things to keep in mind to keep you from stubbing your toes first time out.
Rookie Mistakes: Don’t Make These 4 First-time Home-buyer Mistakes
Buying your first home is exciting. Many young people view homeownership as the definitive mark of adulthood, the final milestone on a decades-long journey. And while becoming a homeowner is cause for celebration, you’ll want to ensure you keep your enthusiasm in check just a little while longer.
Keep a level head and you’ll easily avoid these common mistakes first-time buyers make.
Don’t View Your Home As An Investment
First-time buyers commonly think that they can invest everything they’ve saved into a home, fix it up, and then sell it for a large profit in a few years. However, a home is a fixed asset that is hard to sell off quickly. Economics professor Art Carden says that for people looking to start an investment, a stock or bond is a better option than a house, as “I’ve never had to call a plumber because a mutual fund started leaking.”
Don’t Skip The Home Inspection
The American Society of Home Inspectors says 10 percent of home purchases happen without an inspection. Quite simply, buyers decide it’s better to save the fee for the down payment – but often, issues arise later that can result in multi-thousand-dollar repair bills. Foundation problems can be especially nasty, sometimes requiring a tear-down.
Before signing a contract, make sure you have a licensed home inspector view the property.
Here is another instance where having the right local agent can come in handy. They will know the home inspectors that are thorough and that you can count on to council you about the importance of their findings.
Don’t Believe Everything You Read On The Internet
While it’s good to start researching neighborhoods, mortgage terms, and home valuations online, keep in mind that online estimates are just that – estimates. Not all mortgages are created equal, and the many differences between loans can result in significant changes in the overall cost. For example, just because a lender is giving you a mortgage without an origination fee, that doesn’t make it a good deal – you could be paying a lot more in interest rates.
Always make sure you thoroughly check and understand loan terms before signing anything.
Once again a Real Estate agent you can trust, that is local and does a fair amount of business can give guidance regarding mortgage options. Keep in mind your agent is not a lending specialist, but if they are an active agent they will be able to recommend 2 or 3 capable loan officers.
Don’t Go For The Most Expensive House You Can Afford
When you qualify for a mortgage, your lender will tell you the maximum home purchase price they’ll fund, based on your annual income as well as your debt-to-income ratio. However, just because you can afford a $500,000 two-story townhouse, that doesn’t necessarily make it a good idea to buy said townhouse. You’ll want to give yourself a cushion in the event that you lose your job, have children, need to pay medical expenses, or go back to school.
There you have it. A few tips about buying your first home to go with my recent blog post, “tips for a first time Tooele home-buyer”
If you are still with me and still feel like you want to step out and start looking at homes to buy, I’d love to help. Check my resume and see if we might be a fit. Then….. call me Berna Sloan 435-840-5029. I know the answer to what should a first time buyer look out for.