Three common mistakes to avoid for first-time buyers

Are you thinking of purchasing your first property? As a first-time homebuyer, looking for your very first place is as exciting as it gets, especially when the time is right to move onward with life.

Through all the excitement, however, there are some mistakes that some first-time buyers make every now and then. You’ll want to avoid the most common three listed below.

1. Not knowing your budget

One of the most common mistakes made by first-time buyers is not fully understanding how much money they need to make it happen.

There are many expenses involved in a home purchase. This includes one-time fees like a down payment, as well as recurring monthly, quarterly and annual fees such as utilities, seasonal maintenance and property tax.

There are also start-up costs such as lawyer fees, land or property inspection fees, condominium document review (if applicable) and moving costs, to name a few. This is where a budget is essential in understanding how much money you have and can spend on a first-time home purchase.

2. Not getting a mortgage pre-approval

Another common mistake made by first-time buyers is they don’t get pre-approved for a mortgage.

Sometimes there may be discrepancies between what you think you can afford and what a lender will let you borrow. There also might be something erroneous on your credit report, which you’ll want to deal with in advance.

At the end of the day, you must know how much the bank will approve you for, then you can decide on how much to spend.

The last thing you want is to find a home on the market that you really like, only to learn that you are not able to make a move on it because you don’t have the required mortgage to do so. This way, there’s a gauge as to what price ranges you can browse while on the hunt, which will make the process more time efficient.

3. Starting without professional representation

Don’t even think about beginning this journey alone. Contact an experienced realtor who knows your community and product type well.

Licensed realtors often work in the industry full-time. That means they have more knowledge and experience and can give you the best advice, helping you to avoid common mistakes made by many first-time homebuyers.

Do your due diligence and hire a realtor before starting the first-time homebuying process. You’ll be happy you did.

I wish you all the best in your first-time home purchase. Happy house hunting!

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