If you’re a first time home buyer, it’s important to know all of the potential blind spots you can encounter in your home buying journey, from the beginning of your search to getting the keys to your new home.
Here are 10 of the most common mistakes you can make as a home buyer, and tips on how to avoid them:
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- Credit score affects your ability to get a loan, and what the interest rate will be!
NOT ENOUGH CASH
- Down payment
- Earnest money deposit
- Home inspection and appraisal
- Closing costs (or get a seller subsidy to help!)
- Cash reserves
BAD LEASE TIMING
- Know your lease! Don’t buy a home in the middle of your lease unless you know you can get out of it, or help your landlord find a replacement.
- Note: Buying a home takes about 30-60 days from contract to close
- Don’t start looking right before you have to move! From looking to closing, finding the right home can often take 3 months.
DREAM HOME OR BUST
- Your first home might not be your dream home
- Have realistic expectations for the type of home you can afford.
- Know your must-haves vs. what you can compromise on
- Pick an agent who makes you feel 100% comfortable, respects you, and never pressures you.
- Pick someone who doesn't agree with you all of the time. Good advice can mean disagreeing.
- Pick a hard worker - your agent should manage your entire sale and keep your lender and settlement company accountable.
- Not all lenders are created equal. Get rate quotes from mid-sized local lenders, not just big banks and online lenders.
- If your lender doesn’t meet your contractual deadlines, it could cost you your home.
- It’s important to know if there are any deal breaker issues
- You can negotiate repairs/cash credits with the seller
- Pick your price limit and don’t go above it just because there’s a bidding war!
- Don’t get overly emotional about any home. There will be others!
- You should NEVER feel buyer’s remorse when you buy a home.
DON’T do these things prior to closing without consulting your lender:
- make large purchases
- change careers
- get a car loan
- open a lot of new credit cards