home buying tips

Four First Time Home Buying Mistakes To Avoid

Now is a good time for first-time house hunters to prepare for the spring homebuying season.

If you’re a novice to the market, you might want to hear from experts on the biggest mistakes first-time homebuyers make. According to Corey Burr, a senior vice president at TTR Sotheby’s International Realty in Chevy Chase, Maryland, here are four mistakes you’ll want to avoid:

1. Not contacting a lender until you’ve found the property of your dreams:

Without contacting a lender in advance of shopping, buyers don’t know the range of loan programs available, the down payment requirements, the terms of varying loan programs, the payment of private mortgage insurance (or not) and the timing involved in acquiring a loan. To avoid this mistake, consult several lenders to learn more about loan programs and your qualifications and get preapproved so that there is certainty about the price range you can afford.

2. Being clueless about the amount of money needed to buy a property

Many first-time homebuyers forget that they need to cover closing costs, not just the down payment. Closing costs typically add 2 to 4 percent of the sales price to the total upfront cost of a purchase.

3. Buying a house that’s too expensive

Many first-time buyers fall in love with a property and decide to buy — even if it’s a stretch financially. Sure, they might qualify for the mortgage, but if they then become house-poor from the mortgage payment, property taxes, home insurance and upkeep, it can lead to a serious lifestyle bind.

4. Not saving enough money before the purchase

Being able to afford the down payment and monthly mortgage payment is one thing; unanticipated big repairs — a leaky roof, broken furnace, etc. — inevitably happen. Many first-time buyers haven’t budgeted for any additional home maintenance costs.

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When to walk away: Red flags in the home buying process

Growing up in Tarrant County and later moving to Dallas County, Heath is well versed in the Dallas-Fort Worth Metroplex. After graduating from Southwest Texas State University, and then receiving his MBA, he wasn’t fulling his passion of remodeling houses and finding the next person to call it home. After remodeling a few house on his own, he decided to take it to the next level and help others find their dream homes to accomplish their goal of calling it home. “I really want to be the Real Estate Professional that remembers the agony of waiting to hear back from buyers or sellers on a sale and ensure communication is fulfilled along the way, the waiting can be torture when you are excited for your next buy or sell”. Dedication, professionalism and the “can do attitude” are all the traits you will find in Heath.

One Comment

  • Richard Davis

    I agree it is really important to analyze your finances and get pre-approved before you start house hunting to avoid making bad decisions. Great blog. Keep sharing!

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