5 Mistakes First-time Homebuyers Make
5 Mistakes First-time Home Buyers Make
1) Not Getting Pre-Qualified/Pre-Approved
Getting pre-approved shows sellers that you’re a serious buyer. Failing to do so before you begin house hunting is a waste of time because you don’t know how much you can afford. Be sure to get at least a couple different quotes to make sure you’re getting the best rate. Our company can help qualify you. It’s better to buy now and refinance later when interest rates drop. As they say,
“Date the rate. Marry the property.”
2) Not Working with an Professional Real Estate Agent
Working with a great Realtor who knows the market will help save you time and stress. Experienced Realtors know how to make their offers stand out and negotiate things including price, repairs, and contingencies to get you the best deal. Our Realtors know the current market trends and how to get your offer accepted amidst the most competitive market in history. If you decide to represent yourself it may be a very long time before you get an accepted offer and move into your dream home.
3) Waiting to Take Action
“Don’t wait to buy real estate. Buy real estate and wait.”
The biggest thing I hear from people is that they wish they had bought real estate sooner. If you look at history, real estate generally appreciates upwards. And considering the state of the current real estate market, it doesn’t look like prices will be coming down in California anytime soon. Get in now while you can. The right time to buy real estate is when you are ready, willing, and able.
4) Being too Picky
With low inventory in today’s market, we are still in a seller’s market. Not being able to see a home beyond its current condition leaves you with little options. Ask yourself, what are you willing to sacrifice? Price, size, location, etc? You can always change cosmetic features in a property, so choose to see the potential of a property. Your first property likely won’t be your dream home, but it’s the quickest way to get into your dream home. We’re always here to help you make improvements later on down the line and add value to your home.
5) Not Saving Enough for a Down-Payment
Purchasing a home is often the biggest purchase of your life. Be sure to have enough reserves saved up not only for the down payment, but also any unexpected maintenance expenses you may incur as a new homeowner. Additionally, be sure to hold back on making any large purchases like cars or other luxuries, as this can greatly impact your purchase power. Remember that what you can qualify for is not only based upon your credit score and income, but also your debt-to-income ratio. Also, a lot of people forget about closing costs and are shocked once closing escrow. We recommend having at least an additional 1-3% saved for closing costs, plus 3 months of reserves for your mortgage.
1) Not Getting Pre-Qualified/Pre-Approved
Getting pre-approved shows sellers that you’re a serious buyer. Failing to do so before you begin house hunting is a waste of time because you don’t know how much you can afford. Be sure to get at least a couple different quotes to make sure you’re getting the best rate. Our company can help qualify you. It’s better to buy now and refinance later when interest rates drop. As they say,
“Date the rate. Marry the property.”
2) Not Working with a Professional Real Estate Agent
Working with a great Realtor who knows the market will help save you time and stress. Experienced Realtors know how to make their offers stand out and negotiate things including price, repairs, and contingencies to get you the best deal. Our Realtors know the current market trends and how to get your offer accepted amidst the most competitive market in history. If you decide to represent yourself it may be a very long time before you get an accepted offer and move into your dream home.
3) Waiting to Take Action
“Don’t wait to buy real estate. Buy real estate and wait.”
The biggest thing I hear from people is that they wish they had bought real estate sooner. If you look at history, real estate generally appreciates upwards. And considering the state of the current real estate market, it doesn’t look like prices will be coming down in California anytime soon. Get in now while you can. The right time to buy real estate is when you are ready, willing, and able.
4) Being too Picky
With low inventory in today’s market, we are still in a seller’s market. Not being able to see a home beyond its current condition leaves you with little options. Ask yourself, what are you willing to sacrifice? Price, size, location, etc? You can always change cosmetic features in a property, so choose to see the potential of a property. Your first property likely won’t be your dream home, but it’s the quickest way to get into your dream home. We’re always here to help you make improvements later on down the line and add value to your home.
5) Not Saving Enough for a Down-Payment
Purchasing a home is often the biggest purchase of your life. Be sure to have enough reserves saved up not only for the down payment, but also any unexpected maintenance expenses you may incur as a new homeowner. Additionally, be sure to hold back on making any large purchases like cars or other luxuries, as this can greatly impact your purchase power. Remember that what you can qualify for is not only based upon your credit score and income, but also your debt-to-income ratio. Also, a lot of people forget about closing costs and are shocked once closing escrow. We recommend having at least an additional 1-3% saved for closing costs, plus 3 months of reserves for your mortgage.