7 Mistakes To Avoid When Buying Your First Home
Buying your first home is thrilling, overwhelming, nerve-wracking, and terribly exciting, all at the same time. Sometimes it can seem like you're faced with one insurmountable obstacle after another, but if you stick with it, everything will fall into place in time. Having an experienced real estate agent at the Lake of the Ozarks to guide you through the process is an invaluable resource. This week, I am uncovering some of the common mistakes first-time buyers make and how you can avoid them when it's your turn.
Mistake #1: Forgetting To Think Ahead
If you are considering buying a house, you probably plan to live in your new home for several years. As a result, it is imperative that you think ahead and evaluate how well your chosen home will be able to serve you in the coming years. Are there good schools and playgrounds nearby in case you have kids? Is there access to quality healthcare for aging family members? Even if you only plan to live in your new home for a few years, it is still important to consider all the possibilities. As you think forward, don't forget to consider your home's resale value.
Mistake #2: Not Having All Your Paperwork In Order
There is a lot of paperwork involved in buying a home. In addition to all of your lender's and real estate agent's paperwork, you will be required to supply certain important documents as you apply for a mortgage loan. Examples of documents you may be required to produce include bank statements, W-2s, federal tax returns, and pay stubs. Failure to supply these documents in a timely fashion may make it difficult (or even impossible) to get approved for a home loan.
Mistake #3: Not Taking Notes
Think you'll remember all the details of every home you look at and which characteristics (such as the spiral staircase or wood-burning fireplace) belong to which house? You may need to think again. After touring even as few as 4-5 different properties, they may start to blur together in your memory. Your real estate agent should provide you with printed copies of the MLS sheets for every home you tour, and you should write your own notes on them to remind yourselves which characteristics each property possessed.
Mistake #4: Getting Too Attached Too Quickly
In a perfect world, buying a home would be an easy, seamless process. Unfortunately, this isn't always the case in the real world. A variety of things can get in the way of a sale. The title search or home inspection could reveal undesirable information, for example, or the sellers could choose to accept a different buyer's offer instead of yours. Because it is impossible to predict how your experience will go, it is important to avoid getting too emotionally attached to any given home too soon. This is easier said than done, of course, but it may help you avoid heartbreak if the sale does not go through for any reason.
Mistake #5: Not Getting Preapproved Before Beginning The Home Search
Inexperienced homebuyers often begin the process of buying a house at the Lake of the Ozarks by searching for homes online. Once they find a few homes they want to tour in person, they will probably contact a real estate agent to take them through the home. They may forget (or simply not realize) that they should always talk to a lender and get preapproved (or at the very least, prequalified) before actively beginning the home search. Things tend to progress quickly once a home has been found, and it's important to be prepared. Being preapproved will show the sellers you are serious, which will make them more likely to accept your offer. If there are other buyers in the mix, it may give you a leg up over your competition.
Mistake #6: Forgetting To Factor In The Other Expenses
Financially speaking, there is more that goes into buying and owning a home than simply making your mortgage payments. In order to buy a house, you will most likely have to cover several other upfront costs, such as the appraisal, inspection, earnest money, title insurance, lender's fees, and other closing costs. Once the home is officially yours, you will have to cover the other costs of homeownership such as home insurance, real estate tax, utilities, and any necessary repairs. Though it is true that renting is often cheaper than owning, it is important to be realistic about the other expenses you will have to cover.
Mistake #7: Taking Out New Lines Of Credit Before The Deal Is Closed
Being approved for a mortgage loan is a very in-depth (and sometimes rather delicate) process. You're probably asking for at least a hundred thousand dollars, possibly even several hundred thousand. Most banks will not approve a loan for such a great amount without carefully evaluating all aspects of your financial situation to determine whether or not you are a safe risk. Once you have submitted your mortgage application, it is important that you not do anything to rock your financial boat. Avoid taking out any new lines of credit, and possibly not even paying off outstanding debts, without consulting your lender first.
Buying Your First Home? Contact Me For Help!
I have a great deal of experience working with first-time homebuyers, and I would love the opportunity to help you buy your first home at the Lake of the Ozarks. To learn more about how I may be able to help you, check out my website at www.DanSellsTheLake.com.
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Mistake #1: Forgetting To Think Ahead
If you are considering buying a house, you probably plan to live in your new home for several years. As a result, it is imperative that you think ahead and evaluate how well your chosen home will be able to serve you in the coming years. Are there good schools and playgrounds nearby in case you have kids? Is there access to quality healthcare for aging family members? Even if you only plan to live in your new home for a few years, it is still important to consider all the possibilities. As you think forward, don't forget to consider your home's resale value.
Mistake #2: Not Having All Your Paperwork In Order
There is a lot of paperwork involved in buying a home. In addition to all of your lender's and real estate agent's paperwork, you will be required to supply certain important documents as you apply for a mortgage loan. Examples of documents you may be required to produce include bank statements, W-2s, federal tax returns, and pay stubs. Failure to supply these documents in a timely fashion may make it difficult (or even impossible) to get approved for a home loan.
Mistake #3: Not Taking Notes
Think you'll remember all the details of every home you look at and which characteristics (such as the spiral staircase or wood-burning fireplace) belong to which house? You may need to think again. After touring even as few as 4-5 different properties, they may start to blur together in your memory. Your real estate agent should provide you with printed copies of the MLS sheets for every home you tour, and you should write your own notes on them to remind yourselves which characteristics each property possessed.
Mistake #4: Getting Too Attached Too Quickly
Mistake #5: Not Getting Preapproved Before Beginning The Home Search
Inexperienced homebuyers often begin the process of buying a house at the Lake of the Ozarks by searching for homes online. Once they find a few homes they want to tour in person, they will probably contact a real estate agent to take them through the home. They may forget (or simply not realize) that they should always talk to a lender and get preapproved (or at the very least, prequalified) before actively beginning the home search. Things tend to progress quickly once a home has been found, and it's important to be prepared. Being preapproved will show the sellers you are serious, which will make them more likely to accept your offer. If there are other buyers in the mix, it may give you a leg up over your competition.
Mistake #6: Forgetting To Factor In The Other Expenses
Financially speaking, there is more that goes into buying and owning a home than simply making your mortgage payments. In order to buy a house, you will most likely have to cover several other upfront costs, such as the appraisal, inspection, earnest money, title insurance, lender's fees, and other closing costs. Once the home is officially yours, you will have to cover the other costs of homeownership such as home insurance, real estate tax, utilities, and any necessary repairs. Though it is true that renting is often cheaper than owning, it is important to be realistic about the other expenses you will have to cover.
Mistake #7: Taking Out New Lines Of Credit Before The Deal Is Closed
Being approved for a mortgage loan is a very in-depth (and sometimes rather delicate) process. You're probably asking for at least a hundred thousand dollars, possibly even several hundred thousand. Most banks will not approve a loan for such a great amount without carefully evaluating all aspects of your financial situation to determine whether or not you are a safe risk. Once you have submitted your mortgage application, it is important that you not do anything to rock your financial boat. Avoid taking out any new lines of credit, and possibly not even paying off outstanding debts, without consulting your lender first.
Buying Your First Home? Contact Me For Help!
I have a great deal of experience working with first-time homebuyers, and I would love the opportunity to help you buy your first home at the Lake of the Ozarks. To learn more about how I may be able to help you, check out my website at www.DanSellsTheLake.com.
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