Becoming a first-time homebuyer is a huge step. Oftentimes, people find themselves overwhelmed with the entire process. Of course, buying your first home is a huge investment, so you want to make sure to get it right. To help you along the path to your first home, here are 5 of the most common first-time homebuyer mistakes to avoid.
Not Knowing Your Real Budget
Knowing what your budget can handle and what the bank says your budget can handle on paper are two different things. To figure out your budget, make a list. This should include your monthly expenses like:
- Vehicle Costs
- Credit Card/Student Loan Payments
- Health Insurance
- Retirement Contributions
Don’t forget to include monthly home maintenance expenses such as water and electric bills, as well as yearly expenses like premiums for insurance and annual vacations. Once you have a number, subtract your take-home pay from this, and you’ll know exactly what you should be spending each month.
Knowing what shape your prospective new home is in will keep you from spending tons on unexpected repairs. Don’t neglect to have the home professionally inspected to get a complete picture. This can prevent the first-time homebuyer from making a serious financial misstep.
Not Thinking Ahead
It’s easy to get lost in the details when buying your first home. But failing to consider additional expenses that are inevitable can lead to misfortune. Becoming a first-time homebuyer means that you will now be responsible for things like homeowner’s insurance and property taxes along with all the necessary repairs in the home. This can include expensive projects like replacing your roof or furnace.
It’s important to know the difference between what you want and what you need in your new home. For first-time homebuyers, this can be a tricky situation to navigate. You want to get the most from your new home, but it’s important to understand the power of compromise. Being inflexible could lead to missing out on that perfect home, or renting longer than anticipated.
Not Using An Agent
No matter what, you should never walk into an open house without having an agent. Real Estate agents are held to ethical standards that insist they act in the best interest of both the buyer and seller. However, it’s a best practice have your own agent before you start dealing with the seller’s agent. Your agent will know your needs and will help you negotiate the best offer.
Located in Brevard County Florida, our qualified agents are ready to help you find a great house and help you avoid any of these first-time homebuyer mistakes. Contact us today to schedule an appointment.