First-Time Homebuyer Mistakes to Avoid
Home Shopping Without a Loan Pre-Approval
Save time and hassle by knowing exactly how much house you can afford. Online calculators and free credit report sites will not give you an accurate picture of a mortgage qualification amount, so work with a lender to get an official mortgage pre-approval. In fact, many realtors (and you do want to work with a realtor) won’t work with you unless you have a pre-approval letter, so talking to a lender should be your first step.
Working Without a Realtor or Using the Seller’s Agent
Don’t start going to open houses or inquiring about home listed online without a realtor. As a buyer, there’s no cost to work with a realtor, and they’re there to work in your best interest. A good realtor will find properties that match your specifications, give you insight on neighborhoods, and help you determine and negotiate an offer. Your best bet is to find a realtor that represents you and not the seller.
Passing on a Home Inspection
Even if you found your dream house at a price you can afford, don’t give up your right to get a home inspection. It’s a small price to pay compared to the headache and expense of unexpected repairs after your closing date. Keep your emotions in check and gain peace of mind by investing in a professional home inspection.
Being too Picky
It’s great to have a wish list, but you may have to sacrifice some features, especially when funds are limited. Remember, it’s your first home, not your final resting spot. Giving up an extra bedroom or living with dated décor is worth the investment benefits home ownership offers.
Compromising on What’s Important
Failing to recognize what’s most important to you is just as risky as being too particular. Before you shop, have a few “must haves” in mind. For example, if commute time is important to you, don’t fall in love with a home an hour away from your workplace. It’s easy to let emotions take over when looking at properties, so don’t get yourself in a situation you’ll regret later.
Avoid the above mistakes and you’ll be on the right path to your first home. Also, we cannot stress enough how important it is to work with professionals you can trust. United Home Loans is a Chicagoland leader for honest, low rate mortgages, and our programs offer new buyers everything from home ownership counseling to cost saving benefits.
Contact us below or call 708-531-8388 for a no obligation first-time homebuyer consultation and pre-approval.