First Time Home Buyer Mistakes To Avoid

Dated: June 22 2014

Views: 3077

1. Not understanding what you need and what you want. Prioritize  your basic needs versus what you want and can afford. This will be your first home and most likely not your dream home. It may even need a bit of work to make it your first home! Consider this when making that first purchase: price range (YOUR affordability), size of the house, will you be starting a family will is serve your needs for the next 5 to 7 years? Location, consider the school system and possibly the development.
2. Know what you can afford before starting the home search!!! This is so important, no need to waste your precious time looking at homes and you cannot afford them. Go to your local bank or mortgage company and take the next steps of getting pre qualified, this will certainly guide you in the price range that you can seriously afford. Shop lender's once you find a home to get the most competitive rate for your loan.
3. There is a difference between pre approval and pre qualified. The pre approval states you called the lender pulled your credit and based on the information you gave them you are pre-approval for that amount. Pre qualified means you took it a step further and gave the lender supporting documentation and it has been verified that you what you stated up front is true and correct. Once you find a home the process will move along quite quickly as you have already supplied documentation up front. This is very strong if you make an offer, what is if there is more than one offer? You want to be as strong of a buyer as possible to win the bid.
4. Maybe you are renting, if so the costs of home ownership can be quite different. When something breaks you no longer call the land lord, you have home owner's insurance, taxes and possibly HOA dues. Be sure to factor in the costs that will be  your sole responsibility.
5. A beautifully staged home... be sure your agent still does the comparables to put in the correct offer. You don't want to over pay because a home looks so great. Although, the best kept home will merit a bit higher price than a home not kept so well. It will typically have all aspects of the home maintenance up to date.
6. Know your time line for staying in this home. Will you be there long enough to make a profit? If not, you may want to wait a bit and buy when you have enough buying power to get a more expensive home.
7. Home Inspection..... touring a home and having an inspection are two different animals!!! The inspection gets up close and personal with the homes, mechanical, structural, plumbing, etc. It's necessary to get the inspection! It may cost $ 500, but will worth it if the home is not what you thought it was.
8. Understanding the contract..... sit down with your agent have them go over the contract line by line. This is your first time remember??? Hire an attorney to review your contract once in attorney review and close the deal with you. It's worth the money.
9. Chose the right agent, if you're not happy with an agent, then by all means find one that fits  your style, gives you the customer service you need and should have, especially buying your first home.
10.0 Go into Buyer Agency with your agent.... OK what is that??? It is an agent that represent's only the buyer's interest ....YOURS!!! It is contract between the buyer and the buyer's agent that states they work on your behalf and will give you all the comparables needed to make a fair offer on the home that you wish to purchase. There is no cost to buyer agency... at least if you work with me. I will also let you know if a buyer does buy a home listed by that specific agent or their agency, then dual agency will exist. In that case, fiduciary duty is used so both parties are treated fairly; meaning whatever the buyer tells me does not go back to the seller and vice versa.

Let the first time home buyer process be a great experience for you. Call me and I can help. Reach Pam at 609-433-0418 or e mail me a pcamiscioni@vandykgroup.com
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Pamela Camiscioni

Pam’s a residential agent for over 20 years servicing clients from first timers to retirees covering all aspects of the residential real estate spectrum from listing your home to finalizing your new....

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