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How to Avoid the Five Biggest First Time Home Buyer Mistakes

While buying a home is without a doubt an exciting endeavor in some cases home buyers overlook things until after it's too late, creating a sense of buyer's remorse that can be time consuming and expensive to correct. By learning about the most common and biggest mistakes, other buyers have made; however, you can make sure you do not fall into an expensive trap when you set about purchasing your next home.

1. Some buyers, particularly first time home buyers, have a tendency to change their financial status prior to closing on the sale of their home. It is always important to keep in mind that just because you qualified for a mortgage several weeks ago you very well might not if you make any type of major purchase just before closing. This means you should avoid buying anything on credit after you have made your loan application. In particular, avoid purchasing expensive major items such as electronics or computers, furniture for the new home, gardening equipment, refrigerators and other appliances and especially automobiles. Even a small change in your credit ratio could cause your loan application to be denied.

2. The second most common mistake made by many home buyers is simply purchasing the wrong home. This is because home buyers can frequently get so caught up in the excitement of the buying process or the ‘look' of a home that they may fail to get proper consideration to what they really need in a home. Overlooking critical features in a home can easily result in purchasing a home that becomes difficult to live in and with later on.

3. One of the most common mistakes buyers make is withholding information from their real estate agents and real estate lawyers. Reasons for this tend to include believing that some information simply isn't important enough to mention as well as a fear of how they might come across to others if they do bring up concerns. It is important to keep in mind when you are purchasing a home that the professionals that you work with are just that-they are experienced professionals who have handled a number of transaction. There is a good chance that there isn't much they haven't already heard. Remember that their job is to represent your best interests. They cannot do that if they do not have all of the information. The best way to bring about a smooth transaction is for everyone to be up front.

4. When considering the purchase of a home it is also critically important to consider how much house you can realistically afford. Remember that just because you can qualify to purchase a home in a particular price range doesn't necessarily mean you can really afford. Besides that mortgage payment you will also have other expenses including insurance, home maintenance and possibly home owner's or association dues as well.

5. Buying a home without a professional inspection is also another critical mistake. If you are financing the purchase of your home a professional inspection is usually required; however, if you are not financing the purchase or if the seller has agreed to finance it you won't be required to have a professional inspection completed. Even if this is the case, it is always recommended to have an inspection completed anyway by a professional who might spot something you overlooked. This gives you the opportunity to ask the seller to make necessary repairs as well as possibly renegotiate terms of the sale as well.

6. Buyers also frequently make the mistake of simply not looking at enough homes. This results in not knowing enough about what's currently on the market; which can cause you to miss out on a better home. Only after you have looked at several homes should you begin narrowing it down. At that point it is important to re-visit each home at least once and view them again with fresh eyes. You may find that a home you previously thought was ideal has hidden problems. Taking a look at several homes allows you to make a much better educated decision and ultimately find a home that is best suited for you and your needs. A compulsive purchase while shopping around for a home could end up being not only one that you will regret but also extremely expensive as well.

By taking the time to learn from the mistakes of others you can avoid making some of the most common errors when you begin the home purchasing process.



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