7 New Home-Buyer Mistakes
Financial Quick Sand
There are many ways to financially ruin your dream of owning a home. Adopting a conscientious and eye-open approach,and using the appropriate resources can avoid these pitfalls.
Not Knowing Your Budget- Knowing how much you can spend on a new home is crucial. This information will include your personal expenses and budget, as well as pre-qualification details from your lender. Getting pre-approved for the first time can be a frightening process for new home-buyers, but won’t be nearly as painful as entering a transaction that you are not prepared for!
Forgetting About Hidden Costs- Costs such as property insurance, taxes, maintenance, and higher utility bills can quickly blow a budget. Your agent and lender can estimate some of these costs for you, but it will be important for you to do some research as well. Will you be doing your own yard work, or hiring a landscaper? Will seasonal weather impact your power bill? All of these costs should be added to your monthly budget.
Ruining Your Financial Situation- Remember, you don’t own the home until you have the keys! Immediately before you close escrow, your lender is likely to run an up-to-date credit report to ensure that your financial situation is the same as when you originally applied for your loan. Buying large ticket items, opening lines of credit, paying off large amounts of debt, and moving money between accounts can all potentially ruin your credit situation. If you must make any financial decisions or changes, be sure to call your lender and agent first.
Falling In Love
Buying your first home is exciting! You may find yourself getting too attached, impatient, or overly emotional about the process. Remember, this is a financial transaction. It is important to find a home that you love, but even more important to make a sound financial decision.
Love At First Sight- Falling in love is exciting. Falling in love with a home that you don’t own yet can be dangerous! Falling too hard for a home can potentially cloud your judgement and cause you to rush an important process. Keep your emotions in check and remember that you are making a financial decision that requires your attention. There will be plenty of time for the love affair!
Being Too Picky- Wallpaper and paint should not be deal-killers. Your decision to purchase a home should be based on items that cannot be changed such as location, size, and convenience. Look for a home with “good bones” that meets your most important criteria, and overlook the cosmetic items that can be changed.
Believing Online Home Values- Online home values are based on information such as recent sales in the area, algorithms, and public tax records. They are potentially a starting point for you to know the value of a particular home, but are certainly not gospel. Take online information with a grain of sand, and contact your agent for more specific and relevant information. Here’s a great article to read about online home values.
Skipping Inspection- The house is beautiful and everything looks great, an inspection isn’t necessary right? Wrong! Even the most pristine home can have issues such as leaks in the walls, structural issues, or bug infestation. You need to know everything about your investment so you can make informed decisions and prepare for costs. Don’t judge a book by its cover.
Your first home buying experience should be enjoyable. Preparing financially and keeping your emotions in check while going through the purchase process will help to keep you on track. Finally, hire an agent who can patiently and professionally help you such as Shawn M. Preston. Shawn has over 13 years experience in the Las Vegas real estate market and is ready to help you with your real estate needs. Call Shawn M. Preston at 702.350.2289.
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