Homeownership is an exciting time! Once you decide to buy a home, there is plenty to do, however, don’t find yourself victim to these pitfalls!
Mistake #1 – Try to go it alone, without a Buyer’s Agent.
Some buyer’s avoid reaching out to a Realtor for a handful of common reasons: They don’t want to “bother” us, they’re afraid we’ll cost them money (and they’re just not ready yet!), and they’re afraid of pressure to buy.
Great real estate agents will never hard-sell you. Our job is to help you unpack your needs and lay the groundwork for a successful house hunt. We understand the laws, contracts and market, using that knowledge to put your best interests first and foremost. In other words, we’ve got your back!
Mistake #2 – Underestimating the costs of home buying.
It’s just downpayment and closing costs, right? Google says estimate 6% of the purchase price. Well my friend, google is wrong. These costs vary greatly by state and town, so be sure to get estimates directly from your trusted Loan Officer. They’ll analyze your budget and help you determine a budget for your mortgage PITI (Principal, Interest, Taxes and Insurance).
Don’t forget to take into account utilities, heating costs, and even the costs of buying – your appraisal fee and home inspection! Be sure to budget out all costs to make sure you don’t overextend your limits. Your Lender and Realtor will help itemize these costs so there aren’t any surprises.
Mistake #3 – Having little to no savings.
Gone are the days where you need 20% to buy a home. There are programs now that offer 0%, 3%, 3.5% and 5% minimum down payments. There are also state programs that offer Down Payment Assistance. Whatever route you decide to take, make sure you explore all your options with your Loan Officer. They’ll help you design a mortgage that works for you, and then your Realtor will use that information to structure your terms when making an offer on a home. Even if you get Down Payment Assistance, you should still have savings for closing costs, emergencies, and general home maintenance. Don’t put yourself in a position to be house poor!