Common First-time Buyer Mistakes

10 Aug

Are you considering purchasing your first home? Whether you’re looking at homes for sale in Arvada or homes for sale in Parker or Thornton, you want to avoid common mistakes. If you’re a first-time home buyer, especially, you should be aware of these mistakes commonly made by home buyers, and some ways to avoid them.

1. Not knowing what you (the buyer) can afford

When many first-time homebuyers consider their budget for a house, they do not always think about their expenses outside of their current housing. To determine the mortgage payment you can afford, calculate all of your anticipated expenses outside of housing for the year, and subtract that total from your yearly income.

2. Not going through mortgage qualification

You may know what your budget says you can afford, but until you have qualified for a mortgage, you do not know if that amount will agree with what your potential mortgage lender says. If your credit score is on the low side, obtaining financing could be difficult. Going through mortgage qualification steps and having your financing is in order before you start looking will make the home buying process much easier for everyone involved.

3. Using the seller’s agent OR not hiring an agent at all

While working with a seller’s agent is better than not working with an agent at all, using the seller’s agent is not a good plan. They were initially hired to sell the house for the best possible price, so that will likely be their primary interest – not you and what you need in a house. Not hiring an agent at all is even worse. Good agents know their markets and will work with you to find the house you are looking for.

4. Not thinking about the future

Buying a house is making a long-term commitment to a specific place. Consider some of the things you are involved in now, and some of the things you want to be able to do. If the house barely meets your needs today, it might not be the right place for you to be in the future.

5. Not thinking about additional expenses

Additional expenses will come up with major purchases, and a house is no exception to that rule. Whether it is the closing costs, minor renovations, or an unexpected plumbing issue, you need to be prepared to spend more money than the purchase cost. Consider these types of expenses when you set your budget.

6. Not having the house inspected

Some problems with a house cannot be anticipated, but there are some issues that can be. Having the house inspected before you purchase it will tell you what those issues are. Knowing many of the problems a house has will help you make a better-informed decision about which house to buy, and help your agent when negotiating a purchase price.

If you’re a first-time homebuyer in the greater Denver area, we would love to help you find your new home – and avoid common mistakes! Contact us for help today!