5 Common First-Time Homebuyer Mistakes
You’ve scrimped and saved for years—dreaming about owning your first home. Now it’s time to make one of the largest purchases of your life. Are you ready? Have you done all of your research? Almost half of Americans have some regrets about the home they now own, according to a survey by Trulia. A little preparation can prevent that from happening to you. Here are some of the most common mistakes first-time homebuyers make:
They don’t ask their lender enough questions.
Don’t be afraid to put your lender to work. If you take the first loan they mention, you could be missing out on the best deal. A reputable lender will take the time to get to know you and your financial situation before suggesting loan options. These questions will get the conversation started:
- What is the interest rate?
- What are the lender fees?
- What is the minimum down payment to qualify?
- What kind of loan is it, and what are the pros and cons of each type?
- How long will the loan process take?
They don’t act quickly enough to make a decision.
We get it—choosing a home is not a decision you are going to make lightly. But that doesn’t mean you can take all month and expect the home to be waiting for you. In July 2018, Properties typically stayed on the market for 27 days. 55 percent of homes were on the market for less than a month!
While buying your first home can be an emotional process, it’s important to stay focused and rational. You don’t want to fall in love with a house you can’t afford, but you don’t want to settle either. Try making a list of your must-haves and your could-do-withouts. That will help you make a quick, practical decision in a hot market.
They don’t work with the right real estate professional.
Buying a home usually means hours of filling out complicated forms that most first-time homebuyers have never seen nor heard of. A real estate agent can help you through each step—explaining what it’s for and how to do it right. Their expertise is worth the extra investment. In fact, their market knowledge may end up saving you from offering more than a home is worth.
They don’t make a compelling offer to the seller.
A seller that has only had a home on the market for one day is not as likely to accept an offer that’s below the asking price as one that has been on the market for one year. It’s important to do your research. A comparative market analysis (CMA) will help you compare the property you want with similar homes in the area. Based on that, go ahead and make your best offer first.
They don’t think about resale before they buy.
The average first-time buyer stays in their first home for about 11 years. That may seem way down the road right now, but it’ll be here before you know it. Considering these things will help smooth the transition into home number two — location, age, and size. Considering these important factors is a great start to a smooth home buying process, but many other questions are sure to pop up. For more than 30 years, the loan officers at Lennar Mortgage have been there to help, so don't hesitate to reach out.