Purchasing a house will be a big decision that takes forethought and planning. That said, finding a dream home can cause somebody to feel rushed to make an offer, which causes them to make some mistakes along the way. Be aware of these three mistakes that first-time homebuyers often make.
Not Making A Competitive Offer
Shopping for a home is not like shopping at a store. The list price of a home should only be treated as a suggestion, with the local real estate market and specifics of the home dictating if the price should be higher or lower.
For example, in a market where home inventory is low and demand is high, homes can have an offer made on them the very same day that it is listed for sale. In addition, the selling price can also be much higher than the list price because of this.
A common mistake is not making the seller a competitive offer and coming in right at the list price of the home. If another seller offered anything more than list price, chances are that the highest offer will be accepted.
Meanwhile, if the home has been on the market for a long time with very little interest on it, you could actually offer below the list price because the sellers could be eager to sell.
Taking Out Additional Lines of Credit
Securing a mortgage is a very long process, and your credit will be pulled and checked multiple times. New homebuyers may not be aware of this, and prematurely start opening new lines of credit while their mortgage is still being processed.
This usually happens when they want to get a jump-start on renovations by opening a new credit card at a local home improvement store, or even getting a loan for a car, which will increase the debt-to-income ratio. You are always best served by holding off on all major purchases when getting a loan to ensure that you will receive financing by the home's closing date.
Not Getting A Home Inspection
The initial walk-throughs of the home is not enough to judge if it is in good shape. If someone has no experience with home construction, they should definitely get a home inspection prior to closing on a home. It is a buyer's only chance to have someone investigate problems they may not be aware of, such as foundation issues, proper insulation, or electrical problems.
To avoid making these mistakes, be sure to work with a real estate agent in your area who is excited about working with a first-time homebuyer. They can help guide you along throughout the process.
For a real estate agent, click this link http://www.cuddrealty.com or do an online search.