Buying a new home can be overwhelming, but do not panic, with an agent by your side to guide you through the process, you will do just fine. Dooley and Mason have come up with six rookie mistakes you should avoid as making one of these mistakes could cost you in the future.
1. Getting too emotionally attached. You are about to purchase what is probably the most expensive item you will ever buy. One of the common mistakes first-timers make is being overly involved with the house. This can lead you into missing out on other houses that could have been your perfect home.
2. Finding the home yourself. We know the first thing you will do when looking for a new home is researching on Zillow, Trulia, Redfin, and other real estate sites. Hiring an agent can provide information that you may not be able to find in the house listings, which can result in wasting your time when visiting the home.
3. Going directly to the listing agent. Unless you know the listing agent personally or someone you have previous experience with, this is a bad move to make because the listing agent will only be working for the seller’s best interests.
4. Not saving enough money. Having enough money for down payment is a great first step. However, you should think ahead and consider these additional expenses. You should have two to three months worth of mortgage payments in reserve. Moreover, you should also count on paying closing costs (between 2% and 5% of the home’s price) as well as property taxes. And on top of that, we recommend you to have an emergency fund for unexpected expenses, such as a leaky roof or interior renovations.
5. Not getting pre-approved for a loan. If you want your offer to be taken seriously by the seller, you should provide proof of income and assets to obtain a pre-approval letter from a lender. Should the seller receive multiple offers on their house, by having a pre-approval letter will rank you higher above everyone else and more leverage in negotiations with the seller.
6. Not getting a home inspection. All homes need inspections, even brand-new ones. Homeowners tend to overlook this step because they are eager to move into the new home, which can be a risky move. A home inspection is inexpensive and highly beneficial to your investment. The last thing you need when moving in is fixing floor cracks or rotten siding.