When it comes to firsts, being a first-time homebuyer can be one of the most exciting, intimidating and overwhelming experiences for many buyers.
Most first-time homebuyers are not equipped to go through the process alone. Even when they have help, there are common mistakes that they make time and again. Here is your list of important information to know as a first-time homebuyer. Understand and avoid typical pitfalls of buying your first home, such as:
- Not inspecting your new home
- Only shopping for used homes
- Buying a home that isn’t in a great school district
- Not having a complete picture of your finances
- Getting so stressed you stop shopping for you home.
1. Not Investing in an Inspection Before Closing
One mistake that you can make is not getting a good inspector. For example, if the house is old and you’ve already put so much money into repairs. Every other couple of months there is something to fix.
When you purchase a newly built home, you are starting from scratch. So you don’t have to worry about a major fix for years or that a seller is hoping the inspector will miss mold or other major problems.
New homes are inspected several times throughout the construction process, giving homebuyers peace of mind. However, if you still would like an inspection of a new-construction home, speak to your builder about special requirements for the inspection.
2. Not Considering Different Housing Types — Like New-Construction Home
As a new home buyer, you also may regret that you didn’t give the thought of buying a newly built home a chance. Because you feel like you wouldn’t be able to afford it.
While newly built homes can cost more than a used home. You’ll save time and money in the long run by not having to worry about costly repairs because everything is new and under warranty.
3. Not Considering The Quality of the Neighborhood and Schools
For buyers that have children or plan to have children in the future, looking at the quality of the schools around your neighbourhood is important. New homebuyers assume that since the home they’ve bought is in a nice neighbourhood, the schools are good too. That isn’t always the case.
Therefore, it’s essential to assess the neighbourhood before purchasing a home. If you have children, doing your research on the school district, its teachers, rankings and the route to school are important.
Moreover, first-time buyers have to understand that while you can update your home, you can’t change the neighbourhood and all that comes with it.
4. Not Understanding How Much House You Can Afford
Looking at expensive homes is usually a fun activity that people do on the weekends and purchasing one can be something to aspire to when a buyer reaches a certain level financially.
When you are a first-time buyer, however, not knowing your budget before you go house shopping is a mistake that can turn you off to the houses you can actually afford and make the process less than thrilling.
The biggest mistake we have constantly seen is when buyers go look at a home that is obviously over their budget. They love it. And then when they begin looking for homes within their realistic price range, they are continually disappointed with what they see. It becomes a depressing venture for them and a difficult emotion to overcome.
5. Opting Out of the Homebuying Process Altogether
Feeling intimidated by the thought of going to a bank to ask for a home loan when you’re a first-time buyer is understandable.
A lot of first-timers think that they won’t qualify or would not get good rates. And this often leads to the mistake of people never consider the possibility of homeownership.
Many new homebuyers self-select out of homeownership by assuming they won’t qualify for a mortgage. Or that they need to put down 20 per cent. Others simply don’t know where to start.
Banks offer first-time homebuyer mortgages. Additionally, there are government programs that are designed to help buyers who need a little help in actualizing their dream of owning a home. Again, a lot of buyers don’t think they qualify for these programs or simply don’t even know they exist in the first place.