There are 3 common mistakes when people tend to make when purchasing their first home. Sometimes, these mistakes are carried through and are made when purchasing the second or third home, too. While there are no across-the-board rules in real estate as different counties and states have different rules, and different people have different needs, these three mistakes are usually pretty common and pretty avoidable.
1. Not understanding that affording a home on paper doesn’t mean the person can actually afford the home. Qualifying on paper and living life are two different things. People who qualify for a home have to consider all the extra expenses that come with owning that home, like property insurance, taxes, water bills, HOA fees, major repairs, etc. Think about what it would really cost to own a home before diving right in.
2. Falling in love with a drive-by property and being afraid to ask about it. New homeowners are usually afraid of what they won’t qualify for so they take forever in seeking what they can qualify for. The best way to get a realistic view on what is possible is to head into the lending process in a straight-forward manner. You will discover what is possible and what needs to be worked on.
3. Ask for references. Yes, you can do this- even with lenders. You are having someone help you make a life decision that will cost you, not them, a lot of money. Why on Earth would you not ask for references and do a professional background check. When you apply for a job, typically references and a background check are run. You’re not be impolite, you’re being on-the-ball. Ask away and do some research before signing anything with a lender or a real estate professional.