Deciding to buy your First Home is not an everyday activity. There’s a steep learning curve, which explains why mortgage professionals see the same blunders over and over again. Here are six common — and costly — mistakes many First Home Buyers make.
1. Believing the Listing Agent is Your BFF – Unless you hire your own buyer’s agent, the agent selling that house works for the seller
2. Setting an Unreasonable Time Table – Assuming you’ve been Pre-Approved for a mortgage and it’s a fairly simple deal, you may be able to close in 30 days, but 45 to 60 is more common,. Foreclosures may take 75 to 90 days and short sales have been known to take 6 to 9 months.
3. Financing – One and Done – There should be a chemistry that develops between you and your loan officer. Educate yourself on the complicated mortgage process and the whole home buying experience
4. Trash Talking as a Bargaining Technique – If you’re making an offer, you want to stress what you like about the place, Don’t forget: You’re a guest in someone’s home. Forgetting to be polite is a common home buying mistake.
5. Believing You Can’t Afford Professional Advice – Sometimes the right professional advice from an attorney, home inspector, insurance agent saves far more than it costs. Do not hesitate to ask for it.
6. No Reserve Fund – Many home buyers are tempted to stretch as far as possible – and drain all available savings just to buy their dream home. There are going to be some unforeseen circumstances that arise, either personally or with the house. Plan to keep an emergency fund available after closing to address those unforeseen situations that might arise, either personally or with the house.