First Time Buyer Mistakes To Avoid

Now is an absolutely great time to be buying a house for the first time. Interest rates are at all-time lows, the market hasn’t seen a bounce in prices (yet), banks are lending again and there are a number of great programs in place to help the first-time buyer. Buying real estate is a big responsibility, and when doing it for the first time it is important to avoid some common mistakes.

Find The Right Professional To Assist You

First-timers underestimate the importance of finding the right real estate agent. Not all agents are equal. Not just their level of experience levels but every agent has their own unique personality. You want to be sure you find an agent that you feel comfortable with and that you respect.

Things to consider when selecting an agent include experience and education. What can they bring to the equation? Do they know the area well? Will they be an advocate for you and negotiate aggressively on your behalf? You will also want to know if they are a full-time agent dedicated completely to real estate and their clients. One easy way to judge this is by how fast they returned your initial contact. If they don’t get back to you within 24 hours, move on, find someone that is eager for your business.

Know What You Need, Know What You Want

A common mistake for first-time home buyers is that they haven’t really thought about what their needs and wants are. Now, a good agent will help you with this, but you should have done some thinking about this first. Make sure you differentiate between needs and wants. Needs might be the number of bedrooms or the particular school district. Wants might be a big yard, an extra half bath, an older home with character, etc. Know what you can compromise on and what you can’t and share that with your agent. This will help you shorten your search and helps you know when you have found the right house for you.

This Is One Of The Biggest Financial Decisions You Will Make

The third mistake is not considering that a home is an investment, but a long term one. Over time, a home can become one of your most valuable assets as you build equity and the home’s value rises. For it to be a good investment you have to purchase it correctly. Is this home priced right? Compare it to other similar homes. Is this home in a desirable location or is it next to a busy street, etc? Will it require a lot of work? Again, these are things that a knowledgeable agent will be able to help you with. Buying a home can be an emotional rollercoaster. It is important to take a step back and look at the purchase logically.

Finding The Right Lender Makes All The Difference

Finally, ask your lender lots of questions and be proactive about finding the best deal. Different lenders will offer you different rates. Research your options and shop around. Would you be better served with a 15-year or 30-year note? Ask lots of questions about the difference between adjustable and fixed rate mortgages. Learn about points. Find out how much interest you'll pay over the life of the loan. The lender is there to serve you, so don't be shy about getting the information you need.

You Can Do This!

Buying your first home is a tremendous achievement in one’s life. There is a pride in home ownership that is unlike just about any other feeling. It is one of the biggest decisions that you will make at this point in your life. Go about it the right way. Think it all the way through. Choosing the right real estate agent will help greatly.