5 mistakes of first time home buyers: When you are starting your search for a home it can be a bit overwhelming at times. Knowing where to start helps. Here are 5 things you should NOT DO when you start.
#1 Mistake of first time home buyer. DON’T Start looking at houses without a preapproval letter
The first common mistake made by first time home buyers is, BEFORE you start scrolling through home searches it’s crucial you have an understanding of the payment and down payment. I recommend an estimate outlining fees in writing. Does it include Homeowners Dues? If you so, how much? Does it include your taxes and insurance? If so, how much? What about closing costs, is it best to ask the seller for credits or are you ok without? Ultimately you need to see at $450,000 purchase price what will be required of you to move forward? Ultimately seeing it in black and white is helpful when starting your search.
Finally, this will save you a lot of heartache. It’s very easy to start clicking on the ads on the side of your side bar. (Kind of crazy how they start showing up as soon as you are talking about buying a home.) It never fails we click on the “pretty” homes, which are often times outside of our budget. It causes severe anxiety and frustration when we find out our finances may not allow us to have that “expensive” house. Furthermore, it takes the wind out of your sails before you’ve even started the actual process.
#2 Mistake of first time home buyers: Don’t overspend
Sometimes you are “qualified” for more than you are comfortable paying. Make sure you budget. Furthermore make sure you are aware of your total debts etc. A home does require maintenance, some big and some small. Appliances break down, you will have to pay utilities and property taxes so make sure to pad for these items as well. Think about the idea of living house poor. If that’s something you want and can handle until your next home, great, do what you are comfortable with.
Georgia first time home buyers have a hard time understanding NEEDS vs. WANTS. Some people want a pool, or new construction but others may NEED a single story, 2 car garage or school district. Make sure you are clear on your WANTs vs NEEDS.
#3 Mistake of first time home buyers: Don’t get Analysis Paralysis
Sorry to burst your bubble but there is no perfect home. Sure with an additional $100,000 we can all get closer to our desires. However, that’s not realistic. Even after talking to people who build their own homes, they have things they want to change. So, don’t get stuck and overthink it. There are going to be things that will need to be done to customize the home to your needs. The sooner you accept that the better off you will be on your home search.
#4 Mistake of first time home buyers: Don’t just buy the shiny penny, consider the location as well
The 4th common mistake of first time home buyers has to deal with the popular slogan location, location, location it’s the one thing that you can’t change. So, beware when buying a home that you weigh all the factors. You may find a nice flip, but a terrible neighborhood. Sure the neighborhood may turn over, but in how long? You also must weigh out your payment, the house and the location, is it worth it? You are the only one that can answer that question. Don’t get sucked into the shiny penny!
#5 Mistake of Georgia first time home buyers: Don’t Skip Inspections!!!!
The last of 5 common mistakes of Georgia first time home buyers is, at a minimum, home inspection, pest, radon, HVAC, Sewer/septic, roof and mold should be considered when buying a home. Unless you have the financial capability to pay for all of those things failing. There are circumstances that you might reconsider and timelines you have to meet, but in my opinion a first time home buyer should never skip inspections. Often times inspections are also your biggest upfront expense risk.
Helpful Links for First Time Home Buyers!
Who Pays Closing Costs, Inspections Pass or Fail?, Down payment assistance
