First-time home buyers might make some mistakes when shopping for, financing, and buying their first new home. Without personal experience or proper guidance, first-time home buyers can misunderstand the home buying process and how to approach making the best choices for them. To help these future homeowners, I’ve identified 4 mistakes first-time home buyers make.
4 Mistakes First-Time Home Buyers Make
Take a look at these 4 mistakes and accompanying suggestions to avoid problems when you begin the process of buying your first home.
- Jumping In Too Soon As a first-time home buyer, you are tempted to start shopping for your new home before you might be ready. Make sure to crunch the numbers to figure out what your real budget is, what your down payment can be, and what you can afford for the essentials like homeowners’ insurance, property taxes, and home purchase fees. Also, most real estate agents require home shoppers to have received at least a mortgage pre-qualification letter from a lender before helping with the house hunt. So save yourself time, and speak with a couple lenders to get pre-qualified first.
- Not Shopping Around Typically, your dream home isn’t within reach as a first-time buyer. While you might have a perfect neighborhood you’d love to live in or a specific architecture style you’re drawn to, keeping your options open and truly weighing your wants vs. needs and what you get for the money is key. Listen to your agent when they recommend properties outside of your specific home search criteria as they might have you tour a couple properties that satisfy your home search criteria in a different way.
- Spending Too Much Having some funds saved for any unexpected expenses or move-in repairs is a must. Don’t spend every penny you have without considering possible homeowner expenses you’ll be faced with after purchasing your first home. Once you figure out your new home budget, put extra money aside for costs that can pop up.
- Buying Expensive Items or Applying for Credit Before Closing If you make large purchases or apply for credit (to buy the large purchase) ahead of closing on your first home, your mortgage lender could see that before you finish with your loan paperwork. It could be a red flag and cause confusion, or worse, stall your loan from going through. Wait to buy the new home furnishings and automobiles until you speak with your loan officer for advice.
“First-time buyers made up 31% of all home buyers in 2021.” (NAR, 2021)
First-Time Home Buyer Tips
Research online and find answers to home buying questions you have before you start making your first-time home buying decisions. Speak with friends and family members who have bought a home before and get their feedback as well. From here, decide what you should have in order, who to reach out to, and what tasks you need to execute.
Shopping and buying your first-time home couldn’t be more exciting. It can also be time-consuming and stressful. Having taken the time to educate yourself on the best options for your circumstances will make your first-time home purchase go smoother and return better results. Your new first-time home purchase is just around the corner!
Working with an Experienced Memphis Area Real Estate Agent
When it’s time to sell your existing home or buy a great new place, turn to a highly regarded and well-informed local real estate agent. You want someone that you can trust to give you the best advice and know-how for your new home purchase or sale. Check out my other great articles to help you through your home selling and buying experience here in Memphis. Staging homes for sale is also part of my expertise. Please ask me about it when you reach out.
Take a minute to learn more about me. With over 15 years of top-notch service for my clients, I can guide you with your house sale, new home purchase, or buying a great parcel of land. As a top, licensed real estate agent in the Memphis area, showing you the best properties for you and your family is my goal!
Contact me at (901) 828-8919 or drop me a quick note at firstname.lastname@example.org and we can speak in person about your plans and options. Ask me about seeing homes for sale by video or virtual tour and find the best place for you!
Angie Kelley, Crye-Leike Realtors
(901) 828-8919 or (901) 756-8900