Home-price adjustments in markets around the country have
opened doors of opportunity for many renters. If you are transitioning from
renter to homeowner, the prospect of making such a large investment may be
exciting, while at the same time overwhelming. But it doesn’t have to be.
Five Common Mistakes to Avoid
- Not understanding the home-buying process. Educate yourself. Find a
home-buying seminar that you can attend or research online. The U.S. Department
of Housing and Urban Development website (www.hud.gov) has
an entire section devoted to common questions of first-time home buyers.
Likewise, our company's website offers pages of information, free home
searches, and customer service representatives available five days a week that
can be contacted through e-mail, a phone call, or text messaging, to help
answer any questions you have.
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Not asking questions. There are many facets and intricacies to the
home-buying process, so although you may gain a basic knowledge, you will still
have questions. Don’t hesitate to let your real estate professional know that
you are new to the process. Make sure you choose a sales professional who is
willing to spend time with you and walk you through the entire process. He or
she will expect you to have questions at every step—from house hunting, to
making an offer to the closing. Remember, this is one of the largest financial
transactions of your life, so you want to have a clear understanding of what’s
going on.
- Buying on impulse. Don’t feel pressured into making an offer on the first
home you see. Buyers, especially first-timers, may be impressed by the first
two or three homes they view. Look at a good selection. List the positives and
negatives about each home. Narrow the prospects to three or four and then
return for a closer look. When you decide to bid on a property, work with your
real estate professional to get all of your questions answered before making an
offer.
- Looking outside your price range. Before beginning your home search,
consider getting pre-qualified to get an idea of how much you may be able to
borrow. Use this information as a starting point in determining your price
range. Then take into consideration other factors that will affect your monthly
budget once you are a homeowner, such as property taxes, homeowners insurance,
utilities, and maintenance.
- Not planning ahead. Think about personal changes you are planning in the
next five to seven years. For example, are you starting a family, and if so, is
the home large enough and will it continue to be? If this will be a starter
home or if you think you’ll be relocating in a few years, you’ll probably want
to pay closer attention to appreciation and resale value.
Above all, remember that knowledge is the key. No question is a silly question. Your real estate professional can be an invaluable asset throughout the process. Making smart home buying decisions will make the home-buying process less scary and your first home purchase a rewarding experience.