Well-known Blunders First-Time Home Buyers Commit
Common Blunders
Listed here are three blunders first-time buyers may encounter on the purchase journey:
Going it alone. It’s great to do some online home shopping – and you might see homes in neighborhoods you’re considering and think a quick visit can’t hurt. Think again, warns Lane. The first thing should be talking with a housing counselor, lender, real estate agent, or another trusted adviser that will help you understand if you’re prepared to buy or if renting is actually a better option.
According to the Zillow Group Consumer Housing Trends Report, only 46% of buyers did not get the first home on which they made an offer, demonstrating that in today’s fast-moving market, “disappointment and competition now are a part of the process.” You need an ally who knows the system inside and out.
Looking at homes you can’t afford. Audrey Fox, a broker for Howard Hanna Real Estate Services in Elizabeth City, NC, insists that home buyers get pre-approved before she shows them homes. Pre-approval involves completing a loan application and submitting documentation like W-2s, tax returns, and pay stubs.
And remember, being approved for a specific amount doesn’t mean you have to spend that much. “You should decide how much you’re comfortable paying for your mortgage each month, considering all of your expenses beyond the mortgage, and focus on homes within your budget,” notes Deggendorf.
Not comparing mortgage quotes. Simply because you have dealt with one lender, or gotten pre-approved by them, doesn’t mean you have to stay with them. The fact is, for the best loan terms, it is best to shop around and compare quotes from different lenders, advises Deggendorf, who notes that Fannie Mae reports have found only two-thirds of consumers get more than a single mortgage quote. “If you don’t look around, you could be leaving money on the table,” he says.
Buying a home in the Tampa Bay Area? Give Nick & Cindy Davis with RE/MAX Premier Group a call at 813-300-7116 or simply click here, let us know what you need in your new home and let us get started working for you! Why would you want to experience any one of these blunders, when we can ensure you do not.