4 Mistakes First Time Home Buyers Make!
1. Know your number!
Most first time buyers don’t realize that buying a home is a process not an event like the “Super Bowl”. There are certain steps needing attention prior to even going out and looking at homes. The first step is to get your finances in order and be “pre-approved” by a lender of your choice. You can walk into the branch where you do your banking, however, that may not be your best choice. You see Bank branches do maybe one real estate loan a month while a good loan broker will do 30 loans a month. Who do you think has their skills honed better? So get pre-approved in writing then begin to look for your new home.
2. Get all your inspections
When you walk through a home and you like it and want to buy it your eyes may be glasses over with the whole thrill of owning your own home. This is good as well as being part of the home buying process however, you need to keep focused on making sure you are buying a home, which you are spending the most amount of money you may ever spend, that it is not a “Money Pit”. So get your inspections…all of them.
Property Inspections, Pest Inspections, and any inspections suggested in the two previous inspections like a roof inspection or pool inspection. Read the inspection report and use them as a guideline to help you make an informed decision as to whether to continue with the purchase of this home or not. Follow the advise of people you know and trust if you are unsure of what the reports imply or state.
3. Do your due diligence
The thrill of purchasing a home is a great feeling and one that should be enjoyed. Sometimes a first time buyer forgets there is more to buying a home then that of shelter. You may stay in this home for many years. You may sell it in a few years. In any case you need to do your due diligence. Find out all that your can that may have an adverse affect on your new home. Keep in mind the home buyers you want to sell it to in the future.
Check out the schools; are they what you want for your child? How about future buyers? Are there any environmental issues you need to know about such as was your new home once a gas station? Or a place where toxic substances were stored?
How about any new developments that may be planned that would lower the price of your home. Because in the future other buyer may be able to buy a home for the same price you are asking for yours. In fact, the other home may be newer because of that development,
Finally, check out the competition for your new home. Is there a home of better quality and location that may be lower in price? Or is it listed for sale at the same price as the home you are considering? Don’t be afraid to check with the city building department for future building permits of your future neighbors. Or local business projections like a major job hiring that would bring more people into your neighborhood and make home prices rise.
4. First time home buyers don’t know there are costs involved in purchasing a home.
Some are fixed expenses and some are one time expenses. In either case it is good to know them before you get to the closing table at the escrow company and finding out you will have an expense you were unaware about. Fixed expenses are: Principal, Interest, Taxes, Insurance, Impound Accounts, and Payment Mortgage Insurance.
Your one-time expenses, which can be thousands of dollars, are Title Insurance, ALTA Insurance, Escrow Fees, Notary Fees, Processing Fees, Points on your Loan, Inspection fees, Appraisal fees and for the fun of it…buying fees. No there aren’t buying fees but there may be fees I have not mentioned here that someone may come up with during an escrow period.
The 4 Common Mistakes First Time Buyers Make are avoidable.
It not only first time buyers, but home buyers in general that can make these mistakes. Understand the home buying process has its challenges, but in the final analysis buying a home will be an experience you will cherish for the rest of your life.
Remember, Cliff Keith is always here to help you. Increasing your net worth and prepare for the future through real estate is our goal for you. It’s one of the many good aspect of home ownership. Give us a try. You will be glad you did.
Now what to do?
To find your new home all you need to do is an easy 3-Step Process.
1.) Pick up your cell phone.
2.) Look up my number (650-346-7366).
3.) Call me immediately.
When you do call, we will discuss the best way we can meet so you can get the best information you need that will help you locate and purchase your new home as quickly as possible and receive the highest value possible at an amount of money you want to spend. Do it now. It’ll be the smartest decision you’ll ever make.
We may also discuss with you the idea of looking at a duplex for sale in Redwood City as a suitable alternative.
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