If you’re a first-time homebuyer, purchasing a house can seem like a daunting task. We’re not talking about deciding between Robins Egg Blue or Alabaster paint colors here; we’re talking about one of the largest purchases you’ll ever make. Potential homebuyers have a lot of decisions to make and open house tours ahead of them. With the help of a trusted Nathan Grace agent, first-time buyers can avoid some of these common rookie mistakes before closing on their first home.
1 | Not understanding how what they’re approved for correlates to various mortgage payments
Buyers commonly understand the sales price they’re approved for, but do not understand how this correlates to various mortgage payments. New homebuyers often make the mistake of utilizing quick-access mortgage calculators online, but don’t understand that these calculators may not include property taxes, home insurance and/or private mortgage insurance required by their lender. Our Nathan Grace agents can help their clients understand every aspect of both the home buying process as well as the realities of homeownership.
2 | Underestimating how important a relationship with their lender is
Buyers tend to underestimate how important the relationship with their lender is. The lending and underwriting process is lengthy and very detailed, so hiring a lender that is accessible during the purchase of a home is a very important aspect of the process. Many buyers make the mistake of going with the lowest interest rate without asking detailed questions of their lender about what other fees come along with that. It is important for buyers to seek out a lender that is available to them at any point of the process. Our Nathan Grace agents are able to connect homebuyers with lenders they know and trust to help their clients through the purchase of their home.
3 | Underestimating the number of upfront costs buyers are responsible for
Buyers commonly underestimate the number of upfront costs they are responsible for in the beginning of the transaction such as the inspection and appraisal fee. Another cost that homebuyers often don’t anticipate once moving into their new home is those surprise expenses needed for repairs. It is impossible to predict if new homeowners will need to fork up some extra cash to repair their air conditioner, water heater, plumbing, etc. Trust our Nathan Grace agents to lead their clients to reliable and experienced resources if these needed repairs do pop up.
4 | Focusing on things that can easily be changed
Often times, first-time homebuyers struggle with envisioning a home as their own when going on showings with their real estate agent. Some buyers tend to get too caught up on wall colors, flooring, appliances or countertops, as opposed to focusing on the things that cannot be changed. It is important to keep the permanent aspects of the home in mind when house hunting, such as the neighborhood or proximity to work. Other things to keep in mind would be the accessibility to important places, such as grocery stores, entertainment, highways, schools, etc. Working with an agent who specializes in the area buyers are looking to move to can help tremendously, and we have agents at Nathan Grace who cover every corner of the metroplex.
5 | Not preparing for multiple offers
In a seller’s market, many rookie homebuyers don’t prepare for multiple offers on a home of interest. It is important to not get too emotionally attached or put all of your hopes into one home. There is no way of predicting whether your offer will be selected, so be ready to continue the house hunting if you’re placing an offer on a hot property. However, our Nathan Grace agents are experienced in this multiple-offer market and can provide you expert advice on what your offer needs to seal the deal.
Did you make any rookie mistakes when purchasing your home that you’d like to share? Tell us in the comments. To get in touch with Kaitlin email kaitlinlovern@gmail.com
