8 Foolish Flops For First Time Home Buyers To Avoid

1) They don't interview agents before choosing one.

  • most people sign on with the first agent they meet or the first one that someone suggests 
  • first time home buyers should take their time, interview a few agents, and select the one that they feel most comfortable with
  • they should choose the agent who will best represent their home buying
2) They go to open houses or arrange to look at a home without telling their agent.
 
  • there is no need for them to do legwork without telling their agent
  • real estate agents are happy to arrange and accompany buyers to open houses and showings
  • not telling your agent about each home that you're interested in is actually doing a disservice
  • how will your agent know what you like if you don't tell them?
3) They call another agent because a house they want to see is listed by another agent.
 
  • your real estate agent can show you any house that you want to see (whether it is their listing or not)
  • besides your spouse, your real estate agent should be the first person you call when you see a house you like
4) They don't have any idea where they want to live.
 
  • some first time home buyers go into the buying process without any idea of where they might like to live
  • they spend a huge amount of their time, and their real estate agent's time, looking at homes all over a region
  • any buyer should do themselves and their agents a favour and know where they want to find their dream home before they begin searching 
5) They spend months looking at homes, give up and decide to rent.
 
  • first time buyers who are not sure where they want to live may decide to abandon their home buying goals and settle for renting
  • however, finding and buying the right home is rewarding, no matter how long it takes
  • they should never forget to keep that home ownership goal in mind
6) They skip the mortgage pre-approval process.
 
  • some first time home buyers forget one of the very first steps in the process... getting mortgage pre-approval
  • not only does mortgage preapproval confirm that a home buyer can afford to buy a home; but it also reveals the top of their budget
  • this helps determine a reasonable price range when they start looking at homes
7) They don't factor in additional expenses.
 
  • sometimes when first time home buyers gain mortgage preapproval, they immediately begin to look at homes in the top of their price range
  • buyers have to remember that a homes selling price is not the final fee associated with the home
  • buying a home comes with additional expenses like property taxes, insurance, maintenance fees, possible condo fees, etc.
  • this is why it is so important for buyers to determine a price range they are not only are approved for, but also will be comfortable with
8) They apply for other loans during the closing process.
 
  • first time home buyers fail to realize that their mortgage preapproval must turn into mortgage approval before they're able to purchase a home
  • some buyers get so excited about buying and filling their new home that they apply for new lines of credit during the closing process
  • taking on this new debt affects not only their debt-to-income ratio, but it also can lower their credit scores
  • the last thing you want to do during the home buying process is alter your financial picture