7 Common First-Time Home Buyer Mistakes

October 14, 2017

Buying your first home is exciting. If you are on the hunt for your first home you want to avoid these common first-time home buyer mistakes:

1. They don’t shop around to compare lender options or ask enough questions and end up missing out on the best deal.

2. They fixate on the lowest interest rate without considering the fine print on restrictions and penalties that could impact future plans.

3. They don’t act quickly enough to make a decision and someone else buys the house. Asking everyone for their opinion will drive you crazy – select one or two people to turn to for some input, but be ready to make the final decision on your own.

4. They don’t find the right agent who’s willing to patiently help them through the homebuying process, and meshes with their personality or outlook. Unlike a listing agent whose first duty is to the seller, a buyer representative works exclusively on the homebuyer’s side. Find someone that is both highly skilled and a good fit with your personality.

5. They don’t do enough to make their offer look appealing to a seller. There are elements beyond price such as closing terms or deposit structures that can make an offer more appealing to a seller and help snag a win-win deal.

6. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years. Give a little bit of thought to future marketability without becoming obsessed about it.

7. They allow their credit score to change before closing. Preapprovals are not guarantees of funding. Anything that impacts a credit score, from getting a new job to making purchases for the new home can cause a lender to change terms or rescind financing.