As a first time home buyer, you may think you’ve only got a handful of financing options to choose from when selecting your first property. However, there are actually several options to choose
Avoiding Common FirstTime Buyer Pitfalls
If you’ve recently decided to purchase your first home, you’re probably feeling a combination of excited and anxious. Buying a home is both an emotional experience as well as a business venture. To make the process as manageable and stress free as possible, take a look at the following mistakes that are common for first-time home buyers and make sure you’re prepared for the adventure ahead!The number one mistake first-time home buyers make is that they have no idea how much house they can afford. Before buying you’ll want to track all your monthly expenses (rent included) for about three to four months. This means all of your expenses – your morning coffee run, late-night Thai food delivery, entertainment – everything! After all of your expenses are averaged, subtract that amount from your net salary. Whatever’s left gives you a ballpark figure of the monthly house payment you can comfortably make.The number two mistake first-time buyers make is that they don't interview multiple lenders. Many first-time home buyers end up using a realtor-selected lender, and while there’s not anything exactly wrong with that, you’ll be better served by shopping around for the lender who offers the most options.Not doing any research on your own is also a common rookie mistake. First-time home buyers can do a lot of research on their own by visiting open houses and touring new home communities as well as reading the newspaper and real estate magazines to find out housing prices in the areas you’re interested in. By the time you select and contact a realtor, you’ll already have a general idea of the neighborhoods you want to buy in.Mistake number four is upgrading on new construction homes. When buying a home under construction, take stock of the features you really need and those you just want. Pre-purchasing upgrades is an expensive way to buy a dining room chandelier or upgraded light fixtures, landscaping or more expensive carpeting. Much of the work and additional features can be purchased at local home improvement stores and can be done yourself.Rounding out the list of common mistakes is purchasing the most expensive home you can possibly afford. First time home buyers often look for the biggest, most expensive home they can afford a mortgage for. Also known as being “house poor”, a great big house is nice, but you’ll regret it if you can’t afford anything besides your home.
Ray and Carla have been working as a team since 1995. Carla’s extensive knowledge of the Denver area real estate market not only includes over 35 years as a Real Estate Broker Associate but also in....
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