Buying a home for the first time should be one of the most satisfying experiences of your life. However, it doesn’t always end up that way for those who go into the process without fully thinking everything through. There are many variables associated with becoming a homeowner, and a lot of things can go wrong when you least expect it, but as long as you have the right Gilroy real estate agent on your side and avoid the rest of these mistakes you should achieve the outcome you hope for.
Not Including All the Costs When Determining a Budget
Anyone will tell you that the first step to buying a home is figuring out a financial plan and budget in order to know how much you will be able to afford each month. What they might leave out is that your monthly mortgage payments aren’t the only cost you need to allocate funds for. Having a good-sized down payment is always a plus, and the homebuyer is almost always responsible for taking care of closing costs as well as home inspection and appraisal fees. Then you will also need to factor in moving expenses and potential upfront home repairs. If you’re truly ready to buy a home, you’ll have money to cover each of these considerations.
Not Getting Pre-Approved For a Loan
Once you’ve sat down and put together a pretty complete financial plan, the next item on your to-do list should be getting pre-approved for a loan. This not only allows you to know exactly where your price range falls before you start your home search, but also lets sellers know just how serious you are about buying. It’s not a good feeling when you start falling in love with a house only to find out you can’t realistically afford it or the sellers are entertaining offers from others who are already pre-approved.
Not Working With the Right Real Estate Agent
Hiring the wrong real estate agent, or not one at all, can make a significant difference in the outcome of your home buying venture and the overall experience you have throughout the process. Your agent should be looking out for your best interests, working hard to make things as stress free as possible and ensuring you don’t make any of these other errors we’re talking about. They should be knowledgeable about the area, committed to seeking out properties that match your criteria and able to bring listings to the table that you wouldn’t be able to find on your own.
Not Getting a Home Inspection
It’s more common for buyers to skip the home inspection step than you might think, and it’s a big no-no. You might be tempted to save on the added expense, but inspections often reveal serious problems that you wouldn’t otherwise know about until it’s too late. Knowing if there are any issues ahead of time gives you the opportunity to rethink if this is really a home you want to invest in, renegotiate the asking price and/or arrange a new deal with the sellers to have everything fixed beforehand.
Not Thinking About the Big Picture
A home is probably the biggest investment you’re ever going to make, but because it’s all so exciting, it’s also easy to let your emotions take control of your decision-making. That’s why so many first-time homebuyers make the mistake of either jumping too quickly to purchase one of the first homes they see or come off as too picky. Going either of these routes instead of looking at the big picture can be dangerous. Keep in mind that your exact “dream home” may not be available, especially in the budget you’re working with, but that doesn’t mean you have to settle either. Find a home that you can afford and has a lot of elements that you really like, but don’t ever feel like you have to compromise what’s most important to you and your family.
These tips should help make your first-time home buying experience a little easier, and so will your Gilroy real estate agent.