ORLANDO, Fla. (Ivanhoe Newswire) — About 32 percent of home-buyers in the U.S. are first-time buyers. The decision to purchase your first home can be stressful but it’s easier if you know what pitfalls to avoid. Here are some first time home-buying mistakes.
According to a Zillow analysis, today’s first-time home-buyer is about 33 years old with an average income of about 54-thousand dollars. As a first time buyer, you want to avoid rookie mistakes.
Mistake number one: not getting pre-approved for your loan. Experts say getting a loan is a long process and if you wait to loan shop, you might miss out on a quick deal for a house you love.
The next mistake: not anticipating extra costs. Origination fees, taxes, appraisals, and insurance can add up. Any online mortgage calculator can estimate your total closing costs. Just input your location and budget.
The next pitfall: not hiring a realtor. There’s no charge if you’re a buyer and they can negotiate for you. Find a realtor who is willing to go to bat for you and has a good reputation.
Mistake number four: not getting a home inspection. They can run about $450, but if you don’t do it, you could be responsible for problems that come up after closing.
The most important tip to first-time home buyers is to slow down.
Real Estate Attorney, Edward Storey, JD, said, “Do a little research. Make sure you give yourself time, the effort, energy; it’s a process, it’s a stressful process, frankly. You’re talking about a lot of money, and probably your biggest investment, so you want to make sure that you’re comfortable with it and that you make the right decision.”
Legal experts also suggest getting an attorney to look over all of your documents before signing the contract. Don’t wait for the closing.
Contributors to this news report include: Julie Marks, Producer; Tony D’Astoli, Editor and Videographer.