Be Prepared! Top 10 Mistakes Homebuyers Make

Buying your first home is one of the most exciting times of your life. Don't rush in without doing your homework!

Looking at Homes You Can't Afford.

Unless you start out knowing how much house you can afford, you’ll risk falling in love with one you can't. Get pre-qualified, do a reality check and start looking in your price range. Stick within your budget.

Only Looking at Foreclosures.

Saving money is a noble intention, but don’t assume that the amount the previous owner owed is what the house is really worth. Also, make sure the house isn’t in disrepair from being vacant too long, or the money you save up front could be eaten up by repairs.

Failing to Consider Resale Value.

The facts are that most first-time homebuyers will sell within 5 to 7 years. How will your home look to potential buyers? Will you be able to fix all the things that might be seen as negatives?

Not Taking Maintenance Into Account.

Paying the mortgage is just the beginning. All those repairs your landlord used to take care of will now be your responsibility. If your home warranty doesn’t cover it (and you did get one, right?) then your wallet will have to.

Going it Alone.

The work involved in buying a home should not be taken lightly. This is your most important investment, so consult a professional. Consider a REALTOR® who specializes in helping buyers, such as someone with the ABR® (Accredited Buyer Representative) designation.

Forgetting to Add Taxes to Your Budget.

Don’t assume that being a homeowner will give you enough of a break from Uncle Sam to pay your property taxes each year. Homes appreciate in value over time, and that means the property taxes you pay now will go up, too.

Skipping the Home Inspection.

Even if the home you’re looking at is brand new, don’t sign that contract until you get a clean bill of health from an independent home inspector. At the very least, you’ll get a report that shows potential issues you can take steps to avoid if you do decide to buy.

Putting All Your Hopes on One Offer.

Chances are if the house is good enough for you, it’s good enough for a couple other buyers, too. Keep your options open and don’t lose hope if your first offer isn’t accepted.

Going Overboard on Upgrades.

Slow down, weekend warriors: additions and other improvement projects should be planned out over time, as your budget allows. Upgrade for yourself and not for what you think future buyers want, because it doesn’t always add value.

Not Insuring the Process as well as the House.

What if you lose your job while in the process of buying a home? A mortgage financing contingency clause protects you in such an instance, so you won’t be trapped in a contract you can no longer honor.