General Information - Six Mistakes to Avoid As A First-Time Buyer



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Six Mistakes to Avoid As A First-Time Buyer

High affordability continues to push potential buyers toward becoming homeowners, but there are numerous mistakes first-time buyers make throughout the process. Credit.com has compiled a list of the six most common errors homebuyers make, so you can avoid these mistakes.


High affordability continues to push potential buyers toward becoming homeowners, but there are numerous mistakes first-time buyers make throughout the process. Credit.com has compiled a list of the six most common errors homebuyers make, so you can avoid these mistakes.

1. Trying to fix credit right before you buy - While repairing your credit can help you get a lower mortgage rate, the source says it is important to consult your mortgage loan officer before making any major moves. This becomes a problem if you are using the money you've been saving for purchasing a home to pay down your credit card balances. This can certainly improve your score and other credit factors, it can leave your funds short when it's time to make a down payment and cover closing costs.

2. Not researching potential financing - Having knowledge about the different types of mortgages available is crucial for first-time buyers, and securing financing before beginning your actual home search can make your offer more attractive to sellers. Researching ahead of time and even getting preapproved or prequalified can be an indication that you are serious about the investment and help you determine an accurate price range.

3. Assuming a real estate agent has your best interest in mind - In most home sales transactions, the real estate agent is paid by the sellers, which the source says may impact their options. To avoid this from happening, you can contract a real estate broker to find you a home, otherwise, an agent will likely be looking out for the seller, which could mean little negotiation on prices. While they will likely still show you possible houses, they probably won't hesitate to give it to the first person to make a competitive offer.

4. Not thinking about the future - This common error includes not thinking about a home's resale as well as your own personal finances. When looking at homes for sale, be sure they have features that will be attractive to buyers in the future, should you decide to sell it. First-time buyers should consider what their life could be like in 10 years, says the site, to select the best mortgage type as well as size and location.

5. Being too eager - Finding the perfect home that comes with an eager seller may seem good, but the source says it's important to play it cool. Being upfront about how much you are willing to spend without attempting to negotiate and expressing how much you like the house gives the seller more courage to keep their home priced higher. Expressing your excitement and ability to afford the home should be done to your agent, but being too eager the seller can ensure you're paying more than you should.

6. Skimming through paperwork without thoroughly understanding it - As a first-time buyer, you likely haven't seen closing contracts and the other paperwork that comes with purchasing a home. The documentation that comes with being a homeowner can be confusing, so the source suggests having it overlooked by a real estate expert, lawyer or other professional who is familiar with the home buying process.

For consumers interested in new homes for sale in Florida, it's important they know how to move through the process. GL Homes can help consumers know what the latest trends are for homes in Florida so they know exactly what they want in their new home.