First-time home buyers have plenty of obstacles to overcome. There is an intricate maze of details that need to be carefully navigated. Following are five obstacles that first-time buyers have to overcome when looking to buy a home:
Saving enough for the down payment is not sufficient. Closing costs must also be considered. Closing costs are additional fees such as the lawyer’s fees, escrow charges, appraisal fees, financing fees and utility adjustments. A good rule of thumb is 3% to 3.5% of the purchase price will cover the closing costs. So for a $200,000 home with a 5% down payment, you would require approximately $16,000 to cover both the down payment and closing costs.
Many first-time home buyers overlook the preapproval process. This mistake can cost you your dream home. That’s because you may spend hours and hours driving around and seeing homes – only to find out too late you can’t afford or can’t qualify for a mortgage loan. Visit a mortgage professional FIRST to see what kind of mortgage you qualify for and closely examine the actual cost of the money you must borrow to purchase a home.
Use a Real Estate Agent:
Some home buyers think they can go it alone. Sure, it can be done. But buying a home is a complex legal process, fraught with twists, turns and traps set by sellers who have a professional representing THEM. A buyer’s agent can represent YOU and has the knowledge and know-how to make your home-buying experience a happy one.
Know the Difference Between What You Need and What You Want:
It is fine to dream big, but the home-buying process can be very frustrating when you have a $200,000 budget and $500,000 taste. It is essential to the buying process to identify what your home must have and what you would like it to have.
Believe in Yourself:
It seems that when you are buying your first home, everyone has an opinion about the purchase. This can be confusing because unsolicited advice clouds your decision. Believe in your ability to assimilate the facts, look at the property and decide what to buy.
If you need help with these or any other first-time buyer hurdles, just reach out to us! We’re always happy to help.