Buying a home is exhausting, exciting and quite scary. Your aim is to find a place that you love and can afford. It may sound simple, but the truth is many newcomers to the property market dash their dreams by making some first time home buyer mistakes. Here are two common ones – don’t follow suit:
Not Being Realistic About What You Can Afford
What you can actually afford and what the bank thinks you can afford are not necessarily the same. If you haven’t already got a budget, create one. List all your monthly expenses, with the exception of the rent you’re paying, including student loan payments, vehicle costs, groceries, credit card payments, health insurance, child care and so on.
Don’t forget those major expenses that occur yearly such as your annual vacation or insurance premiums. Make an educated estimate for property taxes, utilities, and maintenance costs of the new home. If you aren’t sure what to expect, ask your realtor. He or she should have a good idea of these costs. Subtract all the expenses from your take-home pay, and you’ll see what you can afford as a first time home buyer.
Not Obtaining a Pre-Approved Mortgage
What a bank is willing to lend you as a first time home buyer and what you think you can afford might not match up, especially if your income is unstable or your credit rating is poor. So be sure to obtain a pre-approved mortgage before putting in an offer on a home.
Without pre-approved financing, you’re wasting your time, your agent’s time, the seller’s time, and the seller’s agent’s time, if you sign a deal and then discover that the bank won’t approve a mortgage for you. It may also be that the bank is only prepared to give you a smaller amount than the home’s cost.
Not getting pre-approved financing could also impact your ability to negotiate a deal to purchase a home. Many sellers are hesitant to accept offers from buyers that don’t have pre-approved financing.
The Buyer’s Agent of Asheville is dedicated to help clients find homes they can adore and afford. With its team of 10 experienced real estate brokers, The Buyer’s Agent of Asheville has been loyally assisting home buyers in the Asheville, North Carolina area. We’re focused to search for ideal homes without distractions, shady deals, and conflicts of interest. Please make an appointment to visit our offices at 82 Patton Ave, Suite 211, Asheville (map) by calling our 24/7 service number: (828) 210-4663.