Skip to main content

5 Mistakes to Avoid When Buying Your First Home

May 26, 2017 12:00PM ● Published by Melanie Heisinger

Right at Home

 

Buying a home for the first time is comparable to the first time you ride a bike. You can learn about how it works from your parents and observe it from a distance, but you really won’t know the ins and outs until you actually sit down on the bicycle and start riding.

Like most beginners, first-time homebuyers will likely make a few mistakes as they initially go through the home-buying process. Here are five mistakes first-time homebuyers often make, and how to best avoid them.

 

1. Waiting too long to make an offer

One of the biggest mistakes first-time homebuyers will make is simply waiting too long to get into the real estate market, according to Jay Carr, a senior loan advisor for RPM Mortgage in Newport Beach, California. Because the rates look like they’re going to continually increase over the year, it’s important for buyers to get in as early as they can so that they can avoid paying more later on. If you see a home that you’re interested in and you have been thinking about entering into the market for some time, don’t hesitate too long.

 

2. Trying too hard to get less than the asking price

Many first-time buyers are younger, tech-savvy and are comfortable researching homes on their own. Overall, these are positive traits in a buyer. However, because these buyers are typically self-sufficient when it comes to other purchases, they often think they know best when it comes to what price they want to offer.

“Buyers rely too much on what they see on the Internet instead of the good advice of what they would hear from a real estate agent,” says Carr.

Of course sometimes it pays off to be bold in an offer (in that you get to pay a lot less than the asking price), but often it can end up that the buyers are negotiating themselves out of a deal. It’s important to pay attention to your real estate agent, who is a seasoned professional, when it comes to putting in an offer so you don’t offend the seller and lose the house you want.

 

3. Not exploring all your financing options

Carr says many first-time buyers have grown up thinking that they need to save up for a 20 percent down payment before they can enter the housing market. While it is always great to have as much money to put down as possible before you purchase a home, it’s important to consider many of the new options available today.

One option is a home ownership investment such as the Unison HomeBuyer program, which typically provides up to half of the down payment you need. The money is an investment in the home, not a loan, so there are no interest charges or monthly payments. This new type of financing - which works in combination with a traditional 30-year mortgage - can offer greater flexibility and control to the homebuyer. It allows you to cut the time needed to save for a down payment in half, lower your monthly payments and avoid mortgage insurance, or increase your purchasing power so you can buy the home you want.

 

4. Wanting the dream house right away

Everyone has a picture in their minds of what their first home will look like. Whether you envisioned a craftsman bungalow near all your favorite bars and restaurants or a classic ranch-style home with tons of land and no neighbors, chances are you’re going to have to trade up to that dream home from your first starter home.

“If you really like the house, you probably can’t afford it. If you think the house is just kind of below what you want it’s probably right in your price range. Get in the market rather than wait to get the dream house,” says Carr.

Carr advises those in the hunt for their dream home to focus on becoming homeowners now and to wait on their dream home until they have built up equity and have higher incomes in the future.

The median tenure of a homeowner in 2017 is about 10 years, but for the 20-year period before that it was only six. Believing that this won’t be your last house can take a bit of pressure off the home being perfectly suited for you.

 

5. Not having your own representation

Another mistake a first-time homebuyer can make is not having their own representation (meaning that they use the seller’s agent as their own buyer’s agent). While this is not always a bad situation, Carr cautions buyers to be careful that they have selected a good and trustworthy real estate agent that is looking after their best interests. In other words, you don’t want to pay an unfair price because someone is looking after their own best interest.

 

(Courtesy of BPT)

Like what you're reading? Subscribe to Mansfield Magazine's free newsletter to get regular updates



Embed this content on your website

Embed
In Print, Today Financial Matters Tips
  • Exhibit: Seeing is a Nervous Habit

    09/20/2017
    10:00AM — 05:00PM

    A retrospective of Kenda North’s work. The exhibit will be accompanied by a group exhibition of f...


  • Little Naturalist

    09/20/2017
    10:30AM — 11:15AM

    Nurture Nature- Children ages 3‐5 will learn about nature through discovery. We will read, sing, ...


  • Home School Nature Class

    09/20/2017
    01:00PM — 02:00PM

    Join us for science and nature related lessons and guided investigation of Oliver Nature Park. Le...


  • Exhibit: Seeing is a Nervous Habit

    09/22/2017
    10:00AM — 05:00PM

    A retrospective of Kenda North’s work. The exhibit will be accompanied by a group exhibition of f...


  • Texas Coin Shows in Grapevine

    09/22/2017
    02:00PM — 06:00PM

    Add to your collection at the Texas Coin Shows on Sept. 22-24 at the Convention Center, 1209 S. M...


  • Maverick Home Volleyball Game

    09/22/2017
    06:30PM — 08:30PM

    Volleyball match being hosted at The College Park Center by the UT Arlington Mavericks Collegiate...


  • Exhibit: Seeing is a Nervous Habit

    09/24/2017
    01:00PM — 05:00PM

    A retrospective of Kenda North’s work. The exhibit will be accompanied by a group exhibition of f...


  • Intro to Fishing

    09/24/2017
    06:00PM — 07:00PM

    Ready to cast your bait and reel in the big fish this summer? Join us for beginning fishing class...


  • DFW Solar Awareness Day

    09/25/2017
    12:00AM

    Hello! We are putting together a day for solar awareness in the DFW area! Talk to your friends...


  • SusieCakes Grand Opening Happy Hour

    09/25/2017
    03:00PM — 07:30PM

    Enjoy the grand opening of SusieCakes in Fort Worth with a week of happy hour deals! Monday 9...


  • Kayaking

    09/26/2017
    09:00AM — 10:30AM

    Take a break from hiking trails and get on the water! We will go out in dual‐seated kayaks along...


  • Exhibit: Seeing is a Nervous Habit

    09/26/2017
    10:00AM — 05:00PM

    A retrospective of Kenda North’s work. The exhibit will be accompanied by a group exhibition of f...


  • SusieCakes Grand Opening Happy Hour

    09/26/2017
    03:00PM — 07:30PM

    Enjoy the grand opening of SusieCakes in Fort Worth with a week of happy hour deals! Monday 9...


 

Image title
Mansfield Area High School Sports

Community Champions