First-Time Homeowner Mistakes to Avoid

Despite the challenges brought along with the pandemic, the current home buying market in Ohio is hot! We are still in a seller’s market which means many offers are going above the asking price. Low interest rates are keeping demand high for home ownership. Thinking about buying a house? Here are some common mistakes to avoid:

Trying to do Everything Alone

Buying a house is one of the largest, if not the largest financial transaction you will make. One solid way to protect yourself from pitfalls is to hire a buyer’s agent who will be your guide in purchasing your home. Buying a house can be complicated and competitive. You will want a buyer’s agent to explain the steps, help you negotiate, and answer any questions you may have throughout the stressful and exciting process

Not Getting Your Credit High Enough

Taking a little bit of extra time to boost your credit could be worthwhile. In some cases, just 2 months of waiting is enough to improve your credit to the point where it could lower your monthly payment.

Not Understanding the Real Cost of Home Ownership

Thinking about a rent payment and the fact that no equity is earned from it each month can really press someone into the thought that they should definitely buy their own home. It is important to remember that there are hidden costs outside of the mortgage payment. If the house is larger than the space that was being rented, you have to factor in more heating and cooling costs. Unforeseen maintenance expenses also become responsibility of the homeowner and sometimes they can really add up! There are also taxes and sometimes H.O.A. fees to factor in. Make sure that when you are comparing the costs of renting versus owning, that you are thinking about all of these hidden expenses.

Not Pre-Qualifying

Before you get too far ahead of yourself and browse online listings, make sure you can get the loan you will need. Bridge offers a variety of mortgage loan options. You can learn more by clicking here.

Foregoing a Tour, Final Walk Through or Inspection

Do not rely on online photos alone. Pictures can be deceiving. You should get a real feel for the house by walking though. If you feel uncomfortable touring homes during the pandemic, your realtor would likely be willing to take a video for you. You should also get a feel for the area. You can make all of the changes to a house that you want once it’s yours, but you can’t change the location. Aside from you taking a look at the home and location, you should also have a thorough professional home inspection completed to make sure you are getting what you pay for.

These are just some common pitfalls that can be avoided. When you are ready to buy, Bridge has mortgage resources available. Have some questions before you get started? Feel free to text our lending department 614.466.4988. You can also give us a call at 800.434.7300.

 

 

 

 

Source:

https://www.rd.com/list/buying-your-first-home-mistakes/