Financial mistakes to avoid for first time homebuyer.

The home buying process can be overwhelming and navigating through the financial pitfalls can be an arduous endeavor. Here are some financial tips to remember when buying your first home.

1. Improve you credit score. Review your credit score before applying for pre-approval. Pay down your debts and don't make any large purchases that will drastically alter your score.
2. Get pre-approved. Pre-approval usually means the lender is ready to make you a mortgage loan after thorough research into your finances. Pre-approval gives you an accurate idea of what properties are in your price range, and could give you a competitive edge in negotiations.
3. Set a realistic down payment. Don't put all of your savings into your down payment. Although a down payment of more than 20% of the overall cost of the property may save you from paying mortgage insurance, you may want to think twice about leaving yourself without a cushion.
4. Think big picture. Consider a long-term budget and factor in all additional expenses of homeownership. Taxes, utilities, home insurance, maintenance, and even pricey repairs should be part of your budgeting.
5. Consider re-sale value. Even though future resale is the last thing on your mind when buying your property, it is a practicality to consider. A home that appeals to the majority of buyers, in an ideal location with a reputable school system may be a wise investment.
6. Consult with a financial profession and mortgage consultant for more guidance.

Avoid these common mistakes when buying a home

Home buying can be a frustrating experience, but choosing a competent real estate agent to guide you through the 

process will likely save you time and money. Here are some tips to avoid costly mistakes.

• Get pre-approved BEFORE you start your home search. Pre-approval will give you a realistic price point when viewing potential homes and puts you in a better position to make a serious offer.
• Research the neighborhood. Learn about crime statistics, schools and amenities within your potential town.
• Look beyond the décor. Focus on the structure itself, square footage and layout. Look beyond the taste of the current homeowner, and remember you are buying the actual house.
• Never skip the inspection. Your home is likely the biggest investment you will ever make, a home inspection is necessary to ensure it is a sound structure or at the very least, make you aware of any defects.
• Give yourself an out. Make sure there are contingencies (such as financing or inspection) in the contract so you can back out of the deal and recoup your deposit.
• Don’t buy the most expensive house on the block. The lower home values around your property will negatively affect your property's value.
• Keep resale value in mind. It may be difficult to envision selling a home that you have yet to live in, but remember to consider long-term property value, location and overall mass appeal, when viewing a potential home.

And remember to call our offices today so that one of our knowledgeable sales professionals can help guide you through your home buying experience.