A recent Bankrate survey found that around 63% of millennials, mostly first-time homeowners, regretted having bought a new home. On the overall, almost half of American homeowners expressed buyers remorse. Here are some of the wrong moves they made, as well as solutions to avoid them.
Failure to take professional advice
Letting go of a huge sum of money can make some first-time home buyers wary even of people they hired to make sure they are going about the whole process correctly. But if you did your research in choosing the right person for the job then trust in the process and in your agent. Know that they are the experts in what they do and that they will work with your best interests in mind.
Dont be afraid to ask questions for advice that may seem counterintuitive. Most agents encourage their clients to ask questions to make sure everyone is on the same page and is comfortable with strategies the agent will be using on the clients behalf.
Not getting pre-approved
Many first-time buyers are unaware of the necessity of a pre-approval in buying a home. A pre-approval is essentially a buyers proof that they are capable of paying a home mortgage loan. With this, a seller will be more willing to negotiate with you for their home. It also gives you an edge over other bidders for the home you set your eyes on, especially when youre already done with your pre-approval while theyre still going through the process.
Getting pre-approved means making sure your financial standing is in order. This means a lender has carefully studied your credit, income, and other assets and has deemed you worthy to be granted a loan. Note, though, that pre-approval letters are valid for a limited period, ranging from 60 to 90 days. Make sure to schedule the estimated release of your pre-approval letter as close as possible to when you begin house hunting.
Buying beyond their means
Any home buyer newbie or not will always want to get the home they always wanted. And sometimes, this home of their dreams could be quite pricey.
From the get-go, you were already made aware of your financial capacity in relation to buying a home through the pre-approval. As you go along the process, youll also realize that a houses price tag wont be the only amount you will be paying. There are many other financial considerations like closing costs, homeowners association fees, renovations, and the like. Plus, there are also personal circumstances that could weigh in on your finances like sudden unemployment or a family emergency.
Throwing all cares to the wind and proceeding on buying a home thats outside your price range may end up with you barely able to keep up with its maintenance needs and drowning in steep mortgage payments youll have to pay regularly. At worst, you may even risk losing the house to foreclosure.
The bottom line is this: bat for a home that is well within or even lower than your means. As a newbie homebuyer, youll still have the chance to sell the home several years along the line in exchange for a better one. Take things gradually youll get that home of your dreams yet.
To avoid the many pitfalls that come with being a first-time buyer, get in touch with us, the Metropolist Group. Call us at 206-623-5118 or send us an email at [email protected]. Trust us to guide you through the minefield of the real estate market and you will have nothing to regret.