Buying a home for the first time can be intimidating. Several resources are available to help buyers get through the process without a hassle. Real estate advisors, mortgage lenders, and lawyers can all provide helpful advice. However, first-time buyers should also be wary of some of the most common setbacks during a purchase process.
Get a mortgage pre-approval
Getting a pre-approved home loan is the easiest way to find out exactly how much you’re going to be able to spend on buying a property. Another advantage of doing this step ahead of time is that any credit problem will come out right from the beginning. The process will speed up once you find a home you like, and sellers will see that you are ready to buy.
Expect to pay more than what you previously intended
Home shopping always comes with unforeseen expenses, even for the most prepared buyer. Needs such as housing inspections, appraisal costs, additional bank expenses, property taxes, and legal fees must be paid and are not always evident at the very beginning.
Get an affordable mortgage
First-time buyers who are looking for the perfect home often want to stretch their dollars in whatever way they can. Before you commit to something you can’t pay month-to-month, look for a mortgage payment of no more than 30% of your monthly income.
Avoid looking for deals
While looking for an offer is good for some items, real estate doesn’t fall into this category. Expect to pay what a house is worth unless the market has changed dramatically in your favor, in which case you still have only a certain margin of success.
Consider the pros and cons of homes that need repairs
Many of the new homeowners are looking for lower-priced homes that will require them to put some hard work on repairs. Although this option is ideal for some people, you should always be careful and decide whether this option is right for you. Homes that need repairs require a lot of work, money (many unforeseen costs) and patience. If you decide to follow this path, do a lot of research before you buy.
If you need the help of a real estate agent contact us at The Coto Group (305.422.9286) or follow our social media channels @TheCotoGroup on Instagram, Twitter, Facebook, YouTube, and LinkedIn to know more about Real Estate all over Key Biscayne and Brickell. With over three decades of real estate experience, The Coto Group surely knows best.