3 Mistakes Many First-Time Homebuyers Often Make

Posted on: 26 January 2016

Buying a home is a major decision in your life. It takes a lot of planning and forethought to make sure you get exactly what you want. After all, this is a long-term commitment that you can't exactly walk away from in a year or two. Because of that, you need to spend adequate time going through everything before you, and you need to make sure you make a decision that you are going to be happy with for years to come. Here are three common mistakes you want to avoid making as a first-time homebuyer.

Not being ready to compete with other buyers in an all-cash market.

With the housing market being as competitive as it is, many sellers are more apt to take a cash offer than they are to wait for someone to get their financing in order. Cash offers mean they have a guaranteed sale and can close rather quickly, which is important when dealing with foreclosures and short sales. If you aren't able to compete with these individuals, you could find yourself losing out on some great houses along the way. Being financially prepared for the ever-changing fast-paced market will go a long way in helping you get the home you really want.

Putting your vehicle first.

When it comes to getting approved for a mortgage, lenders are going to look at things like your debt-to-income ratio to determine whether you can afford the mortgage or not. If you go out and buy a vehicle before purchasing your home, the lender might not approve you for as large of a payment because it looks like you are more tapped out. You are better off waiting to purchase a vehicle until after you have secured the home. This ensures you get the most home possible for your budget.

Forgoing the home inspection.

Many people overlook the importance of the home inspection. While it might cost you a couple hundred bucks out of your pocket right in the beginning, it could end up saving you thousands down the line. If something is uncovered during the inspection, you can negotiate the repairs with the seller to make sure you aren't stepping into something you cannot afford. That couple of hours the inspector will spend inside the home could make a world of difference to your pocketbook.

By not making one of the mistakes above, you can make sure you get the home you want at a price that is going to work for you and your needs. Contact a company like Central Virginia Realty to start searching for your dream home today!