5 Huge Mistakes You Can Make as a First Time Homebuyer
by Dan Wolf
on Friday, May 29th, 2015 at 8:13am.
It's a great time to invest in a new home. In 2014, the housing market was on fire, and people all over the country (including Alaska) looked and found great houses for their families. We are confident 2015 will be very much the same.
But, just ask anyone with experience, home buying can be a tricky, daunting affair, full of anxiety and convoluted paperwork. If you do it wrong, it's much like buying a clunker from a shifty car salesman. Except in this case, you're investing exponentially more than on a car, and you could be stuck with it for a very, very long time.
Here are 5 huge mistakes you can make as a first time homebuyer.
1. You buy a home and never consider your options. Like, renting. Financially, buying a home is a huge commitment, and some people shouldn't take that leap in their current situation. But when people take it too far, and buy when renting is a better decision for their situation, they're making a big financial flub.
2. You have never heard of "debt-to-income-ratio." Which isn't entirely your fault, but knowing how much debt you have in conjunction with how much money you make is one of the first aspects lenders look at. If you are loaded down with debt, but make all of your monthly payments, consider cleaning up your debt "portfolio," and reducing your bills before investing in a home.
3. Skipping the home inspection should never be an option. A home inspection is your golden ticket that everything in the home is up to code, on par, and won't break in the first five years. Never skip the home inspection. Those who do, will live to regret their decision.
4. Shopping for a home on the Internet is convenient and fun, but trusting websites that curate home listings can be a big mistake. Websites like Trulia and Zillow simply use past statistics, old selling amounts, and neighborhood data to provide you with "cost at a glance." Never trust it outright. Contact the agent for real, accurate information.
5. Becoming emotionally invested in buying a specific home can get you into lots of trouble. Just because you "really love" a home, doesn't mean that someone else with more money won't beat you out. Check your emotions at the door, and the home-buying process will run much smoother.
For more information on buying your first home and how we can help, please contact us any time, at 907-248-9653 or visit us online at www.anchoragehomesearch.com.