First Time Home Buyers, Advice & Biggest Mistakes To Avoid
Today, we are going to be talking about mistakes that buyers make all the time that costs them thousands of dollars, or even losing out on their dream home, and we are going to get started right after this.
Hi everyone. Welcome back to my channel. I am Ledeana Strand with Homes By Strand, powered by RE/Max Town and country in Port Orchard Wa. If this is your first time here, please consider subscribing to my channel, and hitting that bell notification down below to be kept up to date on all things real estate in Kitsap County, Wa. Pro tip,you are going to want to stay until the very end of this video, as I will be sharing with you on how to get your FREE copy of my Ultimate Home Buyers Guide.
Today we are going to be talking about the five most common mistakes that first time home buyers make. Number one, taking on new debt while you are under contract. When you guys are first starting the process of purchasing a home, you’re going to be working with a lender to find out what type of loan you qualify for, how much, what type of interest rate, and they’re going to be looking at different things to see what you qualify for.
One of those things is your debt to income ratio, how much debt is going out and how much income is coming in. So, if you go out and you buy a brand new car or you go and buy a whole bunch of brand new furniture on your credit card, it changes your debt ratio. Therefore, you may not qualify for that loan anymore because you accrued new debt. So as exciting as it is to get a new home, do not go out and make any big purchases, wait until your home has been closed on, and you are officially in the house.
Number two, being unrealistic and inflexible. What I mean by this guys, is that there’s no such thing as a perfect home. When you find the home, there may be some things that you’re just going to have to compromise on. So, things you can think about would be, your commute time to work.The type of school districts, how big the house is. Some of these things might fluctuate in different areas but, you have to realize that you’re going to have to compromise on something, but you can find a home that has most of everything that you want. Also, focusing on small things such as paint color, the condition of the carpet, the door knobs, things that you can actually change, and that you have power to change on.
What you really want to focus on is the things that you can’t change, like the layout of the house or the structure of the house, or where the house is located. Those are the things that you actually want to focus on. Not the really small minute details that you actually have the capabilities to fix and they are relatively inexpensive.
Number three, not getting pre-approved. I know guys it is so exciting to go look for a house, but what you really want to do before you start house hunting is get pre-approved.
You want to know what type of loan you’re going to get, what type of interest rate. If there’s something that you can work on so that you get a better interest rate, your payments are lower.
If you guys go out and you start house hunting and you’re looking above your price range, it’s going to be heartbreaking once you find out that you can’t afford that house, so you definitely want to get pre-approved, one to make sure that you know your budget, Two, If you need to work on something, you can figure out that timeline of when it would be best to purchase a home.
Number four, relying on Zestimates. We have buyers all day long that tell us, well, Zillow, this property pulled up for this much, and Zillow said this and Zillow said that, guy’s, Zestimates are so inaccurate. They are not the best tool to use to base the value of a home.
The reason why is because they really don’t have up to date information. They don’t know the condition of the property, they don’t know the neighborhood, the views that the property has. So, that’s a really, really inaccurate tool. I tell my buyers to stay away from it and I would advise you guys to do the same.
Number five, working with online lenders. Sometimes looking online, guys, can lead to many, many problems. I know you want to find the best interest rate online, and you want to try and get that information as soon as possible, but the best ideal thing for you to do is to work with a local lender. The role of the lender is such a huge factor in the home buying process. You guys want to work with a lender who is responsive and communicates well, and also gets the paperwork done on time.
What I recommend to all of my buyers is to find a local lender. Number one, they’re going to be in the same time zone so you don’t have to worry about if this person’s three hours behind or if they’re three hours ahead. You don’t have to worry about any of that because they’re in the same time zone. Usually they’re very responsive because they’re actually in your area. Local lenders know about laws and regulations in your state and they actually can educate you about incentive programs that can help you.
Okay guys. So those are the five most common mistakes that first time home buyers make. And I hope that I helped you learn something today and hopefully avoid those mistakes if you have not purchased a home yet. Please give this video a thumbs up. If you did learn something today, please comment below. And if you guys enjoyed this video, please subscribe to my channel, and click that notification bell.
As promised, I have included the link in the description below for you to download your free copy of my Ultimate home buyers guide, that will walk you step by step through the home buying process. So, don’t forget to download it before you leave.
And I will see you on the next one. Make it a great home buying and selling day!