According to the dictionary, a mistake is an error resulting from
deficient knowledge or carelessness. While we can't do anything about
carelessness, when it comes to counseling first-time homebuyers, the
real estate agent is a tremendous resource to help overcome knowledge
deficiency.
That homebuyers lack knowledge about the process only makes sense
when you understand that shopping for a home may be a once-in-a-lifetime
experience for some. Certainly, it's not something most Americans do
frequently. The process is foreign and the pitfalls are hidden. This is
why it's so important to find the right real estate agent to assist you
along the way.
Let's take a look at some of the most common first-time homebuyer mistakes.
Mistake 1: Not Being Clear About Money
Going into a home purchase with your eyes closed to your finances is
probably one of the biggest mistakes you can make during the process.
Nobody likes unpleasant surprises, yet that's what you open yourself up
to when you are ignorant about where you stand financially.
If you are unsure about your credit-worthiness, order your credit
reports from the three major credit bureaus. By law, Americans are
entitled to one free report from each bureau every 12 months. You can
order your free reports at AnnualCreditReport.com, the only authorized
website, according to the Federal Trade Commission.
Look for errors on the reports and dispute any erroneous information.
Pay off what you can to help lower your debt-to-income ratio.
Then, see a
lender to determine exactly how much you can borrow for a home.
Finally, when you have that figure, don't be tempted to shop for
homes priced at the limit. Give your post-purchase budget some monthly
wiggle room by purchasing at the middle of the price range, or a bit
more. Go to
http://www.batonrougerealestatedeals.com/finance/ for information about our preferred mortgage lender in Baton Rouge, Louisiana.
Mistake 2: Not Being Clear About Your Wants and Needs
While you may not get everything on a wish list, it's a good idea to
compile one – especially if more than one person will be living in the
home.
Understand that your wish list isn't set in stone and you can plan on
it changing once you start viewing homes. During the home-shopping
process, you will get a better idea of which items are feasible with
your budget and which will have to be struck from the list. Knowing what
you want and need in a home is vital to your long-term satisfaction, so
it's worth the time it takes to sit down and make a list.
Don't neglect the neighborhood wish list either. Do you need to be
close to public transportation? If you'd like a family neighborhood with
lots of kids for yours to play with, put that on the list.
The bonus to getting clear on your wants and needs is that when you
share the list with your real estate agent, your time won't be wasted by
viewing homes that don't fit your criteria.
Mistake 3: Not Reading the HOA Documents
If the home you decide to make an offer on is managed by a homeowners
association, you'll be presented with a stack of paperwork to read over
and approve. These are the HOA documents and, although terribly boring,
they hold a wealth of valuable information that you must be privy to
before making the final decision to purchase the property.
These documents govern how you can use your home, and they give you
an idea of how much and how often your fees might rise. You'll learn
about common and ongoing problems the association deals with and how
financially solvent the association is.
Don't be like the couple that purchased a condo without reading the
HOA documents and found out, three days after closing, that they - along
with all the other homeowners - were being assessed $7,500 to remedy
construction defects.
If you don't feel that you can read and understand the information in
these documents, it's important to hire an attorney to help you wade
through them.
Mistake 4: Making Big Changes
The best part of the home-purchase process is that point during the
transaction when inspections are complete, all the contingencies have
been removed, and it feels like smooth sailing to the close.
Unfortunately, this is a danger zone for rookie homebuyers. This is
typically when they start picturing themselves actually living in the
home and the urge may be overwhelming to shop for furniture, appliances
and other big-ticket items.
Just before closing, many lenders perform what is known as a "soft
pull" of your credit reports. It's called "soft" because it doesn't
impact your score in any way. It's the lender's way of making sure all
the circumstances under which it approved the loan haven't changed.
Any big changes you make, such as large purchases or getting a new
job, may derail or delay the purchase. If the new debt you've taken on
is substantial enough, it may change your debt-to-income ratio and you
may be forced to reapply for the mortgage.
Keep your pocketbook closed and remain on your current job until you walk away from the closing table.
Mistake 5: Waiving the Home Inspection
Although foregoing a home inspection was unthinkable a few years ago,
in a seller's market where multiple offers are common, it's tempting to
agree to waive the home inspection as an incentive for the seller to
pick your offer. It's also not very wise.
A professional inspection, even of a newly constructed home, may be
the only way you'll know whether you're buying a lemon or a plum - a
money pit or a smart investment.
When you forego a professional home inspection, you're essentially
buying the home "as is." Without the inspection contingency, the buyer
waives his right to ask for repairs or money to make the repairs.
Waiving the home inspection is never worth the risk.
Knowing how much home you can afford is paramount to a successful
home purchase. Making the decision to remain within a certain budget,
doing all you can to clean up your credit to get the lowest interest
rate possible, and becoming clear on your desires and expectations all
help to make the home-buying process as error-free as possible. The Louisiana Homes and Land Team has a list of preferred inspectors that cover the Baton Rouge area. Give us a call at 225-366-8656 to receive a copy of our vender list.
The Louisiana Homes and Land Team with Keller Williams is highly experienced with working with first time home buyers. Our service is completely FREE to buyers.
Click here to see what our clients have said about us.
Call 225-366-8656 to set up a Free Buyer Consultation and begin your home search.
Louisiana Homes and Land Team
Keller Williams Realty Red Stick Partners
Hire a positive and proactive Team of Realtors to help you find your next home! Call or text
(225) 366-8656 for information on Buyer's Representation Services
(NO COST TO HOME BUYERS)
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12265 Parkwood Dr., Baton Rouge, LA 70815
Home's Description: Classic beauty in established Sherwood Forest Subdivision. This 4 Bed, 3
Bath home has been very well cared for. You will enter this home in the
foyer, and to your right you will see the Formal Dining Room. Upon
walking through the foyer you will immediately notice the natural light,
oversized living room, brick hearth fireplace, and views of the huge
covered patio. Kitchen features a breakfast bar, wall oven, electric
cooktop, and lots of cabinet storage. Laundry room and half bath are off
of the rear entry door. Outside is a fully fenced backyard with a huge
workshop and covered parking for four cars. Home received a new roof in
August 2014! This home is a must see. This home has it all! To see more information and photos, click here.
