Buying a home is complicated, and it’s easy for even seasoned buyers to make mistakes. If you are a first-time buyer, it’s, even more, likely that you will do something wrong if you don’t do your homework. Here are some first-time homebuyer mistakes you want to try to avoid.
Not working with a real estate agent
Since real estate agents make their money off of sellers and rarely charge a potential buyer anything, there’s no reason not to work with one. At worst, an agent will ask you to sign an agreement that you will use him or her for any purchase you make, but in most cases agents work with buyers with no formal agreement at all. A real estate agent can help you find the best homes for sale in irvine and help you with your closing.
Failing to check your credit score
The most important factor in whether you get a mortgage and how low of an interest rate you get is your credit score. No matter what your income is or how much of a down payment you have, if you have a bad credit score, you won’t get a good loan deal. Before starting your search for a home, you should make sure you know what your credit score is.
Not getting pre-approved
Whether you are a first-time homebuyer or are on your fourth or fifth home, it’s always a good idea to get pre-approved for a mortgage. Not only does it tell you how much of a mortgage you can get, which allows you to put in a bid on a home with confidence, it also shows the seller you are serious and that they can accept your bid with the confidence that you can get a mortgage for that amount. If you don’t get pre-approved, you could lose out on a home because of your inability to get a loan.
Failing to account for closing time
Putting in a bid on a home is the easy part of the home-buying process. Once that bid is accepted, however, there is still a lot that has to happen, including inspections and title searches, that can take a long time. Most home purchases take at least two months to close, and many take longer, so it’s something to take into consideration. If you expect to be able to move into your home in a month, you are likely to be disappointed.
Failing to account for other costs
Buying a home involves more than just a down payment and your monthly payment. Failing to account for closing costs and escrow for taxes and insurance is a huge mistake that can throw a wrench into your plans to buy a home.