10 Tips for First-Time Homebuyers
2. Do your homework before you start looking. Decide specifically what features you
want in a home and which are most important to you.
3. Get your finances in order. Review your credit report and be sure you have enough
money to cover your down payment and your closing costs.
4. Don’t wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.
5. Don’t ask too many people for opinions. It will drive you crazy. Select one or two
people to turn to if you feel you need a second opinion.
6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?
7. Think long-term. Are you looking for a starter house with the idea of moving up in a
few years or do you hope to stay in this home longer? This decision may dictate what
type of home you’ll buy as well as the type of mortgage terms that suit you best.
8. Don’t let yourself be “house poor”. If you max yourself out to buy the biggest home
you can afford, you’ll have no money left for maintenance or decoration or to save
money for other financial goals.
9. Don’t be naïve. Insist on a home inspection and, if possible, get a warranty from the
seller to cover defects within one year.
10. Get help. Consider hiring a REALTOR as a buyer’s representative. Unlike a listing
agent, whose first duty is to the seller, a buyer’s representative is working only for you.
And often, buyer’s reps are paid out of the seller’s commission payment.
5 Common First-Time Home buyer Mistakes
I. They don’t ask. Enough questions of their lender and miss out on the best deal.
2. They don’t act quickly enough to make a decision and someone else buys the house.
3. They don’t find the right real estate professional who is willing to help you through the homebuying process.
4. They don’t do enough to make their offer look good to a seller.
5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.