As Flower Mound real estate professionals, we know the decision to buy your first home is nerve-wracking, and you may not be sure about what all you need to do. There are many mistakes commonly made by newbies to home buying that can cost money, or result in getting turned down for that dream home. Here are a few mistakes we hope to help you avoid.
It’s essential to have an agent by your side through the process, to help guide and inform you. This is particularly true in highly competitive markets like North Texas, where there are tons of interested buyers and not all that many homes available.
First, even if you’re a great internet detective with amazing research skills, don’t try to find the perfect home on your own. Your agent can inform you all about the homes that are on the market and which seem to be a good fit with what you’re looking for, and even find properties that haven’t yet been listed in some cases.
Work with an agent who represents you, and not the seller’s listing agent. Of course the listing agent is going to help the seller get top dollar. When the seller hires an agent, it’s to his or her benefit – not the benefit of the buyer. Going directly to the listing agent isn’t in your best interest, although most new buyers do exactly that because they simply don’t know any better.
Be sure you get a pre-approval letter from your lender. You’ve probably done all the calculations and feel secure in the knowledge you can afford a home, but getting pre-approved for a loan takes just a few days and will put you in a more serious light as a potential buyer in the eyes of the seller.
Be sure to check your credit score, and we don’t mean taking a glance at it to see what your number is. The unfortunate fact is that there are lots of errors on credit reports, and yours could be one of them. The interest rate you pay depends on your credit score, so if there’s an error, be sure to ask the credit bureau to fix it.
Factor in homeowner’s insurance costs when going over your budget. There are certain factors that can impact how much you pay for homeowner’s insurance, including whether the home is located in an area prone to flooding or high winds, or if you have a pool in the backyard. Understandably, homes located near a fault line could be affected if an earthquake strikes; a home on the beach is at risk of tropical storms, hurricanes, etc. All of these things and more can increase homeowner’s insurance costs.
There are lots of mistakes first-time home buyers make, in addition to those mentioned above. If you’re looking to purchase your first home in North Texas, be sure to contact our Flower Mound realtors for guidance, to ensure you don’t make mistakes, and for help locating your ideal home.