In today’s uncertain economy, making a tiny mistake while buying real estate property can land you in big trouble. Even if you are purchasing your first home to be the primary residence for the next couple of decades, you cannot afford to be negligent when it comes to researching the real estate market and the demography of the region you wish to buy your dream home in.
A report published by a popular news outlet CNBC confirmes that, “63 percent of millennials who bought homes have regrets (data collected in 2019).” The reason being, they fail to correctly estimate the hidden costs associated with buying and owning a home. They either make a buying decision hastily or the realtor does not inform them about the hidden costs ahead. Let’s talk about what you need to do and don’t do before buying your first home.
Here Are the 5 Do’s and Don’ts for a First-Time Home Buyer
1) Do Hire a Realtor With Good Reputation
Hiring the right real estate agent is one of the most important steps when buying a home for the first time. There is no point in trying to save some money by doing everything by yourself. It’s true that some homeowners do prefer to conduct the home buying process by themselves but they are most certainly experienced, real estate investors. By hiring a reputable realtor, you will save time, money and unnecessary headaches.
2) Do Know Your Credit Score
There are free of cost ways to find out your credit score. Just register to CrediKarma, and they will send a request to credit card agencies like TransUnion and Equifax on your behalf. However, make sure you are sending in a request just before you begin the home buying process. These agencies will be performing a “hard credit check”. Repeatedly sending a request might hurt your credit score.
3) Don’t Switch Jobs Unnecessarily
When buying a home for the first time, stick to your current job until you step into the new home. When you switch jobs, there is always a possibility that something might go wrong. You might find the organization unsuitable or vice versa. In such a situation, your mortgage provider might feel reluctant to provide you the funds needed to close the deal.
4) Do Get To Know Your Future Neighbours
If you are not one of those people who can walk into any neighborhood and make friends effortlessly, you can find out more about your new city by using the app AroundMe on your phone. AroundMe tells you how far is the nearest ATM, school, hospital, Italian restaurant, etc.
5) Don’t Be Impulsive
Not everyone has the level of self-awareness needed to make sound financial decisions. If you are young, you most probably will jump onto the first house your realtor shows you. Realize that a realtor’s job is to close the deal as early as possible. They may or may not have your best interest in their mind. Hence, it is your responsibility to make sure you are present and focused while hunting for a home.
Summary
These are the five do’s and don’ts you should be aware of before buying your first dream home. Buying a home for the first time can be overwhelming. Like everyone else, you too are going to make mistakes. Just make sure that you don’t make the common and easily avoidable blunders.
