Published on 06-20-2018
This spring, we will be sharing a blog series highlighting the top four concerns first-time home buyers tend to have and how you can feel comfortable about them. We’re here to help you through every step of the home buying process.
It’s no secret that buying a home can be overwhelming at times. Many homebuyers are worried that mistakes might be made throughout the process.
“What if I end up not liking the neighborhood? What if there are unexpected and expensive repair issues? Have I budgeted enough? Is this even the right time to buy?”
Some of these things might be running through your head, but know that questions like these are very common. In part three of our Insights for First-Time Home Buyers series, we share a few things to consider in order to avoid making mistakes and ensure that you will be living “happily ever after” in your new home.
Don’t Have Buyer’s Remorse
Buying your first home signifies a new chapter in your life. Sometimes, first-time home buyers rush into things with excitement and make hasty decisions, which could potentially turn into regretful mistakes. So, how can you avoid that happening to you?
First, make sure you know what your budget is, what neighborhood you want to be in and what your must-haves are for your home before you even start looking.
Broker Eileen Meehan tells home-buyers to do their homework, know the value of the area and the home you are buying, and be sure it meets your family’s needs. Need help determining your budget? Start here with Coastal’s home affordability calculator.
Another mistake first-time home buyers make is falling in love with the first house they see. However, this can potentially lead to buyer’s remorse and paying too much for the home. Talk to your Daymark real estate agent at Coastal before you start house tours to figure out exactly what you want upfront.
You can – and should – also do your own research before house hunting. Be sure to look at the prices of homes in neighborhoods near your desired area to see what your home’s potential resale value could be.
Budget, Budget, Budget
Another mistake to avoid is forgetting to budget for other expenses during the home buying process. Yes, you do need to budget for your anticipated inspection cost, closing costs, monthly mortgage payments, etc. But, don’t forget about the other expenses that come along with a new home.
Other costs can include things like utility set up fees, potentially higher utility bills, paying for a landscaper or yard equipment, or even buying new appliances. When you are ready to make an offer on a home, think back to your tour – or request a second tour – and try to make a list of the essential things you’ll need to budget extra for.
And, you can’t forget about those pesky maintenance costs. Experts recommend saving up for at least three to six months before becoming a first-time homebuyer to create a buffer in your account. That way, when something needs to be fixed or purchased, you aren’t stuck in a financial crisis or living paycheck-to-paycheck just to keep up.
The Right Time to Buy
The right time to buy a home can differ depending on what region you’re in, but homes are typically put on the market and sold in the warm summer months. In North Carolina, the peak season is typically around June through August.
If you are looking for a home during peak season, there will be a lot of different houses to check out, but you might also run into houses selling very quickly – or even a bidding war. Buying during this timeframe can sometimes mean higher prices, too. Your Daymark real estate agent can guide you on the best time to buy in your desired area.
If you take your time, determine your budget upfront and really think through what you’re looking for in a home, you can avoid making some of the most common first-time home buyer mistakes.
Not to mention – your Daymark realtor and Coastal mortgage lender will be there with you through every step of the process, making your first-time home buying experience smooth and easy.
*All loans are subject to approval.
For a $250,000 loan for a term of 30 years with a 4.50% APR, the monthly payment is $1,267.00. Taxes and insurance are not included in this payment example and the actual payment obligation could be greater. All loans are subject to approval.