This week we asked our Oakridge agents what are some common first-time homebuyer mistakes they see when working with first-time homebuyers. Here is what they had to say and some helpful tips if you are a first-time homebuyer!
1. Not Being Pre-Approved Before Looking
Is pre-approval really that important before we start looking at homes? YES! Even if you are just "looking for fun" you never know how quickly a home you want could pop up! Without a pre-approval letter from the bank, you will not be able to put an offer in. This is step 1 of looking for a home and very important. Your pre-approval will help determine your budget and what your can afford.
2. Unclear Expectations and Wants
Do you know what you want in a home? Having clear wants and needs in a home (bedrooms, bathrooms, location, etc.) will help narrow down your search when looking.
3. Not Running the Numbers
After getting approved it is important to "run the numbers" of what you can afford for a monthly mortgage payment to best fit your lifestyle. Talking to a financial advisor you trust can help assist.
4. Purchasing a "Big Ticket" Item After Being Pre-Approved
Purchasing any "big ticket" item(s) that requires a loan to purchase could cost you your pre-approval that you just received.
5. Opening a New Credit Card
Similar to purchasing a "big ticket" item(s), opening a new credit card. could cost you your pre-approval.
Bonus - 6. Switching Jobs
Your pre-approval is based on your income at the time you apply, switching jobs while looking for a home could change or cost you the pre-approval.
Bonus - 7. Not Selecting the Right Agent
Who you work with makes a BIG difference. Do research, read reviews, and ask questions before meeting with an agent to make sure you are the right fit for each other.