Top First Time Buyer Pitfalls to Avoid

Buying a new home for the first time can be both exciting and stressful. There is so much to consider and important things to be aware of. Then you have your visit to your Brooklyn mortgage lender to think of, and going through the process of acquiring the right mortgage for your situation.

With so many steps to take in the process of buying a home, many first time buyers can make mistakes that will cost them thousands, cost hours of frustration, or worse, not getting the home they had their heart set on.

Thankfully, a good Brooklyn mortgage lender can lead you through each and every step so that you don’t fall victim to these pitfalls along the way.  They’ve shared the top pitfalls that first-time buyers need to be aware of in the house buying process.

Not Getting A Mortgage Pre-Approved

Getting pre-approved for a mortgage is an important step but one that many home buyers don’t do. If you want to be successful in buying your first home, a pre-approval will put you in the best position possible. A pre-approval means that you have more of a chance of being granted the mortgage, which looks better to the seller.

Pre-approval is not the same as pre-qualification, and this is important to remember. Pre-qualification means you have gone through the general steps with your Brooklyn mortgage lender. It does not mean that you are pre-approved for the actual mortgage yet.

Using the Sellers Real Estate Agent

This is another mistake many first time buyers make. Using the sellers real estate agent, or listing agent is not something you should do. It means you are more than likely getting into a dual agency scenario, which means that the agent represents both the buyer and seller.

The problem with this is that the agent can’t give you any advice regarding how much they feel the home is worth. The also won’t be able to help you negotiate any requests for repairs after a home inspection is done. You are basically giving up your right to representation. Dual agencies are not legal in most states, so be sure to check if it is in yours.

Not Factoring In Additional Expenses

It’s not only important to know how much you need to buy a home but to run a home as well. This is something many first time buyers forget to do. For example, you need to take into account monthly utilities, general maintenance, and homeowners insurance. If you purchase a home at the top of your budget range and forget to add in these common expenses, you can open yourself up to financial stress.

Forgoing The Home Inspection

This is one of the most important steps at the start of any home buying process. You may think you are saving some money, but it could end up costing you a lot more later on down the line. An inspection will let you know if the home will be a money pit with repairs and issues. An inspector can find structural issues that you can’t see, or check for mold issues in the home

Making Financial Changes Before Closing

While you may think that, once you have your pre-approval you are guaranteed a mortgage, this can be further from the truth. Making any financial changes, such as applying for a new credit card or personal loan while undergoing the mortgage process can mean disaster. Any financial changes made during this process can jeopardize you getting approved for a mortgage.

If you are looking for a new home, the best advice is to speak with a Brooklyn mortgage lender who has the experience needed to get you through the process and avoid these pitfalls.

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