First-Time Homebuyers Should Avoid These 3 Pitfalls

2018-09-21T03:24:37+00:00 March 1st, 2018|Categories: Home Buyers|Tags: , , , , , , , , , |

The Real estate industry has grown in the past few years. 2018 welcomes a new generation of homebuyers who utilize every available tool they can lay hands on, in an effort to make sure they get their dream home at the best offer. For the next five years, it’s estimated that more than 17 million new homeowners will be present. These estimates were given by TransUnion, a reliable credit bureau. Of course, this will be a megaboom to the industry and the whole economy in general. There is also an increased equity accumulation that will be an advantage of first time home buyers (since they won’t be paying rent anymore).

The concern with many stakeholders in the real estate market is that the majority of the new homeowners might not be fully equipped to enter the market as new buyers. Some have no understanding of the complex mortgage market that is highly regulated. According to a recent survey done by Fannie Mae, more than 40% of prospective buyers didn’t understand what was meant by minimum down payment and were unaware of the requirements of the down payment. This means that the new generation of prospective homeowners will need to be fully educated with regards to the basic things about the mortgage industry.

1. Just because you have been tirelessly searching and clicking through the many listings that are available online, it doesn’t mean that you have finally landed yourself a good deal and soon will have your dream home. This is just the basic introduction to the home buying process. Statistics from Zillow show that approximately 46% of homebuyers fail to get their first home that they wrote an offer to. The current market has one common factor: the presence of multiple bidding or a “bidding war”. Apart from that, the deal can go down the drain at the last hour.

2. Having a team that is made of pre-qualified experts is very important. Furthermore, you will be paying them for their services. Make sure you consult with everyone, from your attorney, real estate agent, lender, and even friends and family where need be. Buying a home is a lifetime investment and you have to make the best decision at the end of the day.

3. Make sure you are not lacking a budget. It’s very foolish to go shopping for a home when you don’t have a budget that you are supposed to stick to. Have a rough estimate before you start window shopping. Without a budget, you will just be faced with continuous disappointment. Each time, the house you choose will have a higher price tag than the one you expected. Having a budget will give you the confidence to negotiate a deal with a seller.

Do you have a question about home buying? Click here to contact the Kolesar Team today!

Apply For a Loan

Apply For a Loan