Are you new to real estate? As a first time home buyer, it's understandable if you find all the jargon involved in buying your first home to be foreign and intimidating.
The median first time home buyer is 31 years old, has a household income of approximately $60,000 per year, and has saved for over five years before beginning the home purchase process.
These statistics give a snapshot of the typical first-time buyer, and why they are likely to fall victim to the following mistakes. This list includes the three most common errors the average first-time home buyer will make during their real estate transaction.
Maintaining your financial health isn't only about budgeting and spending less than you earn. Credit reporting agencies are not perfect, and sometimes there are errors in your financial history.
Before applying for a home loan, it's important to know what's in your credit report. Don't be blindsided by negative financial information-regardless of the veracity of the financial data, it is still important to review your credit report before applying for a loan. Starting early will give you time to correct errors and pay off any outstanding debts.
Not ensuring that your financial history is both accurate and mostly positive can lead to higher interest rates, or even denials.
Buying your first home qualifies the borrower for additional money not available to other purchasers, so entering into a transaction with poor financial health is a waste of these valuable tax credits and grants.
In an ideal world, home buying would be easy and problem free. However, this is not always the case. When things go wrong, many first time buyers find out they have no plan in place for additional expenses.
Even when everything goes according to plan, many first-time buyers are surprised by the number of additional fees associated with homeownership. Expenses like property taxes, homeowner's insurance, and appraisal fees may disrupt your financial plan or chip away at your savings.
The best course of action is to save 10% more than you plan to need. These reserve funds can help take care of surprise expenses.
Top real estate agents serve as housing experts to their clients. No one will know more about Frisco and the homes for sale in your city and surrounding areas than a local realtor. When home buyers do not understand real estate trends that affect the price of property in the area, they risk paying more for their homes.
A lack of understanding can also cause delays that result in increased fees or penalties. Top real estate agents also provide first-time buyers with vital information that is needed to make sound decisions during each step of the buying experience.
Owning a home is one of the most significant financial steps that most people will make in their lifetime which is why home ownership is considered an accomplishment by most Americans.
First time home buying in Frisco will be different for each person, but hiring an agent from HFMA can put you on the right track toward avoiding these common problems and ensuring a positive home buying experience. Contact us today and we'll put you in touch with an agent in your area.
Tanya Stewart
Ms. Stewart holds a B.S. in Engineering Psychology from the University of Illinois, Champaign-Urbana and Juris Doctorate law degree from the University of Georgia, Athens. She has over 15 years of experience running different businesses. She taught Marketing and Strategy for the Georgia branch of GKIC, a global Entrepreneurship & Marketing company.
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