11 Costly Mistakes First Time Home Buyers Make

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Buying your first house can prove to be quite a challenge and there are many mistakes first time home buyers make. Here are the most common 11 errors to avoid when making a real estate acquisition:

1. Not planning a budget -The most common mistake first time home buyers make is to assume their ability to pay. Calculate your income to expenditure. Get to know  how much you can pay every month.
2. Not having their mortgage pre-approved -There are several advantages of having your mortgage pre-approved: it shows the seller that you are a serious buyer.  It is a way of assessing your ability to pay and helps you establish a maximum threshold for your investment.
3. Not having checked the surrounding neighborhood - Living in a quiet area, next to good schools, shops and services will not only make your life easier, but it will also facilitate your house’s resale.
4. Not hiring a Home Inspector - First time home buyers often ignore the importance of hiring a professional home inspector. This is the best way of making sure your investment is worth your money.
5. Forgetting other expenses -Don’t look solely at the price stipulated by the contract. There are always other expenses the house might require before it can become your home: insurance, minor repairs, home owner’s association fees.
6. Not checking thoroughly - If you buy a new building, it does not mean it is flawless. Check the materials used, the finish and ask for improvements before the construction is finished.
7. Acting upon impulse - A house is a long term investment. Therefore, you should take the time to check the offer and weigh your options before making a purchase decision.
8. Not reading between the lines -Real estate contracts are not easy to read. If you do not understand all the terms, use a professional’s services.
9. Being in a rush - Take your time to look for your future home, to inspect it carefully and make an informed decision.
10. Not having a vision - First time home buyers don’t always have a vision of how much space they will need or what type of house suits them best. Think about your present and future needs before making the purchase.
11. Not negotiating with the Realtor - The real estate agents’ fees can be quite high. However, they are always negotiable.

These handy tips can help a first time home buyer purchase their own home; the home of their dreams. Another helpful tool is "The Essential Guid to Buying Your First Home." Get your free copy of this popular eBook at the button below.

(11 photo: Flickr user Cali4Beach)