The thought of becoming a first time home buyer can be both exciting and overwhelming. If you've decided to take that first big step into Raleigh home ownership, make sure you're not making some common first time homebuyer mistakes before you jump into the house searching process.
When important aspects of home ownership are overlooked, your investment could end up feeling like a bad decision. It’s important to ensure your investment will provide a good return upon resale. Trusting a Raleigh real estate agent and following a few guidelines below can help make your first time home buying experience something to feel good about.
Here are five first time home buyers mistakes:
Searching for a dream home before getting prequalified for a loan. Finding the home of your dreams during a house hunt can be exciting! Realizing you can’t secure a loan for the cost of that dream home is more than disappointing. Before choosing a price range and searching the listings, be sure to get a prequalification from your lending institution. By doing so, you can realistically look for a home you can afford. You can also breakdown a monthly payment, including taxes and other fees that might be included. It’s important to start with a budget you can stick to during your home buying search. Obtaining prequalification for a loan can help make that possible.
Delaying home buying in hopes of a better rate. Interest rates are still low. Yes, they have risen slightly and are projected to rise a bit more but the important thing to remember is that interest rates are still lower than they’ve been in the last decade even with the recent increases. If you are ready to commit to homeownership, interest rates shouldn’t be the dealbreaker. Adjustable rates can help ease your fear of locked rates. Talk to your lender and fearlessly take the next step to becoming a first time home buyer!
Thinking short term. Searching for your first home is exciting, new, and different. Getting carried away with the process of the search, it’s easy to overlook some key factors. Pay close attention to the neighborhoods, future developments in the area, and the resale value of the home you’re looking to purchase.
The Roark Premier Team | Raleigh Real Estate Agent
According to a senior mortgage loan officer and assistant vice president at Johnson Bank, “As a first-time homebuyer, the idea of selling your home in the near future probably isn't at the top of the priority list, but it should be. Buy that first house with the idea that you can resell it with some ease should your plans change in five years. Hold off on buying the super charming or quirky house until you are financially established and can afford the charm.”
Long term effects must also be taken into account during your decision to buy a home. Redevelopment phases in the neighborhood could increase your home value in the future. Purchasing an older home might not allow for as much appreciation as a newer one would. Investments can be risky; keep all aspects of the future in mind.
For more first time home buying mistakes, be sure to check back with us in the near future. We will complete our first time home buying mistakes list and hopefully help you make all the right decisions when buying your first home. In the meantime, contact The Roark Premier Team to speak with a Raleigh real estate agent about available homes in the Triangle area.