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Ten Common Mistakes Of First Time Home Buyers

Praful Thakkar

I am sure, in my last article, many of you have tested "Rent Vs. Buy Calculator". With interest rates so low, hopefully, most of you may have realized that buying is a better proposition than renting in today’s economy.

Let me continue with my passion – to help First Time Home Buyers. They want to buy but stumble upon some emotional and financial blocks. Are you one of them? Do you know what these blocks are? What are these common mistakes? Let’s start our countdown...

10. Not planning ahead – more so if they are renting currently and the rental agreement or lease has early termination penalty clause.

9. Not improving the credit scores, assuming that they have to wait for 7 years to improve it!

8. Once they liked the property, taking too long to decide to make an offer.

7. Not reading the inspection report carefully. Some buyers do not get even an inspection done through licensed inspectors.

6. Not shopping around for the best mortgage deals or checking what type of mortgage is right for you.

5. Based on emotions, getting into multiple-offer bidding frenzies.

4. Failing to get pre-approved. A written pre-approval reveals that they are serious about buying.

3. Not completing the ‘Needs Analysis”. Shopping for more than they can afford. Squandering time in visiting most expensive houses in the most expensive neighborhoods.

2. Uneducated buyers tend to offer too little and ask for too many concessions, including asking the seller to pick up buyer's costs, to make extensive repairs, or to provide a home warranty. That could insult the seller, even in a buyer's market.

1. The most expensive mistake - not taking time to find a good realtor who could educate and help them find the first home. Mostly without incurring any cost but sometimes at very nominal cost and well, sometimes offering an additional benefit.

As you learn to avoid mistakes, you'll find it easier to put your emotions on hold long enough to reach your goal. That prevents buyer's remorse, an all-too-common malady suffered by ill-prepared buyers.

Good luck.

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