FIRST TIME BUYERS 4 BIGGEST MISTAKES

The Covid-19 pandemic put your efforts to buy your first house on hold, but now there is light at the end of the stay-at-home tunnel. You have decided to re-entry the housing market. 

The pool is always the fullest in the first-time buyer market.  Young couples or singles who are getting established looking for the best deals.  So, here are the four biggest first-time buyer mistakes you can avoid.

1. Closing cost - Closing costs are the fees and payments you make at the closing to complete the transaction.  Your real estate agent will guide you through what takes place at closing and will be able to tell you the exact amount of cash you will need to finalize the sale.  Once you have signed a contract and the seller has accepted your offer, the easiest way to calculate closing costs is to have on hand an additional 3-4% above your agreed sale price.   

2. Straighten up your credit report - You should review your current credit report to clear up any incorrect entries.  You may find it difficult to acquire a loan if there are questionable remarks on your credit report.  Take care of any "questionables" before going to obtain a loan.

3. It is the block, not the house - Before submitting an offer on a house, check out the block/neighborhood.  There is truth to the fact that location is everything.  You may find the ideal home in the worst neighborhood which could impact the future value of your home.  Set emotions aside and take a good look at your neighborhood. Is it run down or are there parks and public venues close by that make the area desirable?

4. Cash is King - If you have heard this once; you have heard it a hundred times - CASH IS KING!  The difference between you securing the home and losing it may be your finances.  Your approved loan is your cash-in-hand and will provide you with the leverage you need to close the deal.  

Avoid these four biggest mistakes and you will be able to eliminate undue stress in your search for your dream first time home.