Getting ready to buy your first home is an exciting time. But buying a home is also a big investment that will affect your financial future, so it’s important to make sure that you understand the process and make good decisions about the home that you buy. Working with a South West Florida real estate agent like Rebecca Silva is the smart way to make sure that the process of buying your first home goes smoothly and that you end up buying a house that fits your lifestyle and future plans.
Many first-time homebuyers make costly mistakes that end up putting them into financial hardship or leaving them with a house that doesn’t fit their needs. Here’s a quick overview of some of the most common mistakes that first-time homebuyers make and how you can avoid them:
Only Thinking About Mortgage Payments
When first-time homebuyers are searching for real estate and trying to figure out how much they can afford to spend on a monthly mortgage payment they often only look at the payment itself and don’t take into consideration all the other expenses that come with homeownership.
Besides your mortgage payment, you will also need to factor in property taxes, utilities, and depending on where the home is located, you may/may not have HOA fees that you will need to pay as well. To get an accurate idea of what your real monthly expenses will be, you will need to factor in all of these costs as well as the overall mortgage payment. A mortgage broker can help you determine what all of your monthly expenses will be so that you know how much house you can afford to buy.
Not Understanding What Type of Mortgage Is Best for Them
One of the most significant problems during the last housing crisis was that millions of homebuyers didn’t take the time to learn about mortgages and which type of mortgage was best for them. There are two types of mortgages: Fixed Rate and Adjustable Rate. A Fixed Rate mortgage is exactly what it sounds like. The payments are fixed for the length of the mortgage, which is usually 30 years for most homebuyers. Because the payments are fixed, they are often are a little bit higher than an Adjustable Rate mortgage.
An Adjustable Rate mortgage has payments that are fixed for a set period of time, such as three years or five years, and after that the rate changes. First-time homebuyers that only look at the total of their monthly payments sometimes choose an Adjustable Rate mortgage because initially, the payments are lower. But after that fixed period is over those payments can balloon quickly leaving homeowners scrambling to come up with a mortgage payment that could double or even triple depending on the current interest rate and the details of the mortgage.
There are some cases where an Adjustable Rate mortgage is the better deal for a homebuyer, but in most cases, a Fixed Rate mortgage is a better option because it allows homeowners to efficiently budget, knowing that their monthly mortgage payment will remain the same.
Not Getting Professional Help from A Real Estate Agent
There’s a lot more to buying a home than just finding a listing you like on a real estate app. The process of buying a home can be complicated and confusing. Too many first-time homebuyers make the mistake of thinking that they don’t need a real estate agent to help them through the process. A real estate agent will help you through the entire process of buying a home and make sure that you understand all the financial ramifications of purchasing property. A real estate agent also can negotiate a better deal for you and make sure that your interests are protected when buying a home. And a real estate agent has access to a lot of listings that you won’t find on Zillow or Redfin.
Buying More House Than They Need
First-time homebuyers are often dazzled by large homes with fancy finishing that may be a lot more house than they need, and a lot more expensive than they can comfortably afford. It’s easy to get swept away by upgraded features and open floor plans and not think about what you can really afford or what you really need in a home. A real estate agent can help you stay focused on finding a home that will suit your needs now and in the future so that you don’t end up buying a home that looks pretty but won’t work well for you and your family.
It’s important for homebuyers to remember that they don’t have to buy an expensive home just because they get pre-approved for a large mortgage. If you set a budget and are approved for a higher amount that doesn’t mean you should automatically increase your budget. An experienced real estate agent will talk with you about your needs and help you figure out what amenities you really need in a home so that you don’t end up paying a lot of money for a house that isn’t going to work well for you and your family.
Making Emotional Decisions
Of course, you should love your first home. But it’s easy for first-time homebuyers to fall in love with a property and then make decisions out of emotion that might end up being bad decisions. Buying a home is a process of negotiation from start to finish, and it’s never a good idea to get too attached to one property right from the start. Buyers who are too emotionally attached to a home might end up paying more than the home is worth or taking on a house that needs more work than they can afford to put into it or buying a house that won’t work for them in the future.
That’s why working a real estate agent is so important. A real estate agent will be your advocate, your negotiator, and your teacher during the home buying process to make sure that you end up in a home that you love that will enable you to live well now and in the future.
If you need help deciding which area in Fort Myers to choose for your retirement, contact Rebbeca Silva Realtor and let our team help you find the home of your dreams.
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Rebecca Silva
Hamilton-Franklin Realty
1136 NE Pine Island Rd #49
Cape Coral, FL 33909
239-464-2528
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