Buying a home for the first time is both exciting and scary. It’s likely the largest purchase you’ve yet made. You also have space needs and affordability targets to meet, not to mention lifestyle and location preferences to satisfy. Knowing the common mistakes first-time homebuyers make will prepare you to better navigate the complexities of real estate purchases.

What Not to Do When Buying a Home

1. Skip Mortgage Shopping

Know how much home you can afford before you start searching. Meet with multiple loan providers to gauge rates and learn how much money each will lend you. Use a mortgage affordability calculator to assess your spending limits for monthly mortgage expenses, insurance, and down payment.  Once you’ve identified a lender, get preapproved for a loan. A preapproval is a document that you submit with your offer to certify that the lender will endorse your application for a mortgage loan.

2. Empty Savings Accounts

A larger down payment will reduce monthly mortgage expense, but emptying your savings account for that payment isn’t wise. You’ll have closing costs and moving expenses to cover, and other costs associated with maintaining the home after the move-in date. Estimate your closing costs before making an offer so you know what you can afford to pay down. Generally, 1% of the purchase price of your home should be set aside each year for maintenance, but each property is unique. Only a complete home inspection can tell you whether 1 percent is sufficient.

3. Represent Yourself in Negotiations

Although you can certainly browse real estate listings on your own, it’s in your best interest to work with a real estate agent who will represent you. As you narrow down your search, a real estate agent will help you find homes that fit your budget and needs, access databases and networks to find additional listings, and negotiate your purchase price with the seller. The seller’s agent usually splits their commission with your agent, so the cost of representation will likely be negligible.

When you’re ready to begin the process of buying a home, an experienced agent will help you make smart choices. The real estate agents at Hensley Realty are the local experts in Russell, KY. They have extensive knowledge of the market and the homebuying process. Visit them online to browse featured listings, or call (606) 836-9770 to schedule a consultation.