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By Roger Dolanch, Broker/Owner

Buying your first home is practically a right of passage in America. It has deep emotional meaning. It is a source of personal pride and gives you a sense of accomplishment. Be a smart “first-time” home buyer by avoiding the most common mistakes that are easy to make and use your local CENTURY 21 Frontier Sales Professional to help you avoid these common pitfalls.

Taking advice from friends and family: Although their hearts might be in the right place, the facts are that every real estate transaction is unique. The real estate market is constantly undergoing change. What worked or didn’t work last month or last year may be completely different today. Market Values rise and fall. Your real estate professional is the one to guide you through today’s myriad of choices, complex procedures and to help you make good decisions.

Looking at houses before you know what you can reasonably afford: If you have not taken the time to speak to a lender and become pre-approved, you may begin to consider properties that are beyond your ability to purchase. It is more difficult to be satisfied when you have your sights set much higher. Speak to a mortgage lender and allow them to help you determine your true purchasing power before beginning your home search.

Spending the maximum you can borrow: Avoid becoming “house poor.” This is your first house, not your best house. Most people start small and grow into bigger and better homes over years as their earnings grow and the first house appreciates in value. More importantly, once you move in you want to have some discretionary income left after payments, maintenance and unexpected repairs to go out to dinner, see a movie, take a vacation or establish a savings plan.

Making an insultingly low offer: You may think that because a home was foreclosed on or has been on the market a while that you can get a good deal by offering well below asking price. The fact is that this strategy seldom works. Most often your offer will be flatout rejected because the seller is so insulted they will not even negotiate with you. You end up with nothing but disappointment and lose the house you want.

Hesitating to make an offer when you find the right home: We understand that buying your first home is a major life decision. That said, you should keep in mind that you are not the only buyer in the marketplace. The odds are that if you think this is the right home, some else may think so, too. Losing out on what you want because you took too long to make up your mind can cost you the right house at the right time. When you find that home that works for you and your budget, make your offer!

Trying to achieve perfection: Keep in mind that there is no such thing as a “perfect” house. There is, however, an “ideal” home for you. Homes in every price range will have flaws, including new construction. It is normal. The results of a general home inspection will always prove this to be true. Expect that significant safety risks and code violations may be something the seller will negotiate about, but do not expect the seller to repair every little minor or inexpensive issue.

Avoiding the paperwork: Remember that when you are making your loan application, the lender will require proof of everything! You might be pre-approved, but that is not the final step in the loan application process. If the lender asks for bank statements, W-2s, and any other type of documentation, please supply it to them as soon as possible. Your closing may be delayed or final approval of the loan denied because the lender did not receive required documentation.

Buying your first home is a wonderful life experience! Follow this advice and with the help of your local CENTURY 21 Frontier Realty Sales Professional, you can find the ideal home at the ideal price and embrace your future.

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