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First-Time Home Buyer Tips and Mistakes to Avoid

Are you a first-time homebuyer? It doesn’t matter if you are an
individual, a family of 4, or a newly engaged couple, buying a home is a big deal for most people. Today’s real estate market is competitive, and without the right agent, it can make even the smallest task seem impossible to accomplish.

Just a few important steps to home buying aren’t limited, but can include:

  • Mortgage approval
  • Choosing the right real estate agent, broker, lender, etc
  • Deciding on a budget and location
  • Compromising if building or renovation isn’t an option

Home buying can be such a rewarding experience, but it takes a lot of patience. At the Erhardt Group, we pride ourselves on trying to make this process as smooth as possible for our homebuyers.

Here are some tips that we would like to share in hopes of helping you avoid making any mistakes during your journey as a homebuyer.

1. ) Mortgage – Just because you are ready for a mortgage payment, it doesn’t mean that you can afford to purchase a home. On the other hand, if you know for a fact that you can buy an $850k ranch on the outskirts of Norman, there might be other things that you aren’t factoring into the purchase of said ranch.

This is where having a real estate agent comes into place. As a real estate agent, it is your agent’s job to help make you aware that there may be other obstacles that stand in the way of your dream home.

2.) Loans – Once you’ve made the decision that you are going to dive into the deep end of the pool by planting roots somewhere, the real process has yet to begin. It truly begins with your mortgage pre-qualification. While this process sounds about as terrifying to some as going to the dentist, it doesn’t have to be such a horrible experience. Remember, this is the time to divulge any kind of financial difficulties you may have encountered in life vs hiding them. It’s your mortgage officer and agent’s priority to help lessen your load and keep your life as debt-free as possible.

3.) Skipping the Professional Help – Skipping out on the professional help can be one of the worst mistakes that a first-time homebuyer could make. After all, this isn’t the same as going to your local Target and deciding which remote control car you should buy. The ramifications of buying a home can not only damage your credit, but it can hinder your ability to purchase a car in the future, pay bills, and the list only expands from here.

As terrifying as that reality is, this is what our job as a real estate agency is all about. We are professionals. If you aren’t willing to pay $850k dollars, then don’t. We encourage you to only spend what you can afford.

4.) Using All of Your Hard Earned Money – Whatever dream house you have in mind, do not, and we cannot stress this enough, do NOT take ALL of your money and put it towards the down payment on your next dream home. This is above all, the WORST idea that any new homebuyer could make. If you need a mortgage, but don’t have much money for your down-payment, then consider something such as searching for a low down-payment mortgage.

5.) Adding in A New Car Loan to the Mix – Woohoo!! In 2 weeks you are closing on your new dream home! While this is exciting, this is not the perfect time for you to run over to the nearest car dealership and finance a new 2019 Dodge Caravan for that dream vacation to California.

We advise against this. Please, take your time. If you absolutely have no other options, and you are forced to take on another loan at this time, please talk to your agent as soon as possible.  This could not only hinder your finances in the long run, but it could cause problems with the purchase of your dream home.

Life is too short for you to stack on loan, after loan, after loan, all at once. If something such as your car gets totaled during this process and you have to take out another loan, talk to your agent, and your loan officer immediately. If you’re in good hands, your agent and loan officer will understand that your situation just became complicated. Any good agent or loan officer will be more than understanding about this and will be able to help you navigate your way through the treacherous waters.

So there it is! These are just a few tips that we have for homebuyers, and the mistakes to avoid while purchasing your dream home.

If you have any questions please feel free to toss them to us in the comments below and we’ll be more than happy to answer them. We’re excited to pass on our knowledge to help you accomplish your goal of buying a new home.

Thanks for taking the time to read our blog and keeping up with us at the Erhardt Group. Have a wonderful day!

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