First time homebuyers: Avoid these 3 common mistakes

| Jan 21, 2021 | Real Estate Transactions, Residential Real Estate

2020 was a hot market for real estate. Mortgage rates were low, and people had a lot more flexibility in where they were located due to increased availability of remote work status. Real estate market experts predict the trend to continue through 2021, with buyers continuing to look to take advantage of low mortgage rates and increased workplace flexibility.

Buyers looking to take the big step towards homeownership and can increase the chances of a beneficial deal and set themselves up for future success by avoiding these common mistakes during real estate transactions:

  • Not reviewing your credit report. Take the time to check to see if anything is wrong with your credit report. If anything seems off, try to get it fixed before applying for a mortgage. Lenders often look at these scores and may base rates on these numbers.
  • Only getting one quote. It pays to shop for a mortgage. Do not jump on the first offer but get a couple of different offers to figure out which is the best rate. Do not be afraid to negotiate, either. You may be able to sweeten the deal simply by asking.
  • Underestimating the expenses that come with homeownership. Buying a home will cost more than the price of the home. There will be expenses for insurance, moving, taxes, upkeep and repairs. Not to mention any plans you may have for remodeling. Get an idea of these costs and put them into your budget before finalizing any transaction.

It is also important to note that you do not have to simply accept the boilerplate document given to you by a real estate agent to purchase a home. You can negotiate and change these documents. This can help to better ensure your interests are protected long after the deal is complete.