First-time home buyers are facing some stiff competition this summer, and while they may feel compelled to make a hasty real estate decision, doing so could lead to financial remorse or home buyer regret.
Choosing the most expensive home. Just because you can qualify for a loan to buy that high, doesn’t mean you necessarily should. Some buyers max out how much they spend but then have nothing left over for savings. They get over their head quickly then when they move into home ownership.
Not shopping around enough. This applies to seeing enough homes and shopping for the right mortgage. “We are in a crazy market, and many buyers feel rushed,” says Mike Dokos, a real estate professional. Buyers likely need to be able to act quickly in some areas but they don’t need to feel pressured to buy the first house they see. They should take time to learn the markets and its values so they can feel more confident about their purchase. They also should take into account all the costs of home ownership, including mortgage, insurance, taxes, maintenance, utilities, and unexpected incidentals, Ferguson says.
Being indecisive. On the same note, home buyers can’t be paralyzed to act in the market either if they want a home. Many first-time home buyers “suffer from the fear of missing out,” says Mike Dokos, a real estate professional with AZ Xceptional Realty. “They may find a home that they love, and though their gut tells them it’s the right house for them, they believe that there’s something better.
Working with the seller’s agent. Some buyers get the help of the seller’s agents, but they are there to represent the seller, not the buyer. Often, they don’t realize that the buyer’s agent will be compensated through a commission split from the seller’s side so there’s “no out of pocket expense” to first-time home buyers seeking an agent for themselves.
There is no better time to buy a home than right now. But the first and most important thing you need to do is to get pre-approved for a loan and Mat Grella at Equity Prime Mortgage 480.221.1413 can get this done for you. Ask him to explain the Down Payment Assistance Program to you where you can get up to 4% of the purchase price towards your down payment and closing costs for free. If you're a Veteran or currently enlisted you can get up to 5% of the purchase price towards your down payment and closing costs for free.
I would be happy to discuss your situation with you to see where you stand and refer you to Mat Grella at Equity Prime Mortgage to get pre-approved.
Report by Ricky KhamisRealtor Report2016 Best Year for Housing in a De
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