Buying a home is scary and exciting at the same time, especially for first-time homebuyers in Texas. The housing market is on fire in the Lone Star state making the competition for homes stiff. To prevent ending up with financial remorse, here are seven mistakes first-time homebuyers in Texas should avoid.
Working with the Seller’s Agent
The seller’s agent is looking out for the best deal for the seller. First-time buyers should choose an Accredited Buyer’s Representative. These agents understand the special needs first-time homebuyers need and have expert knowledge and experience that can ensure a good first-time home buying experience. Working with the seller’s agent can be a recipe for disaster and can lead to an unfair deal for you as the buyer.
Choosing the Most Expensive Home
Do not purchase the most expensive home you qualify for. The lender you use doesn’t know how much you should be spending on a home purchase, just how much you qualify for the bank to lend you. Many first-time homebuyers max out their budget, leaving them with little or no savings. In Texas, home prices aren’t as high as in other states, meaning you can get more bang for your buck. If you are looking for a larger home, try looking at older homes that have been updated.
Not Having the Right Information
Another big issue first-time buyers have is not taking the time to look around and choosing a home too quickly just because it’s available. You do have to act quickly to secure the home you want in some areas, but that doesn’t mean you should purchase the first home you see. Make sure you understand all of the expenses that come with owning a home and be well versed about the market and the competition in the area to make sure you win if you end up in a bidding war.
Purchasing a Home Without Mapping Out Finances
Not having your finances in line can severely affect the purchasing of a home. You first need to determine what you can afford and then seek pre-approval for a mortgage. Work with a professional lender that provides programs for first-time homebuyers. Don’t make costly mistakes by purchasing a home when your finances are not in order.
Not Visiting the Home Often Enough
Keep in mind that you cannot change the location of the home, so before you make an offer and seal the deal, make sure the area is where you want to be. Visit the home at night and during the day to get an idea of what the neighborhood is like. You don’t want to end up purchasing a property that is right next to a loud train track and regret your decision every half hour the train zooms by.
Many first-time homebuyers have a fear of missing out and constantly want to continue looking at properties to ensure that they don’t find the perfect home after they’ve already purchased one. First-time homebuyers always believe that there is something better, even if their gut is telling them it’s the right home for them. Shopping around and looking at different options is a smart move to ensure you get what you want, but indecisiveness can cost you your dream home if you wait too long to make a move. If you make a bid on a home and it is accepted, backing out can be very costly.
Purchasing a Fixer Upper
Maybe you consider yourself pretty handy, but as a first-time homebuyer, purchasing a true fixer upper can be more responsibility than you are ready for. Before making an offer, you need to budget for all of the repairs you intent to make to make sure you have the budget to afford the renovation. The worst thing you can do is purchase a home and find out that there are issues such as water damage, plumbing issues or even cracks in the walls from foundation shifts. If you have the money to put into fixing the home, go for it, but be prepared for the amount of work it takes to transform a fixer upper.
Ready to make McAllen your new home? Contact one of our experienced real estate agents at Trendsetters Real Estate to get started on finding you the right neighborhood with the perfect house close to all the amenities you want and need.