5 First Time Home Buyer Tips
The following post will highlight some of the most common “mistakes” first time home buyers make when it buying a home. These mistakes are not specific to NJ Home Buyers. As a retired first time home buyer and an experienced buyer’s agent (4 NJ Counties Wide), I have identifed a few mistakes you should avoid in your home search.
|Buying Mistakes to Avoid||Home Buying Tip|
|Failure to Get Prequalified||Most if not all first time home buyers will finance their first home purchase with either an FHA mortgage or conventional loan. Getting prequalified by an experienced loan officer allows you to shop for a home at ease. Many first time home buyers fear having their credit “pulled” one too many times when shopping for a home for fear of having too many inquires, which could affect your credit score. Generally, your credit resets every 30 days. Depending on what you actually want to buy, you may have to have your credit scores and report pulled by more than one lender. Some homeowners will ask that your credit be reviewed by a lender of their choice. Another benefit to getting prequalified and speaking with a lender is acknowledgement and consideration for other expenses associated with the sale i.e. closing costs and consideration on how PMI, insurance and taxes will affect your monthly out of pocket expenses and ability to repay. Here is a complete list of costs associated with buying a home.|
|Refusing to Hire an Exclusive Buyer’s Agent||Many first time home buyers make the mistake of working with the first agent that follows up with them when they inquire about a home. THIS IS A MISTAKE. Choosing an agent is as important as choosing how to finance the home. Choose an “in market area agent” who will add you to automatic emails of new homes for sale within your search criteria. Choose an agent that is accessible, someone who lives close to the area you’d like to buy in and someone with several years real estate sales experience. This is not to say that a newer agent will not be able to service you properly. It’s to say that an experience agent generally has a better handle on negotiating contracts and helping you identify houses that will meet your wants and needs.|
|Assuming Short Sales and Foreclosed Homes are Better Real Estate Buys||
Some short sales and foreclosed home can be purchase below market value, but generally these properties are sold in the “as is” condition and you may have to be responsible for evicting current tenants. Some lenders will not approve financing on foreclosed properties if the utilities and services are not turned. Short sales are subject to lien holder approval which can take 3-18 months to close. Read this for additional information on buying a Short Sale
|Being Too Discriminatory in Your Home Search||Homes with one bathroom can be very desirable in terms of price, location and other amenities. Properties with oil heating systems can be smart purchases if you include the costs of converting from oil to gas in your offer.|
|Renegotiating Price After a Home Inspection.||Some repairs on a home inspection report are cosmetic. Some repairs are pressing and immediate and some repairs fall under the category of must budget for or replace and repair at a later point after you become the home owner. I have seen many deals fall apart during a home inspection because a buyer wants or asks for repairs that are cosmetic in nature. One way to avoid an unexpected or unpleasant home inspection is to ask a home inspector to do a pre-inspection walk thru with you prior to making an offer on a home. Some inspectors will charge. Some Inspector will charge a fee for this up front, but will compensate you on your full, written home inspection report.|
Post By Audeliz Angie Perez (160 Posts)
Angie Perez is a NJ Circle of Excellence award winning real estate agent for Weichert, Realtors in Edison. She sells anywhere from 12-25 houses per year on a consistent basis since 2005. Ms. Perez is primarily a buyer's agent on 60% of her real estate sales where she represents rental income investors, first time home buyers & trade up home buyers of 1-4 family homes within specific towns encompassing 4 NJ counties: Union, Essex, Middlesex and Somerset County. Many of Ms. Perez's clients appreciate her ability to negotiate favorable real estate deals for them. Many of her clients commented that her research abilities, her honesty, her knowledge of local market trends and her proficiency to manage multiple real estate transactions from start to close are some of the reasons why she was hired as their agent of choice. Please call, text or email Angie Perez to ask if she lists or sell in your town. If she can not help you, Ms. Perez would be more than happy to help or refer you to someone who can.
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