Common First Time Home Buyer Mistakes

As a first time home buyer you are prone to making a lot of mistakes. However if you can avoid them you can turn this nightmare into a pleasant dream of owning a home

First, changing jobs during the home buying process is a definite no-no! Lenders like to see employment stability and job tenure, and as a general rule will hold job hopping against you.

Second, never give earnest money deposits directly to For Sale by Owners. If the deal falls through you won't have any leverage to get it back. Instead, put the deposit into a trust account until the transaction is finalized - title companies, attorneys and closing agents can help you with this.

Third, stay practical and realistic during the home buying process and understand that while some sellers are willing to fix their homes to sell them others aren't.

Fourth, arrange in advance to have the utilities turned on in your new home. The utility companies usually need at least a few days to switch the service. Also, don't forget to cancel the service at your old residence.

Fifth, be sure to get hazard insurance for your new home and be able to show proof of purchase prior to closing. Failure to have insurance at the time of closing may delay the closing, which could result in all kinds of unforeseen complications; angry sellers, you've already given notice to move out of your old place and have no place to go, etc.

Sixth, purchasing a home is a business deal, so treat it that way. Don't get too close and personal with the seller, as it could unexpectedly lead to hurt feelings and/or deal breaking situations.

Finally, use an agent, unless you're well schooled in real estate transactions. It's most buyer's fantasy to save money by cutting out a Realtor. However, it's a full time job keeping up with all of the daily details of a contract, including the lender, the seller, and the seller's agent. It'll be your agent's responsibility to do all of this; as well as disclose any information that they are aware of that you might otherwise be unaware of.

Buying a home is a business transaction and may be one of the largest transactions you'll ever make. By treating it that way and surrounding yourself with knowledgeable professionals you can have smooth, safe transactions.