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10 Mistakes First-Time Home Buyers Make
Want to buy a house? To nab the best deal, don't make these moves.
 
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Posted 2:10 PM EST October 29, 2009
kooldan1 SmartMoney Insiders
1 Comments
This is a great article, especially the part about having a "buyers agent". my wife and i just went through a terrible experience because the agent was working for the seller...this should be the #1 mistake on the list!
Posted 9:34 AM EST June 18, 2009
caroljackson SmartMoney Insiders
1 Comments
Taxes and insurance prequalification is indeed a front end action in a transaction; however, at time of pre-approval the lender has to make a guess as to those figures since each property and each purchaser is unique. Insurance rates are now credit-driven and different for each property per the appraisal, and property tax rates are determined in some areas as to whether they are homestead properties or investment properties. Those rates can vary, so each property's taxes need to be researched by the buyer's agent for clarification up front.
Posted 1:08 PM EST April 06, 2009
Posted by: sandandsea
One correction: you need a contingency if the appraised price comes in UNDER the purchase price (not over). Sometimes if it comes in lower, you need to put a larger downpayment to make up the difference.
Posted 11:53 AM EST April 06, 2009
Posted by: clynema
Even though most programs require taxes and insurance be included with the monthly payment it is important to have an idea of how taxes are determined and to prepare a worse case increase and how you are going to handle the increase when you get a notice from the lender. A good mortgage professional should be able to help you with this.

Not all purchase contracts have contingencies and when purchasing a bank owned home those addendums nneed to be gone over prior to finalizing the purchase contract. A good buyers agent should be able to go through this with you.

ctal@sbcglobal.net
Posted 1:00 PM EST April 02, 2009
JSLurkin SmartMoney Insiders
4 Comments
A few minor corrections to the article: Most lenders require that taxes and insurance be included in the monthly payment and held in escrow by the lender. Consequently, any "budgeting" is automatic.

Secondly, in many states, the standard real estate purchase form establishes the contingency that if financing is unattainable, the contract is void.
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Comments From Around the Web
Posted: 5:36 PM EST November 24, 2009
Posted by: PropertyHunting on Twitter

RT @TheStagers: Mistakes first-time home buyers make http://is.gd/OiLp

Posted: 1:44 PM EST November 24, 2009
Posted by: Jamie_Mason on Twitter

First time home buyers: avoid these 10 common mistakes http://ping.fm/wZ11K #realestate

Posted: 11:54 PM EST November 23, 2009
Posted by: TheStagers on Twitter

Mistakes first-time home buyers make http://is.gd/OiLp

Posted: 9:58 PM EST November 11, 2009
Posted by: aaxamortgage on Twitter

Great Info for 1st Time Homebuyers - Top 10 Mistakes First Time Homebuyers Make - http://bit.ly/3rWlZq

Posted: 11:54 PM EST October 23, 2009
Posted by: TheStagers on Twitter

Mistakes first-time home buyers make http://is.gd/OiLp

Posted: 7:16 PM EST September 25, 2009
Posted by: liveocgirl on Twitter

10 Mistakes First-Time Homebuyers Make http://bit.ly/52UDf

Posted: 11:54 PM EST September 23, 2009
Posted by: TheStagers on Twitter

Mistakes first-time home buyers make http://is.gd/OiLp

posted 11:11 PM EST April 13, 2009
Posted by: texashaze on Free Money Finance

Don't fall for your agent saying "...another person has just made an offer on the house... you should be aggressive with a high bid". I've bought two houses. The first one I fell for it and when I bought my next house 4 years later a different agent said the same thing. That time I didn't fall for it and AMAZING, they accepted our low offer!

posted 11:04 AM EST April 13, 2009
Posted by: Anne Pridescooter on Free Money Finance

Error in buying --> is the result of letting the impulse do the talking. Your list is quite a great standard to follow.

posted 10:33 AM EST April 13, 2009
Posted by: MonkeyMonk on Free Money Finance

To add to Christine's #11: Failing to heed the mantra of "Location, Location, Location." In my experiences of buying and selling real estate this is one of the most, if not the most, important factors to keep in mind when buying a house.

posted 8:55 AM EST April 13, 2009
Posted by: Christina on Free Money Finance

oops! 14) should read window coverings... not wall... I think I'm sugar crashing after the holiday.

posted 8:51 AM EST April 13, 2009
Posted by: Christina on Free Money Finance

This is a great list! I would add a few more: 11)Ignoring the neighborhood. Be sure to take a close look at how the neighbors take care of their property and notice any businesses that may be nearby. 12)Not planning for the future. Will the house be large enough for children? Will it be set up well for little kids? If something happened to my mobility, would I still be able to comfortably live in the house? I know so many people that only consider what they want/need right now, and don't even think about the house they may want in 5-1o years. 13) Failing to budget for home owner's insurance. 14) Failing to nail down the specifics of what is included. When we last moved, the buyer did not specify that he wanted the wall coverings... so we took them with us to our new house.... saved us a bunch, but cost them a lot extra. Be sure you know EXACTLY what appliances and fixtures are staying with the house so there won't be any surprises later!

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