When you embark on the exciting journey of buying a home in Virginia Beach and Hampton Roads for the first time, it can be overwhelming and sometimes even daunting. In actuality, the home buying process should begin long before you first set out to begin viewing possible new homes.
Because purchasing real estate in Virginia Beach, Chesapeake, Norfolk, Suffolk, or Hampton Roads is one of the most expensive decisions you’ll probably make, its very important to be properly prepared by planning, researching and investigating all avenues.
By doing your homework before you begin the home-buying process, youll be less likely to make some of the most common mistakes that first-time home buyers typically make. In this article, well discuss the most common mistakes and how to avoid making them.
- The first mistake most new home buyers in Virginia Beach and Hampton Roads make is that they really do not know how much they can afford. Before you even decide to buy a house, you should have tracked all your monthly expenses (excluding rent) for about 3 – 4 months. Some of the expenses you should be tracking include lunches and dinners out, entertainment, coffees purchased and even things like pizza deliveries.
After all your expenses have been tracked for about four months, subtract all those miscellaneous costs from your net salary. Whatever you have left reflects the monthly house payment figure you can reasonably afford (including mortgage, home owners insurance and real estate taxes). Once youve done this, youre ready to get yourself pre-approved for a mortgage. Whether conventional, FHA, or VA, there are many mortgage programs available. You can use the mortgage calculator for estimates. - The second mistake made by first-time home buyers is that contact a real estate agent to show them homes before they do any research on their own. Its better to do some research on your own first by visiting open houses and touring new home communities, as well as reading the newspaper and real estate magazines to find out prices of homes in the area youre interested in. By the time a Realtor® gets involved, its best to have a general idea of the neighborhoods (search here) you want to buy in, the features that are important to you and the price range you can afford.
- The third mistake first-time home buyers make is that when they buy a new construction home they agree to upgrades and added features that the builder furnishes. This is a very expensive way to buy upgraded landscaping or new appliances. These upgrades not only increase the monthly payment the home buyer will make, there is an additional 30 years of interest added to the cost!
- The fourth mistake new home buyers commonly make is that they end up purchasing the most expensive home they can possibly afford. Its easy to get caught up in the excitement and go after the biggest, most expensive home they can be qualified for. The problem with this is that it leaves little or no disposable income and can lead to problems down the road.
Avoiding these common mistakes will lead to a more peaceful experience during the home buying process. All it takes is a little preparation and planning. Buying a new home for the first time is a special and exciting journey, so slow down and enjoy each individual step. As always, ask your REALTOR® for assistance.
{ 3 comments… read them below or add one }
Excellent advice. So many buyers are drawn to new construction based on the advertised price, but end up buying with a load of extras and pushing them into a higher price point.
I found my way here from Michael Martine @ Remarkablogger.
New home construction can really trip up a home buyer if they aren’t careful.
And buying the most expensive home is a huge mistake. I have seen people do this and then they end up with several rooms unfurnished and unused. But they are paying monthly for it.
Great tips! – Ashley
Very good article. Many new home owners just jump in head first and don’t even think about the money they are throwing away on things like coffee, eating out etc. Tracking this information could help anyone regardless of whether they are buying a home or not.
Would you like fries with that? The builder will always try to get them with those upgrades. Home buyers should figure out how much it would cost to do some of these projects after they move in. In many cases they will find they can save some big dollars.
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