It happens every day. First-time home-buyers make costly mistakes. This report is designed to help you become an educated consumer and avoid the mistakes that others have made.

1. Not having a Realtor® representing YOU.
Acquiring the services of a buyer’s agent means that you have a licensed real estate agent representing YOU during the search and purchase of a home – not the seller. Sellers have always been represented by an agent, but now you can have your own agent guiding you through the process of buying your first home. As the buyer, you are entitled to the same representation and level of service as sellers. Remember, there is no cost to the buyer for the service of a buyer’s agent. The buyer’s agent is paid from the listing agent’s commission.

2. Not planning ahead.
From the moment you think about buying a home, start planning. Homebuying is a time-consuming and demanding process, and you need to utilize your management skills early on. Meet with your buyer’s agent about the best mortgage resources and reputable professionals to get the pre-approval process going.

3. Failing to understand the home buying process.
Buying your first home can be intimidating and confusing with multiple page contracts, counter offers, negotiating tactics, inspections and legal implications. As a first-time homebuyer, you should ask lots of questions. So choose a real estate agent who has experience working with first-time homebuyers and is willing to explain the entire home buying process and answer your questions. An experienced buyer’s agent will be able to explain all aspects of homebuying from viewing homes to negotiating, to financing and closing.

4. Getting in too deep.
Getting in too deep can happen when homebuyers shop outside their budgets. Talk to a buyer’s agent who can provide insight into home expenses, moving costs, taxes, insurance and other things you may not think of. It’s best to ask your lender to pre-approve, rather than pre-qualify you for a mortgage. Prequalification only tells how much you can afford. Pre-approval goes a step further. Having your loan pre-approved gives you a sizable advantage when making an offer.

5. Signing a contract without understanding it.
Read the contract. It’s the first step to understanding what’s required of you, the buyer, as well as the seller. Your buyer’s agent can be a great resource in explaining each section and what it means. You’re signing a binding, legal document. Make certain you understand the conditions of the contract.

6. Buying in an unknown location.
Don’t stop your inspection at the property line. Examine the surrounding neighborhood. Is it safe and well maintained? Is it convenient? If you’re not familiar with the area, do your research. Learn from the mistakes of others. It’s the best way to ensure a first-time homebuyer a good night’s sleep.

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