Buying your first home is an extraordinarily exciting time — but remember, you are a rookie! Mistakes are almost inevitable, but some can cost you a lot more than others.

To better prepare you to buy a home in Birmingham, AL, let’s take a look at some of the most common mistakes first-time home buyers make.

(Birmingham is a great place to buy your first home!)

#1: Not Considering All the Costs

Most people start looking for a home when their finances seem stable enough to cover a monthly mortgage payment. Unfortunately, there are a lot of other costs to consider (and we aren’t talking about small things like higher utility bills). Closing costs, homeowners insurance, taxes, and maintenance are all pricey expenses that must be accounted for. It’s best to work out a detailed budget before making an offer.

#2: Blinded by the Internet

Don’t get us wrong — the internet is super convenient, but it is a little misleading when it comes to home buying. Online real estate websites are filled with beautiful homes for sale at extremely desirable prices. However, these houses are almost always too good to be true. A lot can be done with a little bit of photo editing!

#3: The Credit Score Check

You know your credit is going to get checked throughout the home buying process, but did you know it’s a good idea to check it beforehand? Statistics show that around 80% of credit reports contain some sort of error, and 25% of those credit reports hold errors that could cause significant damage. Checking ahead gives you time to fix these errors and be better prepared for the type of interest rates you will be offered.

#4: Skipping the Pre-Approval

As a first-time home buyer, it’s easy to get excited and jump right into touring homes. You think, “I’ll just see what’s out there,” and then you find the home of your dreams — but you aren’t pre-approved for a loan!

Sellers are more likely to take an offer from a pre-approved buyer — and if the home is as good as you think it is, chances are it has (or will have) multiple offers. A pre-approved loan makes your offer more desirable to the seller!

#5: Neighborhood Watch

First-time home buyers are often so eager to close on a home that they forget to check out its surrounding areas. It is very important to take a tour of the neighborhood you are looking into (during the day and at night). Is the neighborhood safe? Is it zoned for a good school system? Are there amenities nearby (grocery, gas, healthcare)? These are all very important aspects to consider, especially if you might bring children into the world someday.

#6: Not Thinking About the Future

Speaking of children, do you have them or want them? Home buying is a major decision, and big events (like having a baby) can steer your life in directions that you never expected. Consider the likelihood of having to move. Will it be easy to sell your home? Young individuals (especially millennials) are attracted to unique homes, but they don’t always consider how these homes would sell to the typical home buyer.

#7: Playing a Solo Game

You can read a million and one real estate blogs online, but the reality is, you are not a real estate agent. Would you try to fix your broken arm on your own? No — you’d go to a doctor! As a first-time home buyer, it is essential that you seek professional guidance.

Buy a Home in Birmingham, AL

If you want to buy a home in Birmingham, AL, you are on the right site! Our professional real estate agents have a vast knowledge of the market in the Birmingham area and want to help you! Contact us today to get started!