Purchasing your first home in a beautiful area like Portland can bring out a whole host of emotions, from nervousness to fear of not finding the right place. Part of these emotions stem from the fact that if you’ve never been a home buyer Portland before, you might have no idea how the process usually goes. You can keep your eyes peeled for these frequent mistakes, though, and easily avoid them.
Neglecting To Secure a Mortgage Pre-Approval Early On
Though it seems like just another extra step in the process, securing a bank pre-approval for a mortgage can make sellers take you a lot more seriously, which can make a big difference in a competitive market like Portland. Rather than scrambling to get approved at the last minute, save yourself the struggle and get pre-approved before you head out on your first tour.
Forgetting To Save More Money Than Just the Down Payment and Closing Costs
So you’ve spent months, if not years, saving up a decent chunk of change to cover the down payment on your dream home, and if you’re savvy, you’ve also stowed away a bit extra to help cover the closing costs. What you might not realize as a first-time homebuyer, unfortunately, is that purchasing a home is going to require significantly more funds than you realized, even beyond the down payment and closing costs. For instance, there may be repairs that need to be done as part of the closing, or that could pop up right after moving in. Don’t forget that you’ll need to purchase homeowners’ insurance, too, as well as putting away money each month for property taxes and HOA fees. All in all, before you make your first offer, it’s best to ensure you have additional cash reserves, and that the down payment and closing costs won’t be eating up all of your liquidity.
Not Making Counteroffers on Homes That Pique Your Interest
A frequent situation first-time homebuyers run into that may scare many of them off is having their offer on a home countered, leaving them unsure how to proceed. While the process of negotiation may not seem as appealing as going with the first offer that’s accepted outright, if a home has truly piqued your interest, the negotiation may be well worth it. Don’t be afraid to make a counteroffer if you believe you’ve found the right property.
Being a first-time home buyer in Portland can be pretty scary if you aren’t familiar with the potential pitfalls. By knowing which mistakes to avoid early, though, you can quickly go from searching around to walking into your new home.