The home buying process can be extremely exciting for a first-time homebuyer, but can also be confusing and intimidating for someone who has no experience in real estate. To ensure that buying your first home goes as smoothly a possible, American Tri-Star Insurance in San Diego, CA, shares a few novice mistakes often made by first time homeowners.
Not Shopping for the Right Loan Type and Interest Rate
Interest rates vary from day to day, but some banks or private loan companies won’t tell you that. Be sure to shop around for the lowest interest rate and the best loan type. Various loans have hidden terms that first time homeowner’s need to know about. There are several types of loans available, and some are bound to fit your needs more closely than others. It’s important that you do your due diligence and research the best one for your individual needs and budget.
Not Being Realistic about How Much you can Afford
Are you looking at homes in San Diego out of your price range? Did the bank tell you, you could afford $300,000 but you are looking at homes starting at $399,000? Although most homeowners will negotiate, you can’t assume they will drop the price substantially. Figure out a realistic budget, and stick to it.
Not Obtaining a Thorough Home Inspection
Many people just want to get this step over with so they can proceed with the process of buying their dream home. One must realize that it is important to get a thorough home inspection so that if anything is wrong it can be negotiated into the contract. Look for a trustworthy inspector who is familiar with the area you are looking to buy and type of building construction.
Not Purchasing Homeowner’s Insurance
Several people wonder if San Diego homeowner’s insurance is something they really need to buy. Costs typically range anywhere from $80-200 a month depending on your home’s size and location, however cover numerous things including fire, theft and water damage. Protecting your largest investment is something not to look over.
Have other questions about buying your first home in San Diego and budgeting for associated homeowner’s insurance costs? Reach out to American Tri-Star Insurance at 619-272-2100 and speak directly with an experienced and trusted San Diego insurance agent or get a free online insurance quote today.