Common Mistakes Most Home Buyers Make By Generation

Common Mistakes Most Home Buyers Make By Generation


mistakes-most-home-buyers-make

Let’s face it, we all make mistakes! That’s a reality and that’s how we learn in many cases. When it comes to real estate, buying a home for the first time can be one of the most exciting, intimidating and overwhelming experiences for many buyers. In this blog, we listed some of the common mistakes most home buyers make in all age groups:

20’s – Getting the Wrong Mortgage

Younger buyers may want to consider a lower down payment loan – like an FHA loan or low-down payment conventional loan – to reduce their initial out-of-pocket expense while locking in an interest rate. Some young buyers get ARM’s, which are adjustable rate mortgages since they have a low introductory interest rate. An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. Normally, the initial interest rate is fixed for a period of time, after which it resets periodically, often every year or even monthly. The thinking is that they will earn more money in the future, so when the rate increases, they will be able to afford the new monthly payment.  However, ARM’s carry a lot of risks and even though interest rates have been at historic lows for years, they are starting to creep back up. What happens in rates increase, but your home value falls? This is where they realize the mistake!

30’s – Not Thinking About the Future

When home shopping, you must consider whether or not you plan to start a family in the future. Even single people should keep this in mind as life can change quickly. A sleek, modern 1-bedroom condo may make a great home for a single person, but in a few years, it may not make any sense at all. Think long term when buying a home.

40’s to 50’s – Overestimating Your Budget

Figuring out your budget is a key step for buyers of all ages, but especially those in this age group. Buyers in their 40’s and 50’s tend to have more money saved, which can lead to overestimating their budget. They can easily end up buying a house that they really cannot afford once monthly payments were being considered of which they typically last 30 years.

60’s and up – Falling in love with a vacation home

Your vacation home can be your full-time home, but just be sure to factor in all of the costs, before making the move. Once you get into your 60’s and above, retirement is here or coming soon. Many retirees go on vacation, fall in love with a place, and make plans to move. Relocating and buying a home is an expensive process, so be sure to familiarize yourself with the new place before buying, so you won’t fall into the same mistakes most home buyers make if you fall into this age group.

At CPD Homes, we eliminate those mistakes most home buyers make, and that real estate agents hate about buyers so you will be on the right track!  Being informed is the key to a smooth and successful home sale or purchase.  At CPD Homes along with our partners at Keller Williams Greater Cleveland – The WLee Team, we drive success and arm you with the knowledge to make the best decisions and save you valuable time, money, and stress.  A brief phone conversation with us may be life-changing.  Call us now and we are more than willing to assist and guide you, as we agents can help make your dream home come true!  You may reach us at 216-282-4332.  You may also reach us at this link – www.cpdhome.com or like us on Facebook.  We’ll be glad to talk with you!

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