I know there are dozens of these lists available online, but I think it is important to discuss some of the most common problems I have seen first time home buyers run into, so that you can try to avoid them. There is nothing worse than getting a week to closing and having to drop a contract because you forgot to account for something (and, thus, losing your deposit). Nothing worse, except for getting two weeks past closing, and realizing you own a house you wish you didn’t.

The most common reason clients will run into this is money. Whether it is money to put down, money to cover closing costs, or money to cover the mortgage, money is a huge factor for most first time home buyers. And money functions very differently for buying a house than it does for renting. You will not know your true monthly mortgage payment until you lock in a rate, know the exact annual taxes, and have quotes for homeowners insurance. So while an online calculator may have told you that you can afford a $300,000 house, until you really work the numbers with a qualified mortgage professional, that is only a guess. Similarly, closing costs and down payments are subject to change until the HUD-1 is in writing, so if you are guestimating that closing costs will be roughly 2% of the home price, that could be a huge over – or under – estimate. Please, discuss this with your lender before making any decisions (like putting in an offer on a house).

The next most common issue clients run into is not sticking to what they need. They either fall in love with a house in a neighborhood an hour from work, or they decide to buy a three bedroom house when they know they need a four bedroom, or they forgo a basement when they need the space for a play area. Just because a house looks shiny and nice when you walk in does not mean it is the right house for you. Listen to your Realtor and find a house that suits you, do not try to suit a house.

Similarly, I have many clients who are too picky when they go looking. They will see two hundred houses and not find one that is acceptable. If you lack the vision to see what a house can look like with your stuff in it or a few cans of fresh paint on the wall, let your Realtor guide you. No house is going to be perfect, unless you have it built (and even then there will be problems), but many houses can become perfect with a little elbow grease. Find a house that has what you need (number of bedrooms, bathrooms, yard, etc.), and see if you can’t make it your dream home.

And finally, have your home inspected. I have had too many clients to count that have called me within a few weeks of closing asking if there was any way to renege on the purchase because of some catastrophic problem. The problems range from pipes that leak or don’t work to mold to uneven foundations to electrical problems to unevenly graded yards. Even if you are very handy or you are buying a new house, it is important to have an objective third party inspect your home; you don’t want to be stuck in a lemon.

These are just a few of the most common issues first time home buyers seems to run into. If you are in the market for a house in the Michigan area and have never bought one before, please contact me and I will go over your options more in depth, and give you all of the pitfalls we want to avoid in your unique situation. And if you have any other common issues first time home buyers should consider, please leave a comment