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5 Common Mistakes To Avoid As A First-Time Home Buyer

Front Door to a Home

Some first-time homebuyers do not find it easy, considering how complex the entire home buying process can be. However, navigating the whole process will be easier when you have the right information and guidance.

First Time Homebuyers

This post highlighted the five most common mistakes we have seen first-time home buyers made over time. Read on to know these mistakes and how to avoid them.

  1. Inadequate research.

The first step is to assess your financial capability, as well as your assets and liabilities. Know where you stand before seeking a mortgage. After you’ve mortgage pre-approved, proceed to start viewing properties in your locations of interest. Adequate research is necessary to ensure you are investing in a neighborhood with adequate amenities, including transport facilities, schools, healthcare, and others.

2.   Choosing the wrong mortgage.

There are different mortgage finance products out there, each with different specifics and propositions. Take time to examine each mortgage loan product option. As a first-timer, this may be slightly difficult. We recommend that discuss the mortgage process & products with a loan officer to help you through the entire process.

Mortgage Lender

3.   Wrong timing.

When it comes to real estate deals, the right timing is relative. But it is easy to miss the right timing if you are waiting for the prices to come down. The laws of demand and supply will always be in play. So, playing a long-term strategy may not always be the right move.

4.  Exceeding your budget.

You should set a budget and stand by it. You will always find tempting homes that will most likely be beyond your budget. You might want to avoid houses that are beyond your range, no matter who recommends them or how attractive they are. Always stay within the limits of your budget to avoid financial troubles.

Home

5.  Giving in to emotions.

‘Love at first sight’ exists pertaining to locating a new home. You just see a great house and you immediately like everything about it. While there are good chances that you will like a property, you must learn to keep emotions in check.

No matter how great the love is, ensure that you try not to beyond your budget limit. If the property costs more than you can afford, it is simply not for you.

Finally, avoiding the mistakes above will make your home buying process seamless, despite being a first-time homebuyer.

RE/MAX Results
Shannon Lindstrom, Realtor
Direct: 612-616-9714
www.ShannonLindstromRealtor.com
www.ShannonLindstrom.info

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4 Reasons People Are Buying Twin Cities Urban & Suburban Condos & Homes in 2021

Buying a Twin Cities Homes

According to many experts, the real estate market is expected to continue growing in 2021, and it’s largely driven by the lasting impact the pandemic is having on our lifestyles. As many of us spend extra time at home, we’re reevaluating what “home” means and what we may need in one going forward.

Here are 4 reasons people are reconsidering where they live and why they’re expecting to buy a home this year.

1. Record-Low Mortgage Interest Rates

In 2020, the average interest rate for a 30-year fixed mortgage hit a record low 16 times, continuing to fall further below 3%. According to Freddie Mac, the average 30-year fixed interest rate today is 2.73%. Many wonder how low these rates will go and how long they’ll last. Len Keifer, Deputy Chief Economist for Freddie Mac, advises:

“If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.”

This sense of urgency is driving many to buy this year.

2. Working from Home

Remote work is a new normal for many businesses, and it’s lasting longer than most expected. Many in the workforce today are discovering they don’t need to live close to the office anymore and they can get more for their money by moving a little further outside of the city limits. David Mele, President at Homes.com, says:

“The surge in the work-from-home population has rewritten the playbook for many homebuying and rental decisions, from when and where to relocate, to what people are looking for in their next residence.”

The reality is, for some people, working remotely in their current home is challenging, especially when there may be other options available.

3. More Outdoor Space

Another new priority for homeowners is having more usable outdoor space. Being at home is driving those in some areas to seek less densely populated neighborhoods so they have more room to stretch their legs. In addition, those living in apartments and townhomes are often looking for extra square footage, both inside and out.

According to the State of Home Spending report by HomeAdvisor, of the households surveyed, almost half reported spending 27% more on outdoor living over the past year. This is a trend that’s expected to grow in 2021 and beyond.

Gas Fire Pit

4. Avoiding Renovations

It’s recently come to light that many homeowners would also rather buy a new home than go through the process of fixing up the one they have. According to the 2020 Profile of Home Buyers and Sellers report from the National Association of Realtors (NAR), 44% of homebuyers purchased a new home to “avoid renovations or problems with the plumbing or electricity.”

Depending on what needs to be addressed, today’s high buyer demand may make it possible to skip some renovations before selling. Many of these homeowners have prioritized buying over renovating for convenience and potential cost savings.

It’s clear that homeownership needs are changing. As a result, Americans are expected to move in record numbers this year. If you’re trying to decide if now is the right time to buy a home, let’s connect today to discuss your options.

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How to Make the Dream of Homeownership in the Twin Cities a Reality This Year

In 1963, Martin Luther King, Jr. inspired a powerful movement with his famous “I Have a Dream” speech. Through his passion and determination, he sparked interest, ambition, and courage in his audience. Today, reflecting on his message encourages many of us to think about our own dreams, goals, beliefs, and aspirations. For many Americans, one of those common goals is owning a home: a piece of land, a roof over our heads, and a place where we can grow and flourish.

Shannon Lindstrom Realtor

If you’re dreaming of buying a home in Minneapolis, St. Paul, or the surrounding suburbs this year, start by connecting with a local real estate professional like RE/MAX Results – Shannon Lindstrom, Realtor to understand what goes into the process. With a trusted advisor at your side, Shannon can then begin to answer the questions below to help you achieve your goal for homebuying success.

1. How Can I Better Understand the Process, and How Much Can I Afford?

The process of buying a home is not one to enter into lightly. You need to decide on key things like how long you plan on living in an area, school districts you prefer, what kind of commute works for you, and how much you can afford to spend.

Keep in mind, before you start the process to purchase a home, you’ll also need to apply for a mortgage (if you’re not paying cash). Mortgage lenders will evaluate several factors connected to your financial track record, one of which is your credit history. They’ll want to see how well you’ve been able to minimize past debts, so make sure you’ve been paying your student loans, credit cards, and car loans on time. If your financial situation has changed recently, be sure to discuss that with your lender as well. Most agents have a resource list of loan officers they trust and per request they will provide it to you.

Make It Happen

According to ConsumerReports.org:

“Financial planners recommend limiting the amount you spend on housing to 25 percent of your monthly budget.”

2. How Much Do I Need for a Down Payment?

In addition to knowing how much you can afford on a monthly mortgage payment, understanding how much you’ll need for a downtown-payment is another critical step. Thankfully, there are many different options and resources in the market to potentially reduce the amount you may think you need to put down.

If you’re concerned about saving for a down payment, start small and be consistent. A little bit each month goes a long way. Jumpstart your savings by automatically adding a portion of your monthly paycheck into a separate savings account or house fund. AmericaSaves.org says:

“Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded.”

Before you know it, you’ll have enough for a down payment if you’re disciplined and thoughtful about your process.

3. Saving Takes Time: Practice Living on a Budget

As tempting as it is to pass the extra time you may be spending at home these days with a little retail therapy, putting that extra money toward your down payment will help accelerate your path to homeownership. It’s the little things that count, so start trying to live on a slightly tighter budget if you aren’t doing so already. A budget will allow you to save more for your down payment and help you pay down other debts to improve your credit score.

Save for Down Payment

A survey of millennial spending shows, “68% reported that shelter in place orders helped them save for their down payment.” Danielle Hale, Chief Economist at realtor.com, also notes:

“If there is any silver lining to the current economic landscape, it’s that mortgage rates are hanging around record lows…Additionally, shelter-in-place orders helped many who were fortunate enough to keep their jobs save for a down payment — one of the largest hurdles of buying a home. The combination of low rates and the opportunity to save is enabling many millennials to move up their home buying timeline.”

While you don’t need to cut all of the extras out of your current lifestyle, making smarter choices and limiting your spending in areas where you can slim down will make a big difference.

If homeownership is on your dream list this year, take a good look at what you can prioritize to help you get there. To determine the steps you should take to start the process, let’s connect today.

If you’re looking to buy a home in Minneapolis, Saint Paul, or the surrounding suburbs, please feel free to contact RE/MAX Results – Shannon Lindstrom, Realtor @ 612-616-9714 or visit www.ShannonLindstromRealtor.com today. I can help you achieve your goal of homeownership!

Twin Cites Home
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A Millennial’s Guide to Homeownership

A-Millennials-Guide-to-HomeownershipDownload

The Millennial Guide to Homeownership is to provide you with the information you will need to make the best decision for you and/or your family in regards to homeownership.

If you have questions pertaining buying a home, please feel free to call, text or email Shannon today!

RE/MAX Results
Shannon Lindstrom, Realtor
Direct: 612-616-9714
Lindstrom_S@msn.com
Shannon@ShannonLindstromRealtor.com
www.ShannonLindstromRealtor.com
www.ShannonLindstrom.info

Millennial