The real estate industry loves a first time buyer and will cut them a lot of slack to get them on the path to homeownership. Agents who work with first time buyers on a regular basis (like me) are accustomed to the errors that can crop up when you've never done this kind of thing before. However, there's a few mistakes that are easily avoided.
1. Looking at only price. A recent buyer client found a sweet deal on a 3 bedroom in Skokie for $79.9k. She also looked at a 2 bedroom in Morton Grove for $100k. However, the monthly payment for the 3 bed was $1253 while the monthly payment on the 2 bed was $1021. This is with the same down payment, same mortgage rates. When looking at a condo you need to consider not just the purchase price but the property taxes and the assessments. When looking at a single family home, it's property taxes and insurance. When you're browsing online for homes, make sure you take the monthly expenses into account. (more…)