Home Buyers Mistakes to Avoid When Buying Your First Home
Common Mistakes When Buying Your First Home
When buying a new home, there are many exciting times ahead of you. To keep yourself and your investment safe, here are a few mistakes you should avoid making when buying the home of your dreams.
Not Knowing What You Can Afford When Buying Your First Home
Many first-time home buyers will go into the home buying process not knowing how much they can realistically afford. It is best to know how much you can afford before looking at houses that could be over your budget. It is smarter to look at lower-priced homes at the start to see what you are interested in and then go up from there. Use a mortgage affordability calculator to determine what price range is best for you.
Buying Your First Home After One Mortgage Rate Quote
It is important to shop around for mortgage rates before making your final decision. Mortgage rates vary by lender and have different benefits to offer their customers. Unfortunately, many homebuyers do not know that they should shop around for loans before settling with a certain lender.
Too Small of a Down Payment
Before deciding to buy a home, make sure you save enough money for an appropriate down payment. Figure out how much you need to save and put down the money you are comfortable with financially. The bigger the down payment, the lower your monthly mortgage payment will be. You want to put enough money down to make your monthly payment more affordable. This does not mean that you need to put down 20% but put down what you can afford.
Ignoring All Loan Types
First-time homebuyers are excited about their new home journey and sometimes pick a mortgage loan without researching all loans available to them. However, many government loan programs make buying a loan easier with zero or little down. Examples include VA loans, USDA Loans, and FHA Loans.
Emptying Your Savings
Before buying your first home, save up enough money for a down payment, mortgage payments, other monthly payments, and an emergency fund. If you are not sure how much you need to save, contact one of our agents to go over payment estimates and moving expenses.
Shopping for a House Before Getting a Pre-Approved
Looking at houses both online and in-person is exciting, but looking at homes before knowing what you can afford is dangerous. Do not look at houses before finding out the amount you can borrow. If you do not do this, you may fall in love with a home that is way out of your price range. Instead, talk to a mortgage professional about getting pre-approved for a loan to understand your budget and the amount you can afford for a house.
Ignoring Repair and Renovation Costs
First-time homebuyers sometimes forget to include home renovations into their budget. If you plan on doing home repairs, always get more than one repair estimate before settling with a contractor. Renovations are not easy and quick like television makes them look. Put renovations into your saving plan and prepare for issues in your new home that you will have to fix.
Buying your first home is a big decision. Don't make common mistakes that many first-time homebuyers fall victim to. Our team at HomeHunt can help you make the best decisions when it comes to buying a home.