This article is a perfect starting place for first time homebuyers. Learn the most common mistakes made by first time homebuyers so you can avoid them, saving yourself money, time, or embarrassment.
Here are some of the most common mistakes made by first time homebuyers:
Not Knowing Their Budget
There are many expenses to consider as you enter the real estate market. It’s hard to know what one’s income can handle without first receiving some expert advice. Consult with a financial planner to gain a realistic overview of your budget for a home so you don’t get stuck with a house that’s challenging to afford.
Not Getting Pre-Qualified for Their Mortgage
Instead of going to a bank to learn what a family will actually be approved for, many first time homebuyers merely look online to find out average offers for people in their life stage. While helpful for gaining a ballpark figure, no one can tell you what a bank will offer except the lending bank itself.
Get pre-approval before you start shopping for the house, and don’t forget to consider offers from multiple banks, not just one.
Choosing Not to Hire a Home Inspector
Hiring a home inspector is a small expense that some first time homebuyers try to skip. Having your future home inspected, however, can be an investment that saves you a lot of trouble, heartache, and money.
The inspector’s job is to provide an unbiased, third-party opinion about the state of your future home. It’s an important assessment that at the very least buttresses your confidence in this big decision, and at most can save you thousands of dollars or from making a poor real estate investment.
Making The Smallest Possible Down Payment
Many first time homebuyers think making the lowest possible down payment is a good strategy. In reality, the more money you can allocate toward the down payment, the better. The sooner you pay off your mortgage, the less you’ll end up paying for the home because of interest rates. A large down payment is a great way to get some equity in your new house.
Not Researching First Time Homebuyer Programs
Federal and state first time homebuyer programs can empower families to more easily buy the home of their dreams. Do your research to see what you qualify for!