Buying a home is a complicated process with a lot of moving parts to keep track of, especially if it’s your first time. Don’t make these easily avoidable, yet extremely common “first home-buyer” mistakes. (As told by Simpsons GIF.)
Being unrealistic mistakes with your budget.
It’s important to figure out your financial situation before even starting the home search. If you take a chance and ballpark your price range- you may be in for a disappointing surprise later. You’ll want to take all expenses involved into account, from your upfront down payment, to the cost of home inspection, mortgage insurance, attorney fees, etc.
After all is said and done, what can you realistically afford to pay each month?
Not taking the time to get pre-approved.
Hand-in-hand with the previous mistake, you won’t want to skip out on getting preapproved for a mortgage. Getting your finances in order and then meeting with a lender will let you know exactly what you can afford- and what they’re willing to lend you.
Having preapproval for a mortgage will also make you more attractive to sellers. They’ll see you as a serious buyer who has the means to make the purchase. You’re more likely to close a deal quickly if you’ve done this ahead of time.
Unintentionally dropping your credit score.
This one may seem like a silly mistake, but you’d be surprised how many times I’ve encountered it. When you’re looking to purchase a home, you’ll want to avoid any actions that change your credit score. Once you’ve been preapproved, any drop in your credit score can in turn disqualify you for your ‘conditional’ loan. That means no opening a new Costco card to save 15% on your purchase or running up your debt with a new Macbook.
Not getting the home inspected.
Skipping a home inspection may help save some money upfront, but it will most likely end up costing you more than you saved down the road. Before signing the dotted line, you’ll want to make sure to get a professional with a trained eye to take a look around. You never know, the home inspector may just find a problem that you’re not willing to come to terms with. Better safe than sorry!
Not preparing for the process ahead of time.
As you’ve probably already realized from reading this post, buying a home (especially for the first time) is a complicated process with many moving parts involved. Mapping out and planning the steps in the homebuying process is what I’m here for. All of the mistakes I’ve mentioned above can easily be avoided with a well organized plan.
Trying to go through the process on your own.
Purchasing your first home is one of the most important (and capital intensive) decisions of your life. When large sums of money and legal contracts are involved, it’s smart to have a professional, with experience, on your side. My job is to understand the market, know each and every step involved, be your support, advocate on your behalf and and most importantly help you through the process making sure everything goes smoothly.
If you’re interested in becoming a first-time homeowner, don’t risk making one of these costly mistakes by going at it on your own. Contact me today and let’s make a plan. I’ll walk you through all the steps, from start to close.