5 Common First Time Homebuyer Mistakes to Avoid
Nov 02, 2016 | First Time Homebuyer
Buying your first home should be a happy and pleasant experience, but all too often, it turns into a stressful one. Listed below are five common mistakes made by first time homebuyers and how to avoid them.
How to Avoid Common Homebuyer Mistakes
1. They Forget to Factor in Important Expenses
Many first time homebuyers think they are ready to buy their dream home because they can afford mortgage payments, but that isn’t the only expense homeowners pay. Be sure to keep in mind property insurance, taxes, homeowners association dues, maintenance, and electric and water bills when looking for a place to live.
2. They Skip a Home Inspection
Many first time homeowners skip a home inspection in hopes to dodge the costs associated with it. That sort of thinking can lead to major problems down the road, costing thousands of dollars to fix. Many problems, including mold, foundation cracks, and water stains, can only be seen by a trained inspector.
3. They Don’t Check their Credit Scores
Before you begin your house hunting, you should check your credit score. The earlier you check it, the more time you have to dispute any mistakes. It also allows you to try to raise your credit before you get a quote. The cleaner and higher your credit score is, the lower your interest rate will be on your mortgage.
4. They Don’t Create a Long-Term Budget
To avoid any problems in the future, it is best for you to create a budget before you begin looking for a home. You do not want to be overambitious and end up behind on your mortgage payments, as that can ruin your credit for years to come. To come up with how much money you can afford, develop a budget that devotes one third of your monthly household income to housing costs.
5. They Don’t Seek Professional Help
While it is possible to purchase a home without a real estate agent, first time buyers should take advantage of all the benefits agents can offer. They have access to all homes on the market, can make the appointments, can create comparative market analyses, meet with inspectors, as well as provide insight on negotiations. Though you should interview your realtor to be sure before making that final determination.
Apply for a Mortgage Today
If you’re thinking of buying your first home, you’re going to have questions about your mortgage. Trust the professionals at Home Point Financial to guide you through the process and find the best scenario for your needs. For more information, please contact us today.