Here are the most common first time homebuyer mistakes and how you can avoid them:
Choosing to buy a house “going it alone”
Buying a home for the first time is a big deal!
If you are not familiar with the process, it can also be very difficult. It’s always in your best interest as a first time homebuyer to work with a buyer’s agent. This way, they can support you throughout the entire process, answer any questions you might have, and solve any issues that come up
Skipping the mortgage qualification process
It’s a common one of the first time homebuyer mistakes to try to shop for a house without first qualifying for a mortgage.
If you do not have a mortgage pre-qualification letter, then you don’t really know how much money you can spend on a home. Because of this, you need to partner with a mortgage loan officer as early in the process as you can to discover the potential size of your mortgage loan, as well as which loan product is best for you.
Failing to consider additional expenses
There are many hidden costs when purchasing a home for the first time. Most people know that they need to save up for their initial down payment, but what they forget are things like the ultimate costs of homeownership.
You can read all about them here.
Being too emotional throughout the process
Buying a home for the first time is likely the biggest financial transaction of your life so far. Because of this, one of the biggest first time homebuyer mistakes is being very emotional about the whole process.
If you love a house, it’s easy to overspend. If things aren’t going your way, it’s easy to get stressed out or overwhelmed. While picking a home is important, it’s equally as important not to get swept away. Partner with your real estate agent to remain calm, cool, and collected throughout the process.
Miscalculating your credit score
Don’t let your credit score change before you close on your house! Your credit score is one of the biggest determining factors for your mortgage. It lets the bank know how much money it should give you, as well as the interest rate attached to the loan.
You will want to make sure that your credit score doesn’t worsen thorough the process, or you could find yourself in a lot of hot water.
Are you looking for a friendly, helpful buyer’s agent or mortgage loan officer?
Our team can’t wait to work with you. Contact us today!