The purchase of a home is the largest investment and purchase a person will ever make. It doesn’t matter if you’re looking for your first home or if you expect to be ready in a few years. Knowing the common errors to avoid is just as important as the helpful tips .
You don’t need to worry about buying a house. There are many things you can’t plan for. But knowledge is power. The more you know the better you will be during the entire process.
While it is not unusual for some mishaps to occur during the home buying process, there are some red flags that first-time buyers overlook or don’t know about.
Not Saving Enough. It’s easy for emotions to take over and cause excitement, but it can quickly dissipate if you realize that you don’t have enough money to maintain your new home. Many buyers are able to save enough money for the minimum downpayment. This could lead to higher mortgage payments. You should also consider closing costs, maintenance and moving costs when planning your budget. START SAVING AS EARLY AS POSSIBLE & AIM TO HAVE A CASH RESERVE OF three to six months worth of daily living expenses.
Don’t be prequalified for a loan. Don’t let the “estimated monthly loan amount” numbers beside your dream home on Zillow distract you. Talk to a mortgage loan officer, and provide documents that will give you an accurate picture of what you’ll pay. Ask your mortgage lender for information about the first-time buyer options, and search for programs in your area.
Don’t check your credit report. Remember how we said that knowledge is power? Before you start looking for homes, get clear about your credit score. Your credit report will be reviewed by mortgage lenders. You’ll need to present yourself to get a better offer. It is possible to avoid issues by asking for free credit reports every year and then disputing any errors.
Setting up or hurrying the process. It’s not easy, but it is important for first-time homebuyers to practice patience. Sometimes it’s easy to rush or believe a property is better than it really is. Before you make a deposit, take your time. This will help you avoid costly mistakes. Tip – Spend a night in your new neighborhood to see what it is like. To test it, look for VRBO or Airbnb in your area.
Skipping home inspection or not. There are many horror stories about first-time homebuyers who skipped a home inspection. The consequences could be disastrous. Many HOME EXPERTS SAY that home inspections are “the most important fact-finding step in purchasing a house.” It could reveal things such as mold and poor plumbing. If you are unable to attend, hire a professional home inspector.
These common mistakes should not discourage you from home-buying. Rather, it should help you feel confident that you are making the best decision for your family and yourself. These tips will help you to be successful when you begin your search for your first home.
Original Blog: https://www.landhub.com/land-news/5-first-time-home-buyer-mistakes-and-how-to-avoid-them/
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