It’s the time of your life – you’re about to buy your first home, and everything needs to go right. However, due to lack of experience, first-time homebuyers often don’t get the most out of their first purchase. There are several aspects of buying a home, and all of them need to be considered in detail to make sure you’ve purchased the best home for your family. To get a house that fits your needs, preferences, and budget, you need to take a more serious approach. More importantly, you need to be prepared to avoid mistakes in the home-buying process. This guide will serve as a heads-up to this – here are the seven most common mistakes first-time buyers make and how to avoid them.
Forgetting to apply for a mortgage first
When you step into the market and start browsing homes for the first time, you need to be ready. And by that, we mean that you need to be prepared to put out an offer if a house you like pops up. Good homes go off the market quickly–faster than getting the mortgage approval letter. By then, a perfect place you had your eye on is gone, and now you’re at the beginning again. Be ready for the competitive market we’re in and get preapproved first.
Remember: when you apply for a mortgage, you must compare different loan sources and lenders. Going for the first option that comes your way is also one of the ordinary homebuyers’ mistakes, so be sure to research and compare at least three different loan sources.
Underestimating the power of credit score
Your credit score determines the course of your purchase, as lenders check your score before closing to make sure there are no issues. It’s essential to make your score as high as possible, as this can jeopardize the final steps of the purchase. Not checking your credit score before applying is undoubtedly one of the most common and most serious mistakes to avoid as a homebuyer. Fix anything that can be a problem, and if there are some issues left, be sure to disclose them to the lender. Your credit score is something you can make better, so be sure to check it out when you decide to browse homes.
Not staying within their budget
One of the common mistakes first-time buyers make is buying a house that’s not within their budget. It’s easy to fall in love with a property, but it’s hard to pay for it years after the purchase. Even if you qualify for a bigger loan, make sure you analyze your monthly earnings and expenses to be sure you can keep up with house costs. Home prices are going up these days, so it’s essential to stay within your budget and play it safe. With a good agent, you’ll be able to find a home that fits your needs and requirements but is also something you can afford.
Forgetting about hidden costs
After you check out your credit score and apply for a loan, it’s necessary to be realistic about all the expenses coming your way after the purchase. There are different costs many future homeowners don’t take into consideration. You can’t avoid these expenses altogether, but you can be prepared for them. After buying a house, you’re expected to take care of the property taxes, insurance costs, regular maintenance, and unexpected repairs. These expenses can pile up and cost about 1 or 2 percent of the house price. There are also costs of decorating and furnishing your home – and unless you’re buying a small apartment, these can be pretty high.
Furthermore, certain homes are part of an HOA, which comes with additional fees. You’re now facing a different lifestyle as owning a home is fantastic, yet it can get expensive. However, it can all go well if you plan your budget on time and ensure you don’t overspend.
Buying in a hurry
If you want a smooth buying process and good value for money – you need to take it slow. Rushing the process can only cost you more money and energy, and you want to avoid that as much as possible. Start planning this purchase as early as possible so you have enough time to save for all the purchase costs – down payment and closing. Also, give yourself enough time to go slowly through the mortgage process, review your credit score, and browse houses. However, it’s essential to act fast when it comes to a perfect opportunity and a good home pops up.
Focusing solely on the property
One of the most common mistakes first-time buyers make is focusing on the property only. Surely, the house you buy needs to be in good condition, provide enough space for your family, etc. However, it is also critical to look around and see the neighborhood your house is in. Picking the right location where you’ll live and raise your family is as important as choosing the right property. Avoid the feeling of loving the house but hating everything around it – take your time and choose carefully.
Not working with professionals
As you don’t have much experience with buying a house and moving, trusting professionals to assist you can be very beneficial. Let’s say that you are thinking about moving to Washington, DC. An experienced agent knows more about this city’s market and can connect you to the perfect property. Also, the moving process can be a challenge if there’s no helping hand. If you don’t know the area well and want to come here for good – trust a team of Washington interstate movers that is familiar with the area. Trusting a skilled and reliable team always pays off and reduces the stress of moving into the unknown.You’re faced with one of the most challenging yet very exciting and fulfilling events in your life. Even though mistakes first-time buyers make are common, it’s also easy to avoid them with proper research and preparation. Now, start exploring your loan options, and so you can begin looking for your dream home as soon as possible!