Being a first-time home buyer can be a very nerve wrecking time. We want to make sure you have as much information as possible to make the home buying process easy for you. On top of that, we want to make sure that you are receiving the highest degree of service. We have put together a list of the top mistakes first-time home buyers make, so you can ensure you do not make these mistakes.
Looking at homes before getting pre-approved
The real estate market is extremely competitive. Looking at homes before you are pre-approved can cause for delay which could cost you the home you desire. First things first, get pre-approved! This will avoid any let down.
Only getting one rate quote
The more quotes you get, the more you can compare to make sure you are doing what is best for you. We suggest getting at least three different rate quotes from different lenders. Make sure to consider customer service of the lender, as well as the rate.
Not knowing how much house you can afford
Some first-time home buyers will only look at the highest number they qualify for versus the monthly payment. You do not want to put yourself into a situation that you cannot afford. Talk with your lender to discuss what you can afford.
Blowing your savings
We understand that purchasing a home can be expensive, but you do not want to drain your entire savings. Try your hardest to keep a few months of living expenses in your savings. You rather be cautious than careless!
Taking out credit while under contract
Lenders will check your credit report one last time right before closing and pulling new credit and making large purchases can really change your financial situation. Making large purchases while under contract will alter your debt to income ratio which could cause you to no longer qualify for the loan. We encourage all home buyers to NOT draw out ANY credit nor make ANY large purchases during the home buying process. You do not want to make large purchases while under contract either because this You do not want to do anything that could cause you to miss out on the home of your dreams.
Not exploring all loan options
There are many different types of loans offer to home buyers. The government has three insured loan programs that are worth exploring. FHA loans, VA loans, and USDA loans. Talk with your loan advisor to find out if you qualify for any of these loan programs.
Ignoring the costs of owning a home
There are many costs that are associated with owning a home that first-time home buyers may not know about. You want to make sure you have enough cushion in your monthly budget for these hidden costs. Home maintenance can add up quickly, set a certain amount of money aside each month for these expenses.
These are just a few things that first-time home buyers do not think about simply because they do not know. We are here to educate and help you make the best decision for yourself.
If you are considering buying a home, please feel free to give us a call to chat. We do not want to pressure you into something that is not beneficial to you, but we do want to help you make the right choice for yourself.