Buying a home in this day and age can be competitive and complicated. From the different mortgage loan types, to what neighborhood you want to live in, the process can take some major thought. To avoid potential pitfalls, check out this list of 6 first time home buyer mistakes.
6 Common First Time Home Buyer Mistakes
Falling In Love With a House
This is one of the most common first time home buyer mistakes. It’s dangerous to fall in love with a house that is not under your name yet. Make sure to get pre-approved with a loan officer so you know that this home is a good fit for you, financially and physically. If you get too attached to a home that you later find out is not the best fit for you, it can lead to disappointment toward any other house. This can get in the way of a home that’s better suited for you and your family.
Skipping Home Inspection
Complete a home inspection before you close on the home so the seller is aware of any large tasks that need to be done. If you live in a home for a few years and find out that your furnace isn’t working properly, it can be extremely expensive, and quite a large headache to deal with down the road. By getting a home inspection done right away, you give yourself peace of mind and the opportunity to fix the home before you move in.
Forgetting About the Hidden Costs of Home Buying
There’s more that goes into buying a home than just the purchase of the home. You have to consider HOA fees, insurance, and utility bills. Before you close on a home, make sure your realtor gets you a pre-purchasing total cost estimate that includes all fees. By making a budget before you buy a home, you’re able to see what you’re on track to spend, and what homes are not suited for you and your family.
Not Taking Advantage of Any Programs for First Time Home Buyers
There are many down payment assistant programs out there geared directly towards first time home buyers. You don’t need to have saved 20% to buy any house. As a first time home buyer, you’re able to qualify for a FHA loan, with a 3.5% down payment, with a credit score of 580 or higher. Don’t let this be the reason you don’t buy a home, or get into financial trouble to buy a home. This is one of the most common first time home buyer mistakes.
Not Understanding Market Trends
Your realtor can help you in this area, but it is good for you to know too. Bid accordingly if you are looking to buy in a seller’s market or a buyer’s market. If you are buying in a seller’s market, there isn’t too much room to negotiate since competition is high among the many buyers. If you’re in a buyer’s market, you have a bit more room to negotiate.
Not Getting a Pre-approved Home Loan
Getting pre-approved before looking at homes is important so you know your loan limit. Once you understand the types of homes you can buy, then you have a good idea of neighborhood and cities you can buy a home in. You don’t want to have invested hours into house hunting just to find out you are looking at the completely wrong types of homes.
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We love working with first time home buyers! Contact the Fornerette Team to find out what your home loan options are and discover why so many first time home buyers choose Guild Mortgage Tacoma.