5 First-Time Homebuyer Mistakes To Avoid
Have you decided to purchase a home? Do you want to know the mistakes that most first-time homebuyers make to avoid them? You are in the right place. This write-up aims to uncover most mistakes the first-time homebuyers are vulnerable to make.
Buying a home is a good decision and investment. However, there are mistakes to avoid if this is your first time. Read this article to the end to avoid possible mistakes and make an informed decision.
1. Looking for a Home Without a Budget
The first mistake that most first-time homebuyers make is searching for a home without a budget or having a mortgage under processing. It is a mistake you must avoid because the search would only be a waste. Get the process right. Decide how much you can afford (budget) and apply for a budget before finding a real estate agent to help you in searching for your dream home.
2. Ignorance of Total Cost of Homeownership
It is not an offense to be a first-time homebuyer, but acting in ignorance of all the costs involved in homeownership is a mistake you should avoid. You must have been used to the monthly cost of renting that includes rent, utilities, cable bills, and the internet.
However, as a homeowner, you would be responsible for more bills, such as sewer, water, and garbage bills, monthly HOA’s (in case of a condo), lawn care, basement waterproofing, homeowners insurance, property taxes, monthly mortgages, etc. Consider all these costs and be ready financially to foot those bills.
3. Choosing Only One Lender
There are several lenders you can contact to get a mortgage. Do not limit yourself to only one lender, move around, and explore all options. Contact no fewer than three lenders and mortgage brokers. Compare loan terms, fees, and rates. Do not overlook responsiveness and customer service.
4. Exhausting Your Savings
Many first-time homebuyers usually spend almost their savings on the 29 percent down payment and closing cost. Avoid going house broke by creating an emergency fund and save up to three months of living expenses to take care of yourself after buying a house. You can contact a real estate agent for the likely total cost involved in purchasing a home.
5. Skipping the Home Inspection
Until you visit the house you want to buy and inspect it, you may not know that it has some issues covered up with paint. Do not believe everything your real estate agent tells you to hook, line, and sinker. Get to inspect the house with an experienced homeowner.
Avoid the above mistakes usually made by first-time homebuyers. To have a hassle-free home buying experience, work with an experienced real estate agent.