Buying a home for the first time can be very exciting, but also challenging. There are many steps to take, from finding a home that fits your budget to closing a deal. A little bit of knowledge goes a long way in making the home buying process go more smoothly.
If you’re a first-time home buyer, these are some common mistakes that people make when buying a home. If you can avoid these pitfalls, you’ll be much better set up for successful home ownership.
Not Knowing Your Budget
Before you even start looking for homes, you should know exactly how much you can afford. A mortgage calculator can help you determine how much your down payment should be and what your monthly mortgage payments will be based on the size of your down payment.
Keep in mind that there are other costs associated with buying a home beyond just the down payment and mortgage payments. You will also have to pay property taxes and homeowner’s insurance. You may also have to pay escrow fees, attorney fees, and private mortgage insurance. It's important to factor these costs into your budget too.
Neglecting to Take Advantage of First-time Home Buyer Programs
If you’re buying a home for the first time, you may not have a lot of money saved for a significant down payment. However, that doesn’t mean that you have to hold off on buying a house. There are many programs available for first-time home buyers that can assist with the down payment and lower your mortgage rates.
Do some research online or talk to your mortgage lender about first-time home buyer assistance. You may be eligible for a VA Loan, which requires no down payment. Other programs include the USDA Loan for rural properties and the FHA Loan from the Federal Housing Administration.
Not Getting Pre-approved for a Loan
Every first-time home buyer should be pre-approved for a loan. During the pre-approval process, a mortgage underwriter will assess your finances including your credit, debt, and ability to repay a loan. If they believe you’re a good candidate for a loan, they will give you a pre-approval letter.
A mortgage pre-approval letter will give you a good indication of how much money you have to work with. It also shows sellers that you are serious about buying and it can make the closing process go faster because you will already have that paperwork in order.
Letting Emotions Take Over
It’s easy to get emotional when buying a home for the first time. After all, this will be the first property that you actually own and you want it to be a good one. However, a home is a big investment, so you want to make sure that you’re making a logical decision that isn't based on excitement .
Before you start looking for a home, make a list of all the things you absolutely need in a home. These should be your non-negotiable points. Think back to your list when you look at each home and carefully consider whether each home suits your actual needs, lifestyle, and budget.
Not Choosing the Right Real Estate Agent
Having a good real estate agent on your side can make the home buying process far less stressful. The key is finding a real estate agent who understands your needs and has the knowledge and connections to find the perfect home for you.
Look for a real estate agent who knows the area well. For example, if you’re looking for Colorado Springs homes for sale, you want an agent who has insider knowledge of the Colorado Springs market and neighborhoods. You also want to find an agent who you can relate to and trust.
Skipping a Home Inspection
A home inspection may seem like an additional expense that you can do without, but it’s actually an incredibly important step in the home buying process. A professional home inspector will be able to tell if there are major problems with the structure of the home and whether the systems in the home are functioning properly.
A home inspection will let you know whether the home is safe and liveable and alert you to any repairs that could end up being costly for you. If there are repairs that need to be made, you may be able to negotiate with the seller to fix the problems or adjust the price of the home accordingly.
Are you a first-time home buyer looking for Colorado Springs Real Estate? If so, we can help! Contact us online or at 718-598-4700 to speak to one of our local real estate experts today!
Posted by RE/MAX Properties, Inc. on