First Time Home Buyer Mistakes
In this post, I will be discussing,” first time home buyer mistakes“. The first thing that you’ll find out when you buy a home is the fact that it’s not going to be cheap.
The savings that you’ve carefully hoarded for your dream house will be gone like magic before even getting your hands on the keys to your new home. There will be expenses for a home appraisal, closing costs, home inspection, and the down payment.
First time buyers will have a hard time controlling these expenses due to the inexperience on their part towards the whole process. They say that “knowledge is power” so learn to avoid the common mistakes of the first time home buyer and save yourself money.
First Time Home Buyer Options
Costs must be kept to the minimum even when you are tempted to buy a home that has many options. Decisions made in haste will make you spend more than what you intended. Here are some of the most common first time home buyer mistakes.
First Time Home Buyer Mistakes To Avoid
1. Stay away from risky loans
There are different kinds of loan products that you need to discuss in-depth with a loan officer or mortgage broker. An adjustable rate mortgage may give you an interest rate that is lower on its early stage, but will definitely increase in later years. A 15-year mortgage will not be a good option either because a shift in your income won’t make you meet your payments.
2. Spending too much on a house
Your credit report is the determinant for your affordability. However, there are some lenders that will approve a higher loan than what you can afford to pay. This may excite and tempt you to splurge on a house which quickly turns into a big problem when the bills start coming. Be smart and stick to your budget.
3. Not doing inspection of the house
Buying a house does not require an inspection, more so when the seller is trying to offload it as fast as he can. Yet, you are taking a big risk if you do not inspect the house that you want to buy. There may be problems with the electrical wirings, the roof, the foundation or the plumbing. Inspecting these problems will make the seller take responsibility for them.
4. Not Scouting Around
Talk with several lenders before purchasing your first house. You can save money on the closing costs and interest rates if you scout around and select the best option.
Purchasing a house will be a stressful time even if you are a first time buyer or an experienced one. Learning the process makes you avoid costly mistakes and give you the home that you want.
Make sure to share this page with anyone about to make their biggest purchase of their life so they can avoid first time home buyer mistakes.