You are ready to buy your first home. It’s exciting! You have those nervous butterflies in your stomach. Buying your first home should be a wonderful experience. Try to avoid making these common first time home buyer mistakes.
- Don’t put yourself in a situation to become house poor. Just because a bank or mortgage company will lend you a certain amount of money doesn’t mean you should take it all. Live within your means. Sit down and write out all of your monthly expenses. Run the numbers to know what mortgage payment you can afford and still live comfortably.
- Your credit score will play a big part in if you can get approved for a mortgage. Be conscious of your spending. It’s important to have your a high credit score to ensure you will get a good mortgage rate and a mortgage approval.
- Take the time to get a preapproval before you start your home search. This process will take some time and it will look better to agents and sellers if you have a preapproval in place.
- Buying the wrong house is a big mistake first time home buyers sometimes don’t think about. Walking into a house and seeing granite countertops and stainless steel appliances can be really appealing. But the cheaper house down the street might be the better fit. And you could probably get those countertops and stainless appliances cheaper if you do it yourself then paying more for an overpriced house that already has them.
- The location of the house should be a big consideration as well. Things change in your life. You may not have kids now...but in a few years who knows. Think about how location affects home resale values. Your needs now may not be the same as your needs two years down the road.
There are so many things to do and to consider when you make the decision to buy your first home. Be sure to do the research and prep work you need to make the best choice for you. A good realtor will help you avoid these common first time home buyer mistakes.