In order to get a conventional loan, you’ll probably need at least a 620 FICO score.
First-time homebuyers should work on improving their credit score before applying for any loans. In addition to building their credit score, they’ll also need to apply for a mortgage, pay off debt, and create a budget.
There’s a lot to do before buying your home, and you’ll definitely feel the pressure once you become a first-time homebuyer. Luckily for you, we’re here to help you prevent major mistakes.
Below is a list of 5 first-time homebuyer mistakes you’ll need to avoid. Keep reading to learn how to steer clear of disaster.
1. Not Creating a Budget
When making any major purchase, it’s important to have a budget plan. This is especially crucial when buying a new house.
Sit down one day to create a budget for your new home. Consider how much space you’ll need, how much maintenance you plan to do, and the location you’re searching within.
If creating a budget is too overwhelming, hire a financial advisor.
2. Not Sticking to the Budget
Once you have your budget, make sure to stick with it! Many first-time homebuyers make the mistake of buying a home that’s much too expensive.
Guarantee you’ll have plenty of wiggle room for maintenance, furniture, and repairs after purchasing a home. What’s the point of having a fancy home if you can’t furnish it?
3. Not Hiring an Agent
Many couples are afraid to spend money on hiring a real estate agent. While it seems like a big investment, it’s a worthwhile investment.
An agent will help find homes that match your needs and desires. They’ll handle a lot of the gritty work so you have a little more room to breathe.
If you have questions about working with a real estate agency, click to discover more. You’ll be blown away at how helpful an agent can be!
4. Not Completing a Home Inspection
Protect yourself, as a homebuyer, by completing a home inspection. Even if a home looks good on the outside, you never know what’s happening underneath the surface.
A home inspection may find broken pipes and unseen water damage. Finding these things beforehand prevents you from having to pay out of your own pocket for repairs.
5. Not Using a Good Broker
One of the worst mistakes when buying a home is not using a good, trusted broker.
Find a broker with a trustworthy reputation and happy former clients. You’ll need a broker who finds you the best deals and carefully walks you through the application procedure.
Buying a home is already difficult enough. Don’t make it harder by choosing a lousy broker.
Avoid These First-Time Homebuyer Mistakes
Are you about to become a first-time homebuyer? Make sure to read the above list of first-time homebuyer mistakes to prevent disaster.
Work hard to create a budget. Collaborate with a team that includes a real estate agent, a broker, and a financial assistant. And always complete a home inspection before buying!
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